The Houston area added about 5,000 energy jobs in June and July, making the period the most active two consecutive months of hiring since the shale boom began.
The Houston, Sugar Land and Baytown region has now added about 8,700 energy jobs in 2014 through July, more than 7,700 in 2012 and the 4,700 added in 2013, according to U.S. Department of Labor statistics.I probably would not have led off with that today, except that yesterday's big news in Williston was the inaugural United non-stop flight from Houston (Texas) to Williston yesterday.
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Vacuum gas oil or VGO is one of those mystery products talked about by refiners but barely understood by those of us that are not engineers. However it is an important intermediate feedstock that can increase the output of valuable diesel and gasoline from refineries. Lighter shale crudes such as Eagle Ford can produce VGO material direct from primary distillation. Today we shed some light on this semi-finished refinery product.
A couple of years ago we posted a two part “tutorial” series on refinery operation basics. The second part of that series described upgrading units in a typical complex refinery that process the heavier and less desirable residual oil output from atmospheric distillation into lighter and more valuable refined products. The first of the upgrade processes that we described occurs in the vacuum distillation column (VDC). Vacuum distillation recovers gas oil from the residual oil. In layman terms vacuum distillation involves heating the residual oil in a vacuum so that the boiling point temperature is reduced. This allows distillation at temperatures that are not possible in atmospheric distillation since otherwise coke from the heavy residual oil tends to solidify. Vacuum distillation breaks out light and heavy gas oil fractions leaving vacuum residuum that can be further processed by a coker unit or sold as fuel oil.
The light and heavy gas oils output from the VDC are known generically as vacuum gas oil or VGO. There are many different names used in the US and worldwide for VGO but the basic division is between light VGO (LVGO) and heavy VGO (HVGO). When VGO is traded the sulfur content is also important since lower sulfur VGO (0.5% or less sulfur) is more valuable than 2% high sulfur VGO.Vacuum gas, the mystery gas; sort of like that mystery meat in chicken McNuggets.
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Active rigs:
| 8/22/2014 | 08/22/2013 | 08/22/2012 | 08/22/2011 | 08/22/2010 | |
|---|---|---|---|---|---|
| Active Rigs | 193 | 184 | 191 | 192 | 136 |
The Wall Street Journal
Headline story: US eyes wider action on militants. At least they aren't called terrorists.
Lots of stories recently about how much money the oil companies have been borrowing. Here's a front section story in The Journal: with rates low, firms near borrowing records. It's not just the energy industry; it's everyone. "US corporate-bond issuance is hurtling toward a record for the third consecutive year, as companies take advantage of a surprising interest-rate decline to stock up on cash.
Then the very next story: central bankers wrestle with easy money or as we called "foreign money" when we were stationed overseas: "play money."
The Bergdahl swap: the Pentagon's swap was really, really, really illegal. And that story will have no legs. "What does it matter?" Their words, not mine.
US existing-home sales up 4.2%.
Ferguson police tactics challenged (and changed) as conflict evolved. Mostly law enforcement a) let the fire burn out on its own; b) let local citizens take control; c) let the rain quiet things down; and, d) had a meeting with Mr Holder. Talking in code helped. I think the demonstrations pretty much quit when all the "good stuff" was taken.
This will change on an hourly basis, but it's always nice to see a headline like this: US oil prices rose slightly Thursday on tight supply and signs of an improving economy.
Disclaimer: this is not an investment site. Do not make any investment decisions based on what you rad here or what you think you may have read here.
S&P 500 ends at record.
The Los Angeles Times
Discord in the family: after Israeli attack, Hamas kills 11 suspected informers.
Iraq's Mosul dam remains volatile and unstable. Two words you don't want to see when reading about huge dams: volatile and unstable.
Now it's the earth's surface that is rising due to global warming. "Western drought causes Earth's surface to rise as groundwater drops." Hmmm...maybe that's why my popsicle sticks on the beach aren't showing any rise in ocean levels as predicted by warmists. The beaches are rising also.
