Trump issues new permit for Keystone XL oil pipeline

[Boat + 1,323]

This is an oil site filled with oil people and I do not wish to be a troll. On the otherhand pointing out refining creates pollution and we don't need 20% of it for basic US consumption is a fair point.

Those aquifers that are being drawn down. How much of our water is shipped out in the form of wheat, corn, and soybeans at the expense of future US generations.

To me I try to think in terms of ....wait for it...sustainability over the next few hundred years. Some people would call that being responsibe.

Someday buzz words like growth and demand will give way as an overpopulated world deals with self induced implosion.

[Enthalpic + 1,496]

5 hours ago, Ward Smith said:

What CEO said above. I didn't mean to say it can't be done chemically, I meant refineries can't do it, it's not the way they are setup. I'll try to be more clear in my correspondence

Refineries have dimerization and/or alkylation units.

https://www.mckinseyenergyinsights.com/resources/refinery-reference-desk/dimerization-unit/

https://www.mckinseyenergyinsights.com/resources/refinery-reference-desk/alkylation-unit/

I'm just a chemistry geek.

[ceo_energemsier + 1,818]

8 minutes ago, Enthalpic said:

Refineries have dimerization and/or alkylation units.

https://www.mckinseyenergyinsights.com/resources/refinery-reference-desk/dimerization-unit/

https://www.mckinseyenergyinsights.com/resources/refinery-reference-desk/alkylation-unit/

I'm just a chemistry geek.

Chemistry or no chemistry (no pun intended LOL), the purpose and intent of a refinery and a petchem plant are different. There are and maybe several overlapping/common process engineering aspects used and basic and or complex or primary and tertiary feedstocks, the bottom line is different products.

[Enthalpic + 1,496]

17 minutes ago, ceo_energemsier said:

Chemistry or no chemistry (no pun intended LOL), the purpose and intent of a refinery and a petchem plant are different. There are and maybe several overlapping/common process engineering aspects used and basic and or complex or primary and tertiary feedstocks, the bottom line is different products.

Of course, I was just being pedantic and pointing out that it can and is done in certain circumstances.

The beauty of chemistry is that as long as you have the elements and enough energy you can pretty much make anything.

Edited April 7, 2019 by Enthalpic

[Mestengo + 1]

There once was a group of visionaries that declared "the world moves on the backs of horse flesh" while inhaling an ever shifting mixture of manure and petroleum fumes.

Long /CL & XOP

[Ward Smith + 6,615]

36 minutes ago, Enthalpic said:

Of course, I was just being pedantic and pointing out that it can and is done in certain circumstances.

The beauty of chemistry is that as long as you have the elements and enough energy you can pretty much make anything.

Ah, spoken like a true chemist. We'll have to ask the chemical engineers if it can be done at anything remotely profitable

[Enthalpic + 1,496]

38 minutes ago, Ward Smith said:

Ah, spoken like a true chemist. We'll have to ask the chemical engineers if it can be done at anything remotely profitable

Thank you. The whole polyethylene industry proves it's profitable in a way; otherwise I think it's only for high end fuels (high octane rating) or for blending into other crap to make it pass tests.

The other thread about negative natural gas prices has me thinking more about this type of thing. Obviously the ethane, and the often overlooked noble gas, fractions have value - but the methane is very undervalued.  It could be partially oxidized to formaldehyde, polymerized to paraformaldehyde and then hydrogenated to ethanol - all just using methane and some air (oxygen).  Gas generator for electricity, gas boiler for heat, gas feed stock... and you get ethanol that can easily be blended with gasoline at 10%.

https://en.wikipedia.org/wiki/Formaldehyde

https://en.wikipedia.org/wiki/Paraformaldehyde

https://pubs.rsc.org/en/content/articlelanding/2017/gc/c7gc01887h#!divAbstract

 

[Ward Smith + 6,615]

3 hours ago, Enthalpic said:

Thank you. The whole polyethylene industry proves it's profitable in a way; otherwise I think it's only for high end fuels (high octane rating) or for blending into other crap to make it pass tests.

