.The Texas Energy Report

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.The Texas Energy Report

Few Changes Expected for Oil Supply, Demand

By Alex Mills

December 12, 2019

Crude oil markets were cautious following the meeting of OPEC last week, and the announcement by the International Energy Agency (IEA) it expects a modest increase in worldwide supply and demand.

Crude oil was trading in the $63-$64 range on the international market from Brent crude oil and in the $58-$59 range for West Texas Intermediate on the New York Mercantile Exchange.

OPEC agreed to cut another 500,000 barrels per day (b/d) from it previously announced cuts of 1.2 million b/d in an effort to deplete the oversupply worldwide. Saudi Arabia led the agreement by announcing it will reduce production another 170,000 b/d. Russia, a non-member of OPEC but one of the three largest oil producers, said it will cut another 70,000 b/d. Iraq, a member of OPEC, said it would reluctantly cut 50,000 b/d. Iran and Venezuela have involuntarily reduced exports because of other factors, including sanctions by U.S.

The IEA report, released about two weeks before the OPEC meeting, said production from non-OPEC countries, such as the U.S., will increase from 1.8 million b/d to 2.3 million b/d next year. The Energy Information Administration (EIA) at the U.S. Department of Energy predicts U.S. production will increase 900,000 b/d to 13.2 million b/d in 2020 even though the drilling rig count has declined about 20 percent this year…..
 

Update On Clean Up at TPC Port Neches: Law/Fire Unified Command

December 10, 2019

“Unified Command reports ongoing response efforts at TPC Group Port Neches Operations remain focused on safely bringing the event to an end.

“Situational update: Response efforts continue to focus on activities to secure site equipment and minimize impact to the environment, while preserving the safety of emergency responders.

“On Monday (December 9), TPC Group began introducing an additive known as “DEHA” (diethylhydroxylamine) to storage tanks containing butadiene to stabilize the materials for longer-term storage, transportation, and removal from the site. DEHA is used to inhibit or prevent chemical reactions in storage tanks and it is commonly used in industry operations and materials transport. TPC Group is introducing DEHA to 11 storage tanks containing butadiene using portable equipment. This will be a phased process and is expected to take approximately five days to complete. No off-site impacts or public health concerns are anticipated as part of the DEHA process…..
 

Update: Port Neches New Evac Order Lifted, Cause of Plant Fire Possible Fundamental System Failure

Vapor cloud cited before explosion, official says, noting loss of “process fluid”

 

December 5, 2019

A voluntary evacuation order was lifted Thursday afternoon by the city of Port Neches and Jefferson County, after residents were again asked to evacuate homes near the plant that exploded and caught fire more than a week ago, an event so far being blamed on a “fundamental” system failure……
 

U.S. Becomes Net Petroleum Exporter

By Alex Mills

 

December 5, 2019

Petroleum imports to the United States have been a major concern for policymakers for more than 50 years.

Economists and national security experts warned of the huge outflow of dollars that were leaving the U.S. and going to countries that were not very friendly, such as Iran, Iraq and Venezuela. It became such a huge concern that the federal government created the Strategic Petroleum Reserve as an insurance policy against a future supply disruption.

Petroleum imports, which includes crude oil and petroleum products, rose steadily through the 1960s and the remainder of the 20th century until 2008 when oil and natural gas production began to rise. In 2015, the law restricting exports was lifted and the tide turned.

This week the Energy Information Administration announced the U.S. exported more petroleum than it imported in September for the first time since it began keeping records in 1973. EIA said exports exceeded imports by 89,000 barrels per day (b/d)…..
 

Capacity Reserves To Be Greater Next Summer, ERCOT Forecasts

Peak demand forecast is up on increased O&G and industrial electricity needs in West Texas and the Gulf Coast, but reserves from renewables and small, flexible gas-powered sources are up too

 

December 5, 2019

ERCOT says its planned power reserve margin will be up to more than 10% by next summer, the electricity manager for most of Texas says in its latest estimate of demand and reserves……
 

Legal Filing Challenges Trump Administration Failure to Halt Fossil Fuel Expansion in 20-year Plan for Texas, Kansas, Oklahoma: CBD Press Release

December 4, 2019

HOUSTON— The Center for Biological Diversity is challenging the Trump administration’s plan to expand federal fossil-fuel extraction in Texas, Kansas and Oklahoma. The new resource management plan would allow leasing and extraction of oil and gas on 4.4 million acres of publicly owned lands and minerals and coal extraction on nearly 1.7 million acres.

The Center’s legal protest, filed Monday, challenges the Bureau of Land Management’s failure to align public lands management with climate needs by phasing out new fossil-fuel leasing and extraction. The protest also says the BLM failed to analyze potential harm from fossil fuel extraction to wildlife, rivers, air quality and drinking water.

“We urgently need to stop burning fossil fuels, but instead the Trump administration is flooring the gas,” said Taylor McKinnon, a senior campaigner at the Center. “Each new lease locks in pollution our climate can’t afford.”….