The Market And Energy Page, Part 1, T+46 -- April 15, 2018; British Columbia Issues Permit For KMI's Trans Mountain Pipeline

Breaking news! Breaking News! British Columbia issues permit for Trans Mountain pipeline; British Columbia heads to Ottawa! Wow! [Huge thank you to reader who sent met the link.] Here's the story, linked here:

• the $7.4-billion project requires 1,187 provincial permits: note -- that was not a typo -- the project requires 1,187 permits from British Columbia. I assume, the project requires a few permits from the province of Alberta; and, a few permits from the federal government (Ottawa)
• so, where do we stand on the 1,187 British Columbia permits -- making progress:
• 587 permit applications have been submitted 
• that means the company still needs to submit 600 more applications
• of the 587 permits the company has submitted:
• 201 have been approved
• 386 are under review
• the submitted permits must align with 37 conditions outlined in BC's environmental certificate and the 157 conditions detailed int he National Energy Board's approval 
• assumption: as the permit applications come in, I assume the BC provincial government can add more conditions, if necessary
• by the way, had Hillary been elected president, it doesn't take a rocket scientist ...

Mexico doing the same thing as British Columbia, from Argus Media --

Mexico's indigenous consultation process is the main risk factor for energy projects.

Companies looking to develop energy and infrastructure projects in Mexico are required to participate in an indigenous consultation process prior to applying for permits related to projects that could significantly impact an indigenous community.

The energy ministry, or when relevant the transport ministry, decides when a consultation may be required. This would include if a proposed natural gas pipeline or wind farm is likely to displace indigenous people from traditional or sacred land.

The indigenous consultation is not a complexity of project development only in Mexico. It applies in any country with an indigenous population, according to the International Labor Organization's Agreement 169. But two factors have converged in Mexico that are making the issue more urgent — the prospect of the first supreme court decision on the matter, and a flood of pending projects and investments flowing from the historic 2014 energy reform. 

Argus Media failed to mention a third factor that is converging: Mexico is about to elect a two-time loser, a far left politico that does not bod well for Mexico ... or the US.

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It never quits: Sempra Energy to build a $130 million liquid fuel terminal in Mexico. Data points:

• IEnova will construct the marine liquid fuels terminal -- remember, new restrictions on commercial marine fuel
• location: at the La Jovita Energy Hub, port city of Ensenada
• the terminal: will be known as Baja Refinados
• will commence operations 2H20
• will supply 1 million bbls (sic) of gasoline and diesel
• will allow Chevron to utilize 50% of the facility's storage and fuel capacity

FF: books $4.2 billion charge; restates earnings, as expected; data points:

• earnings to be released next Friday (April 20, 2018)
• shares down 1%, after close, after rising 2.4% during the day

ETP: holds binding open season for new pipeline; data points:

• diesel fuel pipeline
• will connect Hebert and Midland in Texas
• initial capacity: 30,000 bbls/day
• will come online by 3Q20

Disclaimer: this is not an investment site. Do not make any investment, financial, job, travel, or relationship decisions based on anything you read here or think you may have read here.
Dumb and dumber: most dumassed decision in the past two weeks?

• Trump says he wants the US out of Syrian "conflict" by the end of the year; sooner if possible
• Assad's answer: use chemical weapons

Dumb and dumber: the most dumassed decision after the Allies hit Syria?

• telling Trump his attack failed

Dumb and dumber: New Zealand's strategy to end global warming? Story here:

• halt immediately any new permits for offshore oil and gas exploration
• yeah, that will solve the "problem"
• mostly it will push future investment overseas
• but, I suppose, the hobbits are happy

Anadarko; completion design changes in the DJ -- from the Energent Group -- dramatically decreasing the amount of sand in DJ completion strategies?

• Anadarko’s original well design uses between 500 and 800 pounds of proppant per foot with a proppant per gallon water ratio above 0.50. The new well design averages near 250 pounds per foot and has a proppant per gallon water ratio below 0.25. 
• If those ratios are based on mass (weight), here's what I'm seeing in the Bakke:
• 9,000-ft laterals
• 10 million gallons of water
• 90% water (mass)
• 10% proppant (mass): generally large sand or mesh/large sand; very little ceraic being used in wells that I've looked at; some operators are using mix of large/medium/small sand
• 10 million lbs sand
• so, compared to Anadarko in DJ, the Bakken:
• 10 million lbs sand / 9,000 feet = 1,000 lbs of proppant / foot
• ratio of proppant per gallon water: 0.10

Disclaimer: I often misread things; I often "round" numbers; I make assumptions that are often incorrect or turn out to be incorrect later.

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Global Warming

In the 15th century, the Chinese sailed a fleet of ships north from China, up to the Arctic, to the North Pole, continues over the pole, and then south to the North American continent.

[In the 15th century, in Zheng He's era] the Chinese had no concept of the North Pole as the highest point of the earthly sphere. Accordingly, when they traveled north from China to the North American continent, traversing the North Pole (the great circle route), they believed the journey was always northward.

The modern geographic understanding is that the great circle route from China to North America runs north to the North Pole, then south to North America. This concept was unknown to the Chinese.

To the Ming Chinese, "in the northward extension from the Imperial Ming" means a place beyond the North Pole. This understanding is reflected in the 1418 world map, which shows a passage through the polar ice across the North Pole leading to America [the northward passage].

According to the Dutch meteorological office, there were three exceptionally warm winters in the 1420s, which could have melted the Arctic sea ice.

And there you have it. 

From 1434: The Year a Magnificent Chinese Fleet Sailed to Italy and Ignited the Renaissance. Gavin Menzies, c. 2008.