Story: Deer Park, Texas
Something tells me there is more to this story at Hart Energy.
Issue:
- Houston, Texas, oil refinery: the 300,000 b/d Deer Park refinery
- joint ownership: Royal Dutch Shell / Mexican state oil company: Pemex
- RDS looking to becoming more green, ESG-focused: wants out of refinery business
- agrees to sell its stake in this Texas refinery to Pemex
- who sues to stop this incredibly reasonable business and ESG decision? Two coin-operated laundromats in Mt Vernon, NY
- a US District Court denied the laundromats' request to stop process
By the way, on another note, Pemex has said that all refined products from this refinery will be exported to Mexico. This seems to be a "closed Pemex" loop: Pemex oil shipped to Deer Park which just happens to be in the US; but all refined products are returned to Mexico.
Story: White House monitoring oil prices very closely; nice video clip.
Story: Keystone XL workaround -- Canada's oil sands exports to Asia reach record with new link. New link? Reversal of the nation's biggest pipeline:
Canada’s oil sands producers were able to export a record amount of crude to overseas markets thanks to a new link to the U.S. Gulf Coast.
The recent reversal of Marathon Pipe Line Inc.’s Capline pipeline is sending oil sands crude produced in landlocked Alberta to export terminals on Gulf Coast where it can be shipped to other countries. Exports to Asia were at their highest ever, with India the leading destination by far, followed by China and then South Korea, according to oil analytics firm Kpler. The development marks a sea change for Canada’s oil industry.
The country holds the third highest crude reserves in the world, but exports to markets beyond the U.S. have been limited due to a lack of infrastructure.
Canada has faced severe opposition from activists for building pipelines from the oil sands region to British Columbia’s Pacific Coast. Additionally, the Biden Administration last year blocked the Keystone XL pipeline, effectively shutting Canada’s crude out of the global market.
Shipments of heavy crude jumped to more than 266,000 barrels a day in December after averaging over 180,000 through the year, according to Kpler. Canadian crude exports from the U.S. Gulf Coast averaged just 25,000 barrels a day in 2018, before rising to average around 70,000 in both 2019 and 2020.
In October, overall Canadian shipments of oil to the U.S. jumped to more than 4 million barrels a day, highest volume since the start of the year thanks in part to the startup of a long-delayed Canadian pipeline.
Much, much more at the link. But shutting down the Keystone XL -- what a doofus.
Story: European energy crisis.
The Netherlands, this year, may have to double the amount of natural gas it pumps out of a basin subject to earthquakes. Residents angry. To Bloomberg paywall or direct to ABC News with no paywall. Yes, we're talking about the Groningen, a basin we've talked about many times before.
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Time For A Nap
It's only doing 100,000 bopd south, much less than the 1.2 MM bopd you see bandied about.
ReplyDeleteAlso, the limiter remains at the border crossing. Basically is just helping some oil get south from upper Midwest towards Gulf. But it's far from a Keystone replacement, much higher flow rate pipe and one that actually increases cross-border flow.
https://financialpost.com/commodities/energy/oil-gas/canadian-oil-producers-eye-new-pipeline-route-to-gulf-coast-as-marathon-reverses-capline-conduit
https://www.spglobal.com/platts/en/market-insights/latest-news/oil/010722-capline-pipeline-reversal-fully-online-with-extra-canadian-crude-capacity
What the Canadians really need is a major pipeline. And one that actually gets oil out of Alberta. Keystone XL would have done that. Transmountain expansion will do that, hopefully by end of next year. But they could use XL also. Lot of oil in the tar sands. And it is getting much lower prices because of the bottlenecks getting it out.
Capline is interesting, but not really significant in doing the key thing, actually flowing oil out of Canada. Capline is all internal to the US. And still relatively low flow.
We're on the same page.
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