Brent crude futures fell 0.9% to $79.29 per barrel Thursday, the lowest level since Sept. 21, while West Texas Intermediate for November delivery settled 1.6% lower to $68.65 per barrel after the Energy Information Administration reported a large US crude inventory build. Crude oil "stocks are rising in the U.S. and the reason is because pipes out of the US for exports are maxed out while US production is rising," said Bjarne Schieldrop, SEB Markets' chief commodities analyst.
A capital commitment from Charon System Advisors gives JupiterMLP sufficient funding to construct a crude oil pipeline from the Permian Basin to Brownsville, Texas. The pipeline will be able to ship one million oil barrels per day to Brownsville, where JupiterMLP is building more than 2.8 million barrels of storage and has secured government approval to load and unload vessels of up to 65,000 deadweight tons.
Earthstone Energy has struck two deals to acquire 20,800 net acres in the Midland portion of the Permian Basin from Sabalo Energy for $950 million in cash and stock. The asset package includes production of 11,200 barrels of oil equivalent per day, 488 gross operated horizontal drilling locations and 349 gross non-operated horizontal drilling locations.
The joint venture between Dauphine Midstream and Mercuria Energy Group, Pin Oak, has inked a 10-year deal with the Port of Corpus Christi in Texas to load Suezmax tankers at one of the port's crude oil export docks. Pin Oak will use Public Oil Dock 14, which has a minimum load of 40,000 barrels of product hourly.
The Trump administration aims to push ahead with its deregulatory agenda in 2019, which may include the revision of several oil and natural gas regulations, according to the Office of Management and Budget's newly released Unified Agenda. Among the deregulatory actions being considered by the administration are changes to Obama-era rules governing oil and gas facility security, oil and gas measuring, well control, as well as offshore air quality control, reporting and compliance.
Microsoft has worked with insurance and risk teams to develop a new type of contract that could potentially work with renewable energy power purchase agreements to minimize operational and pricing risks. The provision is called a volume firming agreement.
Interior Secretary Ryan Zinke shared three advances in US offshore wind during the American Wind Energy Association's Offshore WINDPOWER Conference 2018. The Interior Department will launch an offshore wind leasing round in Massachusetts on Dec. 13, is reviewing a project slated for Rhode Island and is exploring the feasibility of offshore wind in California, Zinke says.
Wind and solar in the Carolinas and other US states have a proven track record of maintaining grid stability during hurricanes and other natural disasters, while nuclear and coal-burning power plants have a greater likelihood for shutting down, according to the American Council on Renewable Energy. "Time and time again, renewable energy generators have demonstrated an incredible ability to withstand storms and bounce back quickly after extreme weather events," says ACORE spokesperson Gil Jenkins.
Wind and solar are two homegrown, increasingly low-cost energy sources that can directly help the US meet its climate goals by reducing carbon emissions, writes John Kostyack, executive director of the Wind Solar Alliance. "Shifting to a renewable energy-friendly policy framework can deliver the low-cost, carbon-free electricity needed to power our economy, while also creating hundreds of thousands of new jobs," he writes.
Offshore wind farms have unique benefits depending on their size, with large projects often offering lower prices while small projects are useful for supply chain development and workforce training, said EDF Renewables North America Regional Development Manager Doug Copeland. The company is seeking approval for a 25-megawatt offshore wind farm in Atlantic City, N.J.
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