Oil rig counts climb for third straight week The total number of rigs actively drilling in the United States rose by ten this week, reaching 884, according to the latest rig count from Baker Hughes (ticker: BHI). The number of rigs drilling for oil rose for the third straight week to 670 while rigs drilling for gas increased by four
Bakken, Permian and Eagle Ford replacing Saudi imports of light and medium crudes Imports of medium-grade crude oil to Gulf Coast refineries were down 45% in the first quarter of 2015 compared with the first quarter of 2014, reports the Energy Information Administration (EIA). Medium-grade crude imports fell to 0.8 MMBOPD in Q1’15 from 1.5 MMBOPD the year before. Almost
PBF purchases Chalmette Refinery and other assets for $322 million PBF Energy (ticker: PBF) announced today that its subsidiary has signed an agreement to purchase Chalmette Refining, LLC in New Orleans, Louisiana for $322 million plus working capital including inventory to be valued at closing, according to a company press release. The purchase includes the refinery, which has a 189
Higher crack spreads led to better refining margins for Integrated Oils, but can’t offset their upstream loses Integrated oil and gas companies saw much higher profits from their refining operations in the first quarter of this year than in Q1 2014, but it is not enough to offset the effects of the precipitous fall of crude oil prices on the
Lower crude prices and higher demand for gasoline driving higher margins Gasoline crack spreads in the United States, especially on the U.S. East Coast, have reached several-year highs in recent months. A recent note from the Energy Information Administration (EIA), looked at crack spreads in order to get an idea of refiner profitability. In April 2015, wholesale conventional gasoline in
Dakota Prairie Refinery Commences Startup Operations MDU Resources Group, Inc. (MDU) and Calumet Specialty Products Partners, L.P. (CLMT) today announced that the Dickinson, North Dakota-based Dakota Prairie refinery, the first greenfield fuels refinery built in the U.S. in nearly 40 years, has commenced operations. The facility has begun producing diesel fuel and is expected to begin sales of diesel as
Expects to Significantly Expand its Midstream Business Long Term Valero Energy (ticker: VLO), the largest refiner in the United States with throughput capacity of 2.90 MMBOPD, reported net income of $964 million, or $1.87 per share, in its Q1’15 results on April 28, 2015. The results are a record for VLO’s first quarter operations and are 16% higher than Q1’14
Russia buys 49% stake in Vietnamese refinery Gazprom Neft (ticker: GZPFY), the oil arm of Russian state-owned Gazprom (ticker: OGZPY), and Vietnam Oil and Gas Group (PetroVietnam) have signed a series of agreements to strengthen ties between the oil and gas industries in the two nations. As part of the agreement, Gazprom Neft will acquire a 49% stake in the
U.S. refiners using most domestic oil in 29 years Refineries in the United States are relying on domestically produced crude oil now more than any other time since 1986. Domestic production and imports from Canada and Mexico made up 85% of crude processed at U.S. plants in January, the most since March 1986, reports Bloomberg. Crude output in the U.S.
Gasoline Prices Continue Edging Up As if the dwindling rig counts, record inventories and falling temperatures weren’t enough for the oil and gas industry, another complication is arising at the tail-end of the system. Strikes spearheaded by the United Steelworkers Union (USW) increased on February 23, 2015, and now consists of a total of 15 facilities, including 12 refineries. The
Avoiding Downtime During Winter Freeze is the Goal Access to infrastructure is a vital asset for oil and gas producers. Despite infrastructure investments as high as $40 billion per year, production from E&Ps continue to outpace the takeaway capacity in booming areas like the Marcellus and the Permian. Spot prices in Midland, Texas are trading at a $17 discount to
Pengerang, Malaysia is the designated site for RAPID—Refinery and Petrochemicals Integrated Project—a mega-sized refinery and energy-focused industrial and petrochemical complex. RAPID was launched to boost Malaysia’s future energy needs, economic growth and to establish Petronas’ position as a key player in the Asian chemicals market. The 2,526-hectare site in Pengerang, Johor, is part of the Johor State’s Pengerang Integrated Petroleum
