operations

The global LNG market upheaval has wreaked havoc on U.S. LNG export demand this summer, which, in turn, has complicated operations at domestic export facilities. Gone are the days when U.S. LNG exports would move predictably, increasing with each new liquefaction train coming online and then mostly staying at or near capacity. Rather, as international LNG prices collapsed, U.S. LNG operators for the first time have had to contend with a relentless stream of cancelled cargoes and low facility utilization rates. More recently, cargo cancellations are showing signs of easing somewhat, as international price spreads are improving for fall and winter. But these recent market disruptions provide a window into the ways in which operational constraints and flexibilities will factor into LNG producers’ and offtakers’ decisions — and affect feedgas flows and capacity utilization — in a weak global market. Today, we consider some of the nuances of liquefaction operations.

COVID-19 has created a number of challenges across the energy value chain, including lower demand for motor gasoline and jet fuel and, subsequently, surplus crude oil. However, even with diminished demand, the facilities that produce and process these fuels have to keep operating at some level, as do petrochemical plants. Workers in the energy industry are considered essential due to the importance of having fuel available to power vehicles and manufacturing facilities, natural gas to enable continued operation of power industries, and logistical infrastructure to ensure that feedstock supply can make it to processing facilities and eventually consumers. Given the need for round-the-clock operations, COVID-related social distancing measures have presented a unique challenge for refinery and petrochemical facilities. To maintain adequate staffing while protecting personnel from the coronavirus, these facilities have been making major adjustments. If, as we all hope, things begin moving back toward “normal” in the coming months and refinery and petchem utilization ramps up, these efforts to keep workers safe will only gain in significance. Today, we discuss staffing issues in these key industry sectors during the pandemic.

They are unsung heroes, the guys and gals who get in early, stay late, and are usually working odd hours on the weekends. They resolve issues before they arise, solve complex problems when they do pop up, and are always working the phones to get the next hot piece of intel. No, we’re not talking about the new cast from Season 2 of “Jack Ryan,” and no, it’s not the kids from “Stranger Things.” The keyboard warriors we’re referring to are crude oil schedulers. They’re at the forefront of the daily logistics taking place at truck injection points, gathering systems, and takeaway pipelines from Western Canada down to the Gulf Coast (and around the rest of the world as well). As more and more new pipelines get built out in places like West Texas, it’s important to revisit the basics of how crude oil moves and the role that crude schedulers play. Today, we bring it back to the roots of crude oil operations and shine some light on an underappreciated group of crude oil operators.