The other thread about negative natural gas prices has me thinking more about this type of thing. Obviously the ethane, and the often overlooked noble gas, fractions have value - but the methane is very undervalued.  It could be partially oxidized to formaldehyde, polymerized to paraformaldehyde and then hydrogenated to ethanol - all just using methane and some air (oxygen).  Gas generator for electricity, gas boiler for heat, gas feed stock... and you get ethanol that can easily be blended with gasoline at 10%.

https://en.wikipedia.org/wiki/Formaldehyde

https://en.wikipedia.org/wiki/Paraformaldehyde

https://pubs.rsc.org/en/content/articlelanding/2017/gc/c7gc01887h#!divAbstract

 

Fischer-Tropsch was only viable when there were strong external economic pressures (usually boycotts). But even I could make it profitable if they were Paying me to take the methane

[Enthalpic + 1,496]

16 hours ago, Ward Smith said:

Fischer-Tropsch was only viable when there were strong external economic pressures (usually boycotts). But even I could make it profitable if they were Paying me to take the methane

https://www.shell.com.my/business-customers/shell-middle-distillate-synthesis.html

Cool stuff

[Ward Smith + 6,615]

That is cool. Notice they're not making Diesel, too commodity, instead they seem to be specialising in high value products. Even then, I'm wondering if they're benefiting from stranded natural gas input streams? Probably a better use than LNG investment. Good find

[Jan van Eck + 7,558]

On 4/7/2019 at 1:39 PM, Boat said:

This is an oil site filled with oil people and I do not wish to be a troll. On the otherhand pointing out refining creates pollution and we don't need 20% of it for basic US consumption is a fair point.

Those aquifers that are being drawn down. How much of our water is shipped out in the form of wheat, corn, and soybeans at the expense of future US generations.

To me I try to think in terms of ....wait for it...sustainability over the next few hundred years. Some people would call that being responsibe.

Someday buzz words like growth and demand will give way as an overpopulated world deals with self induced implosion.

Boat, is water being shipped out?  Sure it is.  But that is not really an issue for the USA.  Ironically, the USA has a great surplus of water.  Politicians, including those that control the Army Corps, prevent the movement of water.  Not so in China, where a vast network of large aqueducts have been built (and probably more being built), mostly to take water from the South to the North. 

If you look at the North Central MidWest, up in Minnesota / North Dakota there is the Red River, which flows North into Manitoba and routinely causes a huge headache in flooding.  That is all "surplus water," basically useless, causing big problems.  There is no technical impediment to building an open aqueduct large enough for a canal boat to run in, starting in North Dakota and flowing South to Texas.  This does not get done due to politicians and the Army Corps getting in the way.  But it could be.  The amount of water flowing into flood terrain in Manitoba will out-distance that shipped abroad in the form of grains by several factors. 

To see the impact of severe flooding, I invite you to take a good look at the situation at Devil's Lake, North Dakota, which has risen some 27 feet in fifteen years, flooding out vast stretches of Minnesota (including some 170,000 acres of farmland, plus the farmers).  Check it out on YouTube, if you like; it is staggering:  https://www.youtube.com/watch?v=L3HCbdExcCc

Now that vast, raging ocean of water throwing big boulders up onto the highway, which can only be driven in convoy behind a heavy truck filled with sand to weigh it down, and a hefty snowplow up front to remove the rocks and debris, is not the North Sea in some storm; no, that is North Dakota farmland, now underneath 25 feet of water.  Yup, it is like that horror movie sci-fi flick, "Waterworld," starring Kevin Costner as the mutant, part mermaid.  Here is North Dakota, converted into a raging North Sea look-alike:

Yup, that is farmland out there, used to be planted in wheat.  Bottom line: there is plenty of water out there, it just is allowed to slip through our collective fingers.  Poor management, and lots of political incompetence.  Actually, hardly a surprise.  Cheers.

