Reports indicate that Sanchez Energy is soliciting buyers for about 25,000 net acres in the Eagle Ford Shale region in south Texas. Sanchez is said to be raising cash to further develop its best prospects, including a lucrative patch of the Eagle Ford known as the Catarina.
Executives at the Gulf Coast Industry Forum have pointed out that the Port of Houston is the only major US port to export more than it imports, and that the region continues to increase exports of almost every type of product derived from shale oil and natural gas. "I believe we're in a significant position to capture new business," said Port of Houston Executive Director Roger Guenther.
The Texas Railroad Commission has ruled in favor of Eastman Chemical in a 3-year-old pipeline dispute with Westlake Chemical. At issue was the cost of shipping ethylene, and whether Westlake was able to charge a free-market rate for the use of its Texas pipeline.
The Energy Information Administration says that crude and gasoline inventories unexpectedly rose last week despite a reduction in output from refineries, which prompted oil futures to drop. "The report is bearish, especially relative to expectations, led by the rise in crude oil inventories that was due to the refinery utilization declines and large rise in imports," said Again Capital partner John Kilduff.
Swiss trader Mercuria Energy Group has exported roughly 400,000 barrels of crude from small US producers. The load consisted primarily of shale oil from North Dakota, Wyoming and Colorado, and eventually made its way to Africa through a multi-step transport process.
Phillips 66 is performing maintenance work on a reformer unit at its refinery in Westlake, La., and plans to bring the refinery back online in mid-September, sources say.
Denver-based PDC Energy has acquired two privately held units in the Delaware Basin for $1.5 billion. "Adding this Delaware position to our Core Wattenberg acreage gives us more than 1 billion net boe of liquid-rich reserve potential in two of the top-tier US onshore basins," said Lance Lauck, executive vice president of corporate development and strategy.
Price increases on renewable fuel credits are generating profits for large gas station chains, allowing them to undercut smaller, independent operators on gasoline prices, according to a paper commissioned by the Small Retailer Coalition. The trend could lead to fewer retailers and higher gas prices for consumers, the paper argues.
A report from Citigroup analysts said the US Gulf Coast is on the path to emerging as a major LNG trading hub, and that could lead to an LNG futures market in the US. "What appears to be unfolding into next year is a seismic change in the functioning of the global LNG market," the report reads in part.
The University of Cincinnati has completed a three-year study that found no evidence linking fracking to groundwater contamination, writes Erik Milito, director of upstream and industry operations at the American Petroleum Institute. "The facts on fracking show that not only has the technology helped lower fuel, utility and manufacturing costs, and not only is it environmentally safe, but it is integral to U.S. status as the world's leading reducer of greenhouse gas emissions," he writes.
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