FOSSIL FUELS

PHMSA Proposes Revisions to Expand Scope of Natural Gas Pipeline Safety Regulations

EnerKnol Research Reports, Fossil Fuels, Natural Gas, PRODUCTS

On March 17, 2016, the Pipeline and Hazardous Materials Safety Administration (PHMSA) proposed revisions to safety standards for onshore natural gas transmission and gathering pipelines. The revisions could impose significant regulatory requirements for additional miles of natural gas pipelines, including pre-1970 pipelines previously exempt from PHMSA regulations, and are estimated to cost industry between $39.8 and $47.4 million a year. Regulatory requirements for automatic shut-off valves and underground storage have been postponed for future rulemaking.

California Leak Exposes Risks of Increasing Reliance on Natural Gas

EnerKnol Research Reports, Fossil Fuels, Natural Gas, PRODUCTS

Key Takeaways: The California Department of Conservation (DOC) will issue emergency natural gas storage regulations in response to a persistent leak at the Aliso Canyon Natural Gas Storage Facility in Los Angeles County This incident exposes underground storage risks and regulatory disparity as utilities continue to increase natural gas-fired generation Innovative methane detection technology will…...

Spending Bill Lifts U.S. Oil Export Ban And Extends Tax Credit For Renewables

EnerKnol Research Reports, Fossil Fuels, Oil, PRODUCTS

Key Takeaways: Removal of crude oil export restrictions expands U.S. access to the global market, but an immediate boost to U.S. crude exports is unlikely due to the global oil-supply glut and low prices Crude oil exports could harm the domestic refining industry, although the level of impact depends on the refining sector growth and…...

Regulators Reconsider Utility Hedging Policies Given Shifts In Natural Gas Flow

EnerKnol Research Reports, Fossil Fuels, Natural Gas, PRODUCTS

Key Takeaways: Florida’s investor-owned utilities will continue to employ current natural gas hedging practices, which have resulted in approximately $6B opportunity costs Evolving supply-demand dynamics of the natural gas market spur utility commissioners to reconsider hedging policy Ongoing state efforts to enhance hedging mechanisms reflect the need for long-term supply contract structures   Insight for…...

New Pipeline Expansions Target Emerging North American Demand Centers

EnerKnol Research Reports, Fossil Fuels, Natural Gas, PRODUCTS

Key Takeaways: Natural gas pipeline expansions will deliver new incremental production from the Marcellus and Utica regions to emerging markets in the Midwest, Southeast and Gulf Coast Cross-border pipelines are increasing natural gas exports to Canada and Mexico Bidirectional pipeline projects will optimize potential excess supply in the Northeast during spring and fall Impending liquefied…...

DOT Proposes Tougher Safety Regulations for Hazardous Liquids Pipelines

EnerKnol Research Reports, Fossil Fuels, Oil, PRODUCTS

Key Takeaways: The Department of Transportation’s proposal to strengthen hazardous liquid pipeline safety would expand the agency’s integrity management requirements related to assessments, repairs, and leak detection The proposal would establish reporting requirements for certain unregulated pipelines, including all gathering lines New conservative repair criteria and response timelines would increase the number of anomalies that…...

Shell Cites Restrictive Regulations In Ceasing Arctic Drilling Operations

EnerKnol Research Reports, Fossil Fuels, Oil, PRODUCTS

Key Takeaways: Royal Dutch Shell will close its Arctic drilling activities, demonstrating the increasing complexity of Arctic operational conditions Declining oil prices create unfavorable environment for capital-intensive offshore drilling projects Finalized regulations and revised timelines that reflect challenging Arctic conditions are needed to foster Arctic oil and gas development in the future   Insight for…...

U.S.-Mexico Oil Swaps Unlock Avenue for U.S. Light Crude

EnerKnol Research Reports, Fossil Fuels, Oil, PRODUCTS

Key Takeaways: Light tight oil production from unconventional resources has prompted industry to seek export avenues Approval of U.S.-Mexico crude oil swaps provides an additional market for light crude and increases its value given the current limitations in U.S. refinery capability Oil exchange transactions will potentially enhance refinery utilization in the United States and Mexico…...

Senate Energy Package Focuses on Fossil Fuels and Electric Infrastructure

EnerKnol Research Reports, Fossil Fuels, Natural Gas, PRODUCTS

Key Takeaways: The Energy Policy Modernization Act of 2015 contains comprehensive reforms with impacts to gas, electric, and renewables, and it is likely to pass after the August recess The bill would require the Department of Energy (DOE) to issue final decisions on applications to export natural gas to countries that do not have a…...

Mexico’s Close-to-Shore Oil Auction Falls Short of Expectations

EnerKnol Research Reports, Fossil Fuels, Oil, PRODUCTS

Key Takeaways: Mexico’s July 15 opening Round One close-to-shore oil and gas auction fell short of expectations with only 2 of 14 blocks auctioned and a number of major international players sitting out Subsequent Round One auctions for deepwater oil fields will attract more interest from major players, but Mexico will be forced to revisit…...

BP Reaches $18.7 Billion Agreement to Settle Deepwater Horizon Spill

EnerKnol Research Reports, Fossil Fuels, Oil, PRODUCTS

Key Takeaways: BP agreed to settle all federal, state and local claims for $18.7 billion, with payments to be spread over 18 years The agreement increases BP’s financial certainty, but its reduced cashflow could lead the company to become a takeover target in the current low oil price environment New draft regulations would establish design…...

MATS Impacted by Supreme Court Decision, but Likely to Survive

Carbon Markets, Coal Power, Emissions, EnerKnol Research Reports, Environmental Markets, Fossil Fuels, Power & Utilities, PRODUCTS

Key Takeaways: The Mercury and Air Toxics (MATS) rule represented one of the most significant air pollution regulations in U.S. history when it was announced in 2011 The Supreme Court rejected the rule, ruling that the EPA should have considered costs initially when assessing whether the rule was “appropriate and necessary” The specific nature of…...