[Boat + 1,323]

5 hours ago, Jan van Eck said:

Boat, is water being shipped out?  Sure it is.  But that is not really an issue for the USA.  Ironically, the USA has a great surplus of water.  Politicians, including those that control the Army Corps, prevent the movement of water.  Not so in China, where a vast network of large aqueducts have been built (and probably more being built), mostly to take water from the South to the North. 

If you look at the North Central MidWest, up in Minnesota / North Dakota there is the Red River, which flows North into Manitoba and routinely causes a huge headache in flooding.  That is all "surplus water," basically useless, causing big problems.  There is no technical impediment to building an open aqueduct large enough for a canal boat to run in, starting in North Dakota and flowing South to Texas.  This does not get done due to politicians and the Army Corps getting in the way.  But it could be.  The amount of water flowing into flood terrain in Manitoba will out-distance that shipped abroad in the form of grains by several factors. 

To see the impact of severe flooding, I invite you to take a good look at the situation at Devil's Lake, North Dakota, which has risen some 27 feet in fifteen years, flooding out vast stretches of Minnesota (including some 170,000 acres of farmland, plus the farmers).  Check it out on YouTube, if you like; it is staggering:  https://www.youtube.com/watch?v=L3HCbdExcCc

Now that vast, raging ocean of water throwing big boulders up onto the highway, which can only be driven in convoy behind a heavy truck filled with sand to weigh it down, and a hefty snowplow up front to remove the rocks and debris, is not the North Sea in some storm; no, that is North Dakota farmland, now underneath 25 feet of water.  Yup, it is like that horror movie sci-fi flick, "Waterworld," starring Kevin Costner as the mutant, part mermaid.  Here is North Dakota, converted into a raging North Sea look-alike:

Yup, that is farmland out there, used to be planted in wheat.  Bottom line: there is plenty of water out there, it just is allowed to slip through our collective fingers.  Poor management, and lots of political incompetence.  Actually, hardly a surprise.  Cheers.

A non issue? 

https://www.nationalgeographic.com/magazine/2016/08/vanishing-midwest-ogallala-aquifer-drought/

[Boat + 1,323]

5 hours ago, Jan van Eck said:

Boat, is water being shipped out?  Sure it is.  But that is not really an issue for the USA.  Ironically, the USA has a great surplus of water.  Politicians, including those that control the Army Corps, prevent the movement of water.  Not so in China, where a vast network of large aqueducts have been built (and probably more being built), mostly to take water from the South to the North. 

If you look at the North Central MidWest, up in Minnesota / North Dakota there is the Red River, which flows North into Manitoba and routinely causes a huge headache in flooding.  That is all "surplus water," basically useless, causing big problems.  There is no technical impediment to building an open aqueduct large enough for a canal boat to run in, starting in North Dakota and flowing South to Texas.  This does not get done due to politicians and the Army Corps getting in the way.  But it could be.  The amount of water flowing into flood terrain in Manitoba will out-distance that shipped abroad in the form of grains by several factors. 

To see the impact of severe flooding, I invite you to take a good look at the situation at Devil's Lake, North Dakota, which has risen some 27 feet in fifteen years, flooding out vast stretches of Minnesota (including some 170,000 acres of farmland, plus the farmers).  Check it out on YouTube, if you like; it is staggering:  https://www.youtube.com/watch?v=L3HCbdExcCc

Now that vast, raging ocean of water throwing big boulders up onto the highway, which can only be driven in convoy behind a heavy truck filled with sand to weigh it down, and a hefty snowplow up front to remove the rocks and debris, is not the North Sea in some storm; no, that is North Dakota farmland, now underneath 25 feet of water.  Yup, it is like that horror movie sci-fi flick, "Waterworld," starring Kevin Costner as the mutant, part mermaid.  Here is North Dakota, converted into a raging North Sea look-alike:

Yup, that is farmland out there, used to be planted in wheat.  Bottom line: there is plenty of water out there, it just is allowed to slip through our collective fingers.  Poor management, and lots of political incompetence.  Actually, hardly a surprise.  Cheers.

