17 Years Bringing You News from the Energy Capital of the Planet
 
Author: <span>Shiloh</span>

It’s a (Politically Advantageous) Boy for Briscoe Cain! — Texas Monthly

February 13, 2020
 
By Sean O’Neel from Texas Monthly 2/13/2020:
 
While Texas state representative Briscoe Cain’s brand is largely defined by his own tough-guy cosplay and Second Amendment-related trolling, he can’t just send people screenshots of his tweeting threats to Beto O’Rourke. That’s really more of an October strategy. So in the meantime, he’s ensuring that voters somehow remember the name “Briscoe Cain” by reminding them of his long, proven record of breeding.

….
 

Oil Prices Decline As Coronavirus Expands

By Alex Mills

 

February 13, 2020

Worldwide crude oil prices have been soft during the past five years because of weak demand and an oversupply.

Recent news of the coronavirus in China, the world’s largest oil importer, has reduced demand further as its economy struggles to counter the downturn.

The U.S. Energy Information Administration (EIA) on Thursday revised its forecast for global liquid fuels down 378,000 barrels per day from its forecast in January. EIA believes demand will still increase by 1 million barrels per day this year averaging 101.7 million barrels per day globally.

“The difference between the forecasts is driven by a combination of lower-than-expected heating fuel consumption caused by the Northern Hemisphere’s warmer-than-expected winter, an expected slowing of economic growth in general, and the particular economic effects of the 2019 novel coronavirus outbreak,” EIA said.

The International Energy Agency based in Paris also predicts a decline in its demand growth by 435,000 barrels per day…..
 

French Chemical Company — And Executives — Face “Unprecedented” Houston Trial

Court-watchers eyeing “unprecedented” Harris County case in which company executives are charged with crimes along with the company … DA campaigned on cracking down on illegal polluters … Chemical company said it was in federal regulations compliance when chemicals exploded during Hurricane Harvey crisis, an “act of God”

 

February 11, 2020

Legendary Texas criminal defense lawyer Rusty Hardin will represent Arkema North America when the company and three of its leaders go on trial in Houston next week…..
 

Railroad Commission Adopts New Pipeline Safety Rules – Prohibits Installation of cast iron pipes; Adds New Requirements for Incident/Accident Reporting

February 6, 2020

AUSTIN –– New pipeline safety rules adopted by the Railroad Commission of Texas prohibit natural gas distribution pipeline operators from installing underground cast iron, wrought iron or bare steel pipelines. Other new pipeline safety requirements require operators to more thoroughly assess the potential public safety risk of gathering lines. The amendments are effective Jan. 6.

The Commission adopted these amendments on Dec. 17, 2019—weeks before a Dec. 31, 2019 statutory deadline for House Bills 864 and 866 passed by the 86th Legislature last year.

Local distribution gas pipeline operators transport natural gas to households and businesses through thousands of miles of small-diameter distribution pipes. RRC’s new pipeline rules also require these natural gas distribution pipeline operators to replace any known existing cast iron pipelines by Dec. 31, 2021.

“The Railroad Commission’s highest priority is public safety,” said RRC’s Executive Director Wei Wang. “These new amendments enhance our existing rules requiring pipeline operators to construct, operate and maintain their pipelines in compliance with Texas laws and regulations.”

“With more than 469,000 miles of pipelines, Texas’ pipeline infrastructure is key to delivering energy to Texans, the nation and world,” Wang said. “By taking truck traffic off the highways, pipelines continue to be one of the safest ways to transport crude oil and natural gas.”

According to the U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration, it would take a constant line of tanker trucks, about 750 per day, loading up and moving out every two minutes, 24 hours a day, seven days a week, to move the volume of even a modest pipeline.

Under the new measures, gathering line operators are required to report incidents and accidents on gathering lines that result in a death or in-patient hospitalization; property damage of $50,000 or more; or estimated gas loss of three million cubic feet or more. Operators also must submit a corrective action plan to the Commission to remediate an accident, incident or threat that creates a public safety risk or address a public safety complaint. Gathering lines transport gases and liquids from the commodity’s source—such as a wellhead—to a processing facility, refinery or a transmission line.

RRC’s Chapter 8 Pipeline Safety rules can be found at:

https://texreg.sos.state.tx.us/public/readtac$ext.ViewTAC?tac_view=4&ti=16&pt=1&ch=8

 

Petroleum Companies’ Financial Performance down

By Alex Mills

 

February 6, 2020

As many oil and gas companies began releasing their 2019 financial reports this week, it became apparent that last year was a stinker financially even though there was record production in the U.S.

Exxon Mobil, the nation’s largest energy company, reported a 31 percent decline in earnings compared to 2018.

Chevron reported an 80 percent decline.

Two other international, integrated petroleum companies – BP and Shell – also reported declines of 21 percent and 23 percent, respectively.

The large volume of crude oil and natural gas production in the U.S. has created an oversupply and caused prices to decline.

Crude oil prices dropped this week to $49 down $4.95 (10 percent) from a year ago, and natural gas sold for $1.87 at Henry Hub down $0.78 (29 percent). Prices have been soft during the last five year.

Declining petroleum prices have created lower gasoline, electricity, etc. prices. Gasoline dropped below $2 in some areas in Texas and averaged $2.45 nationwide…..