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Readiness, Response & Relief: How the Texas Oil and Natural Gas Industry Stays #HurricaneReady: TXOGA

July 31, 2019

The Texas Oil & Gas Association released the following column as a part of TXOGA’s year-long celebration of its centennial anniversary.

When we think of summer in Texas, we think of heat, holidays, hardball, hotdogs…and hurricane season. The Texas oil and natural gas industry not only plays a role in keeping Texans cooled off and fueled up for summer, the men and women of the industry also make it a point to stay ready for the next storm to threaten our shores.

Readiness

Over the years, the oil and natural gas industry has worked tirelessly to fine tune preparedness plans designed to protect people, the environment and the state’s fuel supply in the wake of storms. These painstaking plans are the result of years’ worth of post-storm assessments where the industry evaluates disaster response performance and looks for ways to improve.

For example, after Hurricane Rita in 2005, Texas created a Task Force on Evacuation, Transportation and Logistics, which developed a comprehensive slate of recommendations to fortify hurricane readiness, response and recovery plans. In 2016, the American Petroleum Institute (API) issued a fact sheet highlighting industry safety protocols, explaining fuel supply systems and market response, as well as providing helpful tips for consumers about how they, too, can appropriately prepare for and respond to hurricanes and natural disasters.

As storms approach the Texas coast, an army of refinery and pipeline workers and fuel suppliers begin round-the-clock work to ensure a safe and reliable fuel supply is available for Texas first responders and drivers making their way to safety. Depending on the strength of the storm, some refineries need to shut down in advance to keep workers and communities safe. At refineries, dedicated employees form “Hurricane Ride Out Teams” that stay at facilities throughout a storm and work to bring operations back online as soon as it is safe to do so.

Response

Industry’s natural disaster plans aren’t limited to physical oil and natural gas facilities. Communications and coordination is key to the Texas energy sector’s collaborative work with private- and public-sector entities to safeguard communities, the state’s energy infrastructure and its fuel distribution system. As part of this joint effort, the industry is a trusted partner of the Texas Department of Public Safety, Texas Commission on Environmental Quality, Texas Railroad Commission, Texas Department of Transportation, Texas ports, FEMA, health care facilities and local emergency management officials. The oil and natural gas industry is also a part of the Texas Division of Emergency Management’s Fuel Team, which works to ensure Texans have sufficient access to the gasoline and diesel they need.

Coordination and ongoing communication ensures that the Texas oil and natural gas industry and our partners can work in lockstep before, during and after a natural disaster…..
 

Oil In “Mild State of Contraction” with Headwinds, But Texas Strong, Passing 5m Bpd: TAEP’s Ingham

Texas breezes past production milestones; small gains in E&P employment while the service sector suffers; the huge imbalance between oil and natural gas in overall Texas production value; the Texas Petro Index up even as crude prices fall — and then there’s the well completions anomaly

 

July 31, 2019

The US oil industry faces some economic headwinds as a mild state of economic contraction continues, but growth remains strong in Texas with the state’s daily crude output likely higher than 5 million barrels a day, according to analysis by Karr Ingham, economist for the Texas Alliance of Energy Producers (TAEP) and an originator of the Texas Petro Index.

The headwinds include the continued volatility of oil futures prices, steel tariffs and US protectionist trade policy along with natural gas issues including the price, associated gas production and pipeline constraints, Mr. Ingham said during TAEP’s Midyear Update in Houston on Wednesday.

But he emphasized that growth momentum remains, with Texas currently in the process of smashing the all-time record for crude production and, overall, daily oil output standing at 42% of total US production……
 

Permian Basin Area Drilling Report: RRC

July 27, 2019

Permit applications approved by the Texas Railroad Commission for July 18 through July 24 for Districts 7C, 8 and 8A. Numbers in parentheses indicate the number of permits approved for that leasehold.

>> Anadarko E&P Onshore, LLC, Bullhead 55-1-22 Unit B, Loving, new drill; Heron 54-2-4 Unit, Loving, new drill (2).

>> Apache Corporation, University 2404 East B, Reagan, new drill; University 2404 East C, Reagan, new drill; University 2404 East D, Reagan, new drill.

>> Aqua Terra Permian, LLC, Deets SWD, Midland, new drill; Dishwater SWD, Midland, new drill.

>> Atoka Operating Permian, LLC, Reed Ranch, Sterling, new drill….
 

Oil, gasoline, natural gas prices flat: Alex Mills

By Alex Mills

Crude oil, gasoline and natural gas prices have been flat throughout the summer.

Crude oil prices during June and July peaked on July 12 at $60.21 per barrel on the New York Mercantile Exchange and bottomed out on June 6 at $51.14, according to data from the U.S. Energy Information Administration (EIA). Crude oil closed on Wednesday at $56.22.

Gasoline averaged $2.75 per gallon last week throughout the U.S., which was a decrease of $0.029 from the previous week and a decline of $0.081from a year ago. EIA said Texas had the lowest average gasoline prices last week at $2.501, and California had the highest at $3.569 per gallon.

EIA reports there has been an oversupply of crude oil and petroleum products, which has contributed to the soft prices.

“The US driving season has peaked but the global gasoline market remains tight,” according to a report from Bank of America….