A non issue? 

https://www.nationalgeographic.com/magazine/2016/08/vanishing-midwest-ogallala-aquifer-drought/

 

http://www.weathernationtv.com/news/study-shows-changes-in-great-plains-ogallala-aquifer/

[ceo_energemsier + 1,818]

Permian gas pipeline could ease bottlenecks, give global access

For $3.7 billion, Permian Global Access Pipeline LLC intends to build a shale gas pipeline that would connect the Permian shale play to Lake Charles, Louisiana. The shale gas would be utilized by Tellurian Inc., a publicly traded natural gas entity looking to source natural gas from the U.S. for export across the globe.

An open season call on the pipeline has been started. If completed, the pipeline will use a 42-inch diameter line to move roughly two billion cubic feet per day of natural gas. For Tellurian, the pipeline is only part of a larger infrastructure buildout plan. In total, Tellurian wants to invest $7.3 billion in U.S. infrastructure in addition to another $15.2 billion on a liquified natural gas export facility in Lake Charles.

The Permian is currently one of the top shale gas producing regions in the world. Meg Gentle, CEO, said producers there have had to pay $9.00/mmBtu just to move their gas from the region to outside markets.

The proposed pipeline would originate in Pecos County, Texas. Construction could be finished by

2023.

The U.S. currently has one LNG export facility located in Louisiana. By 2021, the U.S. Energy Information Administration believes the country will house five LNG export facilities capable of exporting 9.2 bcf/d.

According to April data from the EIA, the Permian is producing more than 14 mcf/d of shale gas.

Gentle said in addition to helping Permian producers, some of the natural gas sourced from West Texas could be used in Louisiana.

“Southwest Louisiana is a market expected to grow 300 percent in the next five years,” she said. “The Permian Global Access Pipeline is critical infrastructure that will interconnect stranded Permian gas production with growing markets, reduce flaring, and provide a valuable cleaner fuel to reduce urban pollution and carbon globally.”

Earlier this year, Tellurian also signed a long-term offtake deal with India for LNG sourced from the U.S.

[ceo_energemsier + 1,818]

Deal to acquire Anadarko positions Chevron as Permian leader

HOUSTON, Apr. 12

04/12/2019

Chevron Corp. has agreed to buy Anadarko Petroleum Corp. in a cash and stock deal that values Anadarko at $50 billion and creates growth opportunities for Chevron in areas that play to its operational strengths.

“The combination of Anadarko’s premier, high-quality assets with our advantaged portfolio strengthens our leading position in the Permian, builds on our deepwater Gulf of Mexico capabilities, and will grow our LNG business,” said Michael With, Chevron chairman and chief executive officer.

In 2018’s fourth quarter, Anadarko produced 691,000 boe/d (nearly 60% oil) from the Denver-Julesburg (DJ) basin (40%), the Permian basin (20%), and the Gulf of Mexico (20%), Cowen analysts said in a research note Apr. 11.

Upon close, Chevron would become the second-largest producing major in 2019 terms from its current position at number four, according to Wood Mackenzie analysts, and puts ExxonMobil, Chevron, Shell, and BP “in a league of their own,” said Roy Martin, Wood Mackenzie senior analyst, corporate analysis.

The new entity would move ahead of Shell and BP in terms of oil and gas production, trailing only ExxonMobil and the five biggest national oil companies in terms of the world’s largest producers of oil and gas, according to Rystad Energy.

Tight oil

As of Feb. 5, Anadarko was operating 14 drilling rigs in the US onshore, with 9 in the Delaware basin, 4 in the DJ basin, and one in the Powder River basin.