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The Bakken -- First 24 Hours In Williston
[This is a good sign: having coffee in coffee shop on Main Street, Williston: seven people waiting in line -- 5 are women; two are men. Last year the line would have been longer, it would have been eight men in line. One woman is quite happy; her husband surprised her with an airline ticket; going home to visit family for short vacation. She was warned that some airlines are charging for carry-ons. On top of the $1300-ticket. That's just to get to Minot. LOL.]
Yes, there are a lot more women in Williston this year. I think a lot of college students.
First of all, I apologize for not posting more videos. I have a lot of video, but need faster wi-fi to get it uploaded. It will come. Maybe some photos later today.
I spent all of yesterday in Williston. I really do think traffic is much, much heavier this time -- compared to the last time I was here -- but the last time I was here, there were road restrictions due to rain, mud. However, there seems to be less traffic on the bypass west of Williston. I think trucks are using the new bypass farther west of the city.
There appears to be no police presence, and based on lessons learned in Ferguson (St Louis), Missouri, that explains why there appears to be no wide-spread demonstrations or looting in downtown Williston. The media said that the police presence in Ferguson was responsible for the riots and looting. It's also possible the fact that in Williston "everyone has a job" might be another reason. Whatever.
The big activity on Main Street, Williston, is new road construction. This project was to have started much earlier, but due to some bureaucratic snafus, apparently delayed. A block of Main Street is blocked off; foot traffic is still allowed.
Thinking back on Ferguson. I've seen the local signs in Belfield have been edited a bit. To this sign, "no shoes, no shirt, no service," they've added: "make sure your pants are pulled up." I would have taken a photo but somehow it didn't seem right.
But there is some crime. Headline story in Williston Herald yesterday: dognapper caught red-handed. Someone trying to steal a puppy from a pet store was caught in the act. I can't make this stuff up. Based on the methods used to try to steal the puppy, my hunch is the dog had a higher IQ than the would-be dognapper.
Speaking of no police presence, driving into the Bakken yesterday morning was quite an experience. I've alluded to it earlier. From five (5) miles south of Watford City to the 4-mile corner, during blackout conditions (night), fog, major road construction most of the way in an industrial zone: not one flagman, not one highway patrol cruiser with lights flashing; no temporary traffic signals. Traffic signs with speed limits were clearly recommendations only. The best spot to be was behind a truck driver who had traveled the route a thousand times. The worse spot to be was the lead car going through the obstacle course with a fast-moving, fully-loaded 18-wheeler 18 inches off your rear bumper.
[Speaking of which, night-time driving. For cross-country driving, what is more important, the sun or the moon? Clearly, the moon. The moon provides the only real light during night; the sun is out during the day when it's already light anyway.]
Having said that, I have huge respect for the truckers; of all the folks I think who are underpaid across the nation, the truckers may be at the top of my list. Seriously. Maybe they are well paid in the oil patch but there are any number of stories written in the national press about the shortage of truck drivers, the low pay, long hours, and time away from home.
The first five videos I have are of driving into Williston. Some folks are going to get upset that I don't have videos of the oil patch. Those videos are coming.
This is a video of driving into the Williston area just after the sun had come up. I had been driving for 40 straight hours -- two short cat naps somewhere along the way -- and I was now into the home stretch. I had just experienced some of the most harrowing urban construction driving in my life (Watford City area), and I was now on a clear, fast road. This is coming down Indian Hill, south of Williston, driving north toward the river. I was unable to keep up with the trucks ahead of me, and obeying the unwritten rule in the Bakken, "if you can see headlights in your rear view mirror you are not driving fast enough," I was doing what I could to keep traffic moving.
For folks on the east coast watching this, note that trucks coming up hill are in the fast lane; personal automobiles are in the slow lane. Also note: there are no barriers between 'uncoming" traffic lanes.
Also, for the environmentalists: note -- no flaring seen in this video, and it was five minutes of filming in the heart of the Bakken. Yes, Virginia, there are some areas in the Bakken where one does not see any flaring. Another area: anywhere near the national parks.
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