#rbn

Every Time I Turn Around - Diluent Pipe Reversals to Help Alberta's Crude Takeaway?

Enbridge is taking a serious look at converting its Southern Lights pipeline, which currently transports  diluent northwest from Illinois to Alberta, to a 150-Mb/d crude oil pipe that would flow southeast. The potential reversal of Southern Lights is made possible by the facts that Western Canadian production of natural gasoline and condensate — two leading diluents — has been rising fast, and that demand for piped-in diluent from the Lower

Steppin' Out With My (LNG), Part 3 - The Rise of U.S. Feedgas Demand in 2019

After a period of delays, commissioning activity at the newest U.S. LNG export terminals is poised to accelerate in the coming months, in turn bringing on incremental feedgas demand. Sempra’s Cameron LNG has said it’s ready to introduce feedgas to its fuel system and is awaiting federal approval. Meanwhile, liquefaction projects at Kinder Morgan’s Elba Island LNG and Freeport LNG terminals are gearing up to take feedgas in the next

Keep on Keepin' On - Fractionation Constraints Limit Ethane Supply as Demand Rises

There’s never a dull moment in the ethane market. Four new steam crackers and an expansion at an existing plant are slated to begin operating along the Gulf Coast in 2019, and a recently restarted Louisiana cracker will continue to ramp up to full capacity — together adding about 250 Mb/d of ethane demand by year’s end. You’d think there would be plenty of ethane out there for them. After

Everything Has Changed - The Frac Sand Revolution

The U.S. frac sand market has been turned on its head. Over the past three years, demand for the sand used in hydraulic fracturing has more than doubled, dozens of new “local” sand mines have been popping up within the Permian and other fast-growing plays, and frac sand prices have fallen sharply from their 2017 highs. The big changes don’t end there. Exploration and production companies (E&Ps), who traditionally left

Just Can't Get Enough - IMO 2020 and the Heavy-Sour Crude Shortage

Last year, the impending implementation of International Maritime Organization’s rule mandating the use of lower-sulfur marine fuels starting January 1, 2020, widened the price spread between rule-compliant 0.5%-sulfur bunker and the 3.5%-sulfur marine fuel that has been a shipping industry mainstay. Traders’ thinking was that demand for high-sulfur bunker would evaporate in the run-up to IMO 2020, as the new rule is known. But since early January, the spread between

Roll With the Changes - Appalachia Leads Northeast Power Generation Shift to Gas

Appalachia — the U.S.’s leading gas production region — is also one of the last bastions of coal country in the broader Northeast. That dual reality makes it one of the remaining pockets in the region where there is significant potential for upside in natural gas demand for power generation. Gas burn for power in the Appalachian states — Pennsylvania, Ohio, West Virginia and Kentucky — surpassed power burn in

Hard to Handle - Can Bakken Producers Finally Put a Lid on Gas Flaring?

Producers in the Bakken and the rest of North Dakota flared record volumes of natural gas in the fourth quarter of 2018 — an average of more than 520 MMcf/d, or about 20% of total production — far exceeding the state’s current 12% flaring target. What happened? For one, crude oil production in the play took off; for another, the gas-to-oil ratio at the lease continued to increase. And while

Steppin' Out With My (LNG), Part 2 - The Rise of U.S. Feedgas Demand in 2019

U.S. demand for LNG feedgas has picked up in recent weeks, posting a record high of 5.6 Bcf/d in late February and averaging more than 5 Bcf/d in March to date, as Cheniere Energy completed the fifth train at Sabine Pass and the first at Corpus Christi. That level is nearly 1 Bcf/d higher than last month and nearly double what it was at this time last year. But it’s

NGLs Standing By - The Fractionation Crunch Continues, But Help Is on the Way

Fractionators at the Mont Belvieu hub operated at or near full capacity through the second half of 2018 as they struggled to deal with a deluge of mixed NGLs from the Permian and other key production areas. This situation — barely enough capacity to keep pace with rising demand for fractionation services — is likely to continue through 2019, even as a number of new fractionators come online. But NGL

The Last Resort, Part 2 - New England and Maritimes in New Battle for Gas Supply

After 19 years of natural gas production from the waters off the Canadian Maritime provinces, ExxonMobil, operator of the Sable Offshore Energy Project (SOEP), shut down production there, effective January 1, 2019. The closure further limits gas supply options for the already supply-constrained Maritimes and New England regions. Will the shutdown put even more stress on the already overtaxed gas pipeline system in New England? And will it spur increased