Anadarko is the largest producer in Colorado’s DJ basin, where its 400,000 net acres are estimated to hold more than 2 billion boe of recoverable resources. In the Permian’s Delaware basin, Anadarko holds nearly 600,000 gross acres and 8,500 ft of stacked oil potential. The combination of the two companies will create a 75-mile-wide corridor across Delaware basin acreage.

“By buying Anadarko, they take on a highly contiguous Delaware basin position in the Permian. Chevron ought to be able to do more with the acreage than Anadarko, which lagged behind in terms of well productivity,” WoodMac's Martin said.

“We have always considered Anadarko as having the best positioned acreage in the sweetest spot of the Permian Delaware basin,” commented Per Magnus Nysveen, Rystad Energy founding partner and head of research. The combination of Anadarko’s Permian assets with Chevron’s positions the company to emerge “the clear leader among all Permian players, both in terms of production growth and as a cost leader,” he said.

“By 2025 the merged entity will be able to produce as much 1.6 million b/d of oil from the Permian basin alone,” Nysveen said.

Chevron expects the combine to enhance its existing position in the deepwater Gulf of Mexico and extend its deepwater infrastructure network. Anadarko is a large leaseholder and producer in the deepwater gulf, with infrastructure that includes 10 operated deepwater facilities. The company’s newest spar facilities, Lucius and Heidelberg, began production respectively in January 2015 and January 2016.

Chevron would gain a resource base in Mozambique to support growing LNG demand. Anadarko is a 26.5% owner and operator of Mozambique LNG, a 12.88 million-tonne/year LNG project expected to take final investment decision in the first half of this year. Plans for the onshore consists of two initial LNG trains to support Golfinho-Atum field, which lies entirely within Offshore Area 1, where the company and its partners have discovered 75 tcf of recoverable natural gas resources.

With the deal, Chevron gains access to Western Midstream Partners LP.

“Chevron has been noticeably absent in the midstream rush of the past couple of years. It now takes a 55% stake in Western Gas, which goes a long way toward fixing that,” said RT Dukes, WoodMac research director, Lower 48 oil and gas. The structure was simplified last year, “giving Chevron a vehicle to spin assets down in the future if needed,” Dukes said.

Transaction details

The 25% cash, 75% stock deal values Anadarko at $50 billion. The offer is priced at $65/share, representing a 39% premium over Anadarko’s close on Apr. 11. In aggregate, upon closing, Chevron will issue some 200 million shares of stock and pay about $8 billion in cash. Chevron will also assume estimated net debt of $15 billion.

The transaction is expected to generate annual run-rate synergies of $2 billion and will be accretive to free cash flow and earnings one year after close, said Michael Wirth, Chevron chairman and chief executive officer.

Using the deal size as a marker, RBC analyst Scott Hanold sees synergies moving upward to $4-5 billion “as the portfolios get rationalized and priorities are clarified,” subject to “the success of Chevron’s asset sales program, which has now been upgraded from $5-10 billion over 2018-20, to $15-20 billion over 2020-22.

“Looking through the lens of assets with limited growth potential,” he said, Chevron could divest assets in Canada, Colombia, Azerbaijan, and select parts of its Asian portfolio.

The transaction, approved by both companies’ boards, is expected to close in the second half of this year, subject to Anadarko shareholder approval, regulatory approvals, and other customary closing conditions.

Upon closing, the combine will be led by Michael Wirth as chairman and chief executive officer and remain headquartered in San Ramon, Calif.

[ceo_energemsier + 1,818]

Argus launches new crude price reflecting shifting Permian crude quality

Houston, 10 April 2019

Global energy and commodity price reporting agency Argus today launches a new light crude price assessment to reflect growing light oil production in the Permian basin of west Texas and New Mexico. The new West Texas Light (WTL) price, published daily in the Argus Crude report, is for Permian basin crude with a gravity of 44.1-49.9°API traded at terminals in Midland, Texas.

