Methane Emissions Drop

alt="Methane Emissions"
New Study on Methane Emissions

A nationwide study published this week shows that methane emissions across the United States have dropped significantly in the past two decades and are much lower than current Environmental Protection Agency  estimates.

Related: UT Methane Emissions Study Results

Researchers from Washington State University assert that the EPA is using old data from 1992 that grossly overestimates current emission rates by 36 percent to 70 percent.

These findings come on the heels of the Obama administration’s announcement in January that it plans to regulate methane emissions from the nation’s oil and natural-gas industry. There is a worldwide push to reduce greenhouse-gas emissions due to fear if climate change.

Reaction to the study by the Environmental Defense Fund was that there is still too much methane gas escaping local distribution systems despite the improvements, with the losses comparable to the carbon dioxide from as many as 19 coal-fired power plants and valued at up to $195 million.“While they remain a serious problem, the ongoing utility emissions also represent an important opportunity for companies and regulators to make a big dent in greenhouse pollution,” said Jonathan Peress, the EDF’s air policy director for natural gas.

Methane is being targeted because it is believed to be 28 to 34 times more powerful than carbon dioxide at warming the atmosphere over a 100-year period. These EPA’s proposed regulations will require reducing emissions by 40-45% over the next decade.

Related: Methane Emissions from Two Main Sources says UT Study

Proposed legislation would force companies to install technology to prevent methane leaks and to monitor their operations for possible leaks, but many companies are already using this kind of equipment. In fact, the Washington State study credits advancements in equipment, better maintenance and government regulations for pushing down emissions.

Read the published article at pubs.acs.org

Excellence Awards Honor Continental & Whiting

Hamm sells Hiland
Hamm wins award

Every year, the Oil and Gas Investor honors the companies, deals and individuals who excelled in the North American energy industry for the prior year.

Honorees for 2014 OGI Excellence Awards will be acknowledged April 6th at Hart’s Energy Capital Conference in Austin. The event draws hundreds of executives from E&P companies, midstream operators, financial institutions and private-equity firms.

Best Discovery: Harold Hamm Harold Hamm, chairman and CEO of Continental Resources, will be honored for the year's Best Discovery for development of the Springer Shale oil play in south-central Oklahoma. Results released in September indicate that the play will yield top-notch initial output rates and economic returns.

More on Continental: Harold Hamm Gains More Bakken Acreage

M&A Deal of the Year Jim Volker, chairman, CEO and president of Whiting PetroleumCorp., wins the award for M&A Deal of the Year for purchasing Kodiak Oil & Gas in a $6 billion all-stock deal. This deal  propelled Whiting to the top-tier position in the Bakken Shale in North Dakota.

Read more: Whiting Petroleum Acquires Kodiak Oil & Gas - $3.8 Billion

Excellence Award Recipients:

  • Executive of the Year: Chuck Davidson, Noble Energy executive chairman
  • Financing of the Year: Eclipse Resources Corp.
  • Best Field Rejuvenation: Shell Oil Co.
  • Corporate Citizen of the Year: ConocoPhillips

Fore more go to oilandgasinvestor.com

Crude by Rail Up 1700%

Crude by Rail
Crude by Rail

The Energy Information Administration (EIA) released the latest data today for crude by rail  (CBR) across the country that shows a significant increase over the last five years.

Total CBR movement in the United States and between the United States and Canada was more than 1 million barrels per day (bbl/d) in 2014, up from 55,000 bbl/d in 2010. The regional distribution of these movements has also changed over this period.

Crude by rail continues to be highly controversial as people question the safety for individuals and the environment.  With production at an all time high, the CBR numbers will continue to escalate as producers must find a way to move their product.

Related: How the Keystone XL Pipeline Would Impact the Bakken

Related: DOT Seeks New Rail Car Design and Bakken Crude Testing

crude by rail3
crude by rail3

The EIA developed a new tracking system that will gather data across all regions of the country and parts of Canada from January 2010 through the current month. CBR activity is tracked between pairs of Petroleum Administration for Defense District (PADD) regions (inter-PADD), within each region (intra-PADD), and across the U.S.-Canada border.

EIA Administrator Adam Sieminski says that “EIA expects that the new data it has developed using information provided by the U.S. Surface Transportation Board (STB) along with data from other third-party sources and our own survey data, will provide key insights into oil-by-rail movements, including shipments to and from Canada.

Read more at eia.gov

Oil Export Ban May Hurt Economy

Oil Export Bans
Oil Export Bans

U.S. crude production reached record levels in 2014 and the growing surplus has many questioning why a 40 year-old oil export ban is still on the books.

The export ban on all petroleum products was imposed during the 1970s as a way for the government to control prices during a time of scarcity. But times have changed and since 2008, U.S. crude oil output has increase by 81%. This record production is beginning to overtake the industry's ability to economically process these growing volumes and producers and analysts are raising their voices to advocate for a repeal on the anachronistic law.

Related:Continental Resources CEO Pushing for Lift of Export Ban

Reporting to the Senate Committee on Energy and Natural Resources, IHS Vice President, Ambassador Carlos Pascual testified “The conditions that justified the crude oil export ban in 1973 no longer apply. More importantly, continuation of this ban hurts American consumers, causes an unnecessary drag on American productivity, and does not let the United States exploit fully the national security benefits from our energy resurgence.

Earlier this month, IHS issued a report on the implications of the current ban and concluded that lifting the export ban could create hundreds of thousands of additional U.S. jobs and add billions to the U.S. economy.

Related: Oil Export Ban Is Hurting Your Royalty Checks!

The report goes on to say that eliminating the ban will have far-reaching consequences for the U.S. economy including:

  • Further increases in domestic oil production
  • Lower gasoline prices
  • 964,000 additional jobs
  • Benefits to manufacturing and service-related sectors in every state
  • Strengthening national security and America’s position in the world

Read more at ihs.comPhoto: © Hramovnick

Halliburton Closing Minot Facility

Halliburton Closing Minot Facility
Halliburton Closing Minot Facility

Beginning April 1st, Halliburton will no longer have a presence in Minot, North Dakota. A spokesperson confirmed Tuesday that the company will suspend operations and close the facility, transferring employees to their Williston and Dickinson locations.

This is the latest in a string of announcements from Halliburton about their efforts to streamline operations in the face of the current crude pricing downturn. Earlier this year the company reported worldwide layoffs of 6,500 people followed by an announcement that they would close their facility in Regina, Saskatchewan in March.

Related: Energy Giants Announce Layoffs

Spokesperson Susie McMichae said that “The company continue to make adjustments to its workforce based on current business conditions. We value every employee we have, but unfortunately we are faced with the difficult reality that reductions are necessary to worth through this challenging market environment.