SunEdison has started construction of a $420 million wind farm project in Bingham, Maine. The project, which will have 56 turbines, is expected to create 400 construction jobs and will power 65,000 homes when finished. Construction should be completed in 2016.
Domestic crude oil output in April reached its highest level since May 1971 at 9.701 million barrels per day, up 9,000 barrels per day, according to data released Tuesday by the Energy Information Administration. Shale drilling technology has driven the output growth by allowing access to previously isolated oil reserves. Meanwhile, monthly production is expected to decline beginning in June, the agency said.
Some business thinkers appear to believe that making workers happy is less important than ensuring their engagement, but the two qualities are linked, writes Rodd Wagner. Engagement without concern for employees is one-sided, Wagner argues. "[T]he leader who unreservedly wants the best for his or her workers will find they reciprocate with tremendous commitment to the firm and intensity in their work," he writes.
The Pipeline and Hazardous Materials Safety Administration on Wednesday issued a proposed rule requiring pipeline operators to report breaches and leaks to the National Response Center within an hour after an incident. "We will continue to update our regulations to positively influence pipeline operator safety programs and to address concerns related to failures, operator error and other safety risks," said Stacy Cummings, PHMSA interim executive director.
U.S. Geological Survey researchers analyzed data from IHS Energy on over 81,000 domestic wells and found that water usage for hydraulic fracturing was highest in shale plays. The volumes of water used for fracking range from 2,600 gallons to 9.7 million gallons per well, according to the analysis published in Water Resources Research.
Some shale drillers could go through a financial setback amid the looming expiration of their hedging contracts, observers say. Revenue from hedges is expected to decline further after a 37% drop in 2014 as companies convert contracts into cash, according to the Bloomberg Intelligence North America Exploration and Production Index of 62 companies. "Some companies are not nearly as well-hedged for 2016 as they were for this year. They're going to have a real cash-flow crunch," said Omar Samji, a partner at law firm Jones Day.
FourPoint Energy has reached a deal involving three transactions to buy oil and natural gas assets from Chesapeake Energy subsidiaries Chesapeake Exploration and CHK Cleveland Tonkawa for a total of $840 million. The assets include about 1,500 producing wells in Oklahoma with an average production capacity of 21,500 barrels of oil equivalent per day and almost 250,000 net acres of mineral rights. The deal is expected to be completed Aug. 31.
Royal Dutch Shell said Wednesday it is moving forward with its Appomattox deepwater development off the Louisiana coast in the Gulf of Mexico after it cut the project's costs by 20%. The company expects to begin production before the decade ends, with peak output projected at approximately 175,000 barrels of oil equivalent per day. Shell Upstream Americas Director Marvin Odum said the final investment decision for the project is among the largest this year.
The American Petroleum Institute will introduce in the following weeks a recommended practice aimed at developing an organizational safety culture for pipelines within the industry, Group Director of Midstream and Industry Operations Robin Rorick said Wednesday. API has worked closely with the National Transportation Safety Board and the Pipeline and Hazardous Materials Safety Administration in developing the standard, Rorick said.
Energy XXI said Wednesday it completed the $21 million sale of the East Bay Field in the Gulf of Mexico to an undisclosed buyer. The field has over 100 pay sands with an estimated reserve of 9.4 million barrels of oil equivalent. President, Chairman and CEO John Schiller said the transaction enables Energy XXI to concentrate on more profitable fields, adding that the company will continue weighing possible sales of non-core assets in the Gulf.