Midland is the chief gathering hub for Permian basin crude, the fastest growing source of oil in the world. An increasing share of Permian crude is lighter than 44°API, and midstream companies have created the WTL stream to separate lighter crude from the denser main Permian WTI grade, which is typically at 40-44°API.

Much WTL trade is taking place at differentials to Argus’ benchmark WTI Midland price, which is assessed at terminals in Midland, Texas. Argus will publish its new WTL price assessment as a differential to WTI Cushing as well as an outright number.

WTL has also begun to trade at Houston at a differential to the benchmark Argus WTI Houston price, which is widely used to price US exports. Argus WTI Houston, which is assessed at Magellan’s MEH terminal, is also the settlement price for derivatives contracts on the Ice and CME exchanges, where open interest currently stands at 200mn bl with daily trading volumes topping 10mn bl. Argus intends to publish a separate WTL Houston index as volumes grow.

"Argus welcomes the opportunity to provide greater transparency to the market for Permian crude as production continues to grow and as more of the output is lighter than traditional WTI,” Argus Media chairman and chief executive Adrian Binks said. “Argus WTI Houston and Argus WTI Midland are two of the most liquid and transparent physical spot crude price indexes in the world. We expect to see the liquidity of the WTL market at Midland and later at Houston grow rapidly as well.”

[ceo_energemsier + 1,818]

Concho Resources Forms Permian Midstream JV To Support Midland Basin Growth

Concho Resources agreed to form a JV with Frontier Midstream Solutions, which will build and provide crude oil gathering, transportation and storage services in the Northern Midland Basin.

Concho Resources Inc. formed a midstream joint venture (JV) on April 15 to support its continued oil production growth in the Midland Basin region of the Permian.

The Midland, Texas-based shale producer said it agreed to form Beta Crude Connector LLC (BCC) through a JV with Frontier Midstream Solutions IV LLC. BCC will build and provide crude oil gathering, transportation and storage services in the Northern Midland Basin.

Concho and Frontier will each own a 50% equity interest in BCC, with Frontier serving as operator.

The new gathering and transportation system will consist of a roughly 100-mile gathering system, 250,000 barrels of crude oil storage facilities as well as truck terminals. The pipeline system will have the initial capacity to deliver 150,000 barrels per day of crude oil to multiple delivery points, accessing local refineries and connecting to several downstream pipelines, according to a joint press release.

Concho’s planned activity for 2019 is expected to deliver oil growth of 26% to 30% across its roughly 640,000 net acres in the Permian Basin. In the Midland Basin, the company has about 260,000 gross acres.

Jack Harper, president of Concho, commented, “Through the joint venture, we will leverage Frontier’s midstream expertise and enhance the value of our high-quality footprint in the Midland Basin with a reliable, cost-efficient gathering and transportation solution. Importantly, this is a compelling investment opportunity that we can make with no changes to our capital plans.”

Currently, Concho plans to spend between $2.8 billion and $3 billion in 2019, which represents a 17% reduction from the company’s prior capital guidance.

In conjunction with the JV agreement, Concho also agreed to enter into a long-term acreage dedication agreement with BCC.

Following an open season set for April, construction on BCC will commence, targeting initial flows in mid-2019.

BCC will file for FERC authority to operate as a common carrier pipeline and solicit interest from other producers and marketers for capacity on the new system.

Frontier Midstream Solutions, headquartered in Tulsa, Okla., is owned by Frontier Energy Partners II LLC and certain funds of Energy Spectrum Capital. 

[William Edwards + 708]

When 2020 rolls around, Keystone XL will be a forgotten subject. By that time the world will have informed Canada (with the price of oil) that more pipeline capacity exists than  the need for oil exported from Canada allows to be utilized. For any of you who might be interested, put a note on your calendar for 1/1/2022 to tell Edwards how wrong (or right) he was. 

Much ado about nothing!