Energy News Beat

A green energy company on Tuesday pulled the plug on two wind projects off the coast of New Jersey which were approved for an estimated $1 billion in taxpayer-funded subsidies by Democratic Gov. Phil Murphy and state lawmakers.

The Danish outfit Orsted cited high inflation, rising interest rates and supply chain issues as their reasons for scrapping its Ocean Wind 1 and 2 projects – both of which were buoyed by tax incentives included in President Biden’s so-called Inflation Reduction Act.

“Macroeconomic factors have changed dramatically over a short period of time, with high inflation, rising interest rates, and supply chain bottlenecks impacting our long-term capital investments,” Orsted Americas CEO David Hardy said in a statement.

“As a result, we have no choice but to cease development of Ocean Wind 1 and Ocean Wind 2. We are extremely disappointed to have to take this decision, particularly because New Jersey is poised to be a US and global hub for offshore wind energy.”

Murphy, a strong proponent of the project, fumed over Orsted’s announcement, calling the pullout “outrageous” amid the unprecedented accommodations granted by the Garden State to the foreign company.

“Today’s decision by Orsted to abandon its commitments to New Jersey is outrageous and calls into question the company’s credibility and competence,” Murphy said in a statement. “As recently as several weeks ago, the company made public statements regarding the viability and progress of the Ocean Wind 1 project.”

Murphy he would explore legal options regarding the abandoned Orsted project after the state worked hard to secure the funding.

“In recognition of the challenges inherent in large and complex projects, my Administration in partnership with legislative leadership insisted upon important protections that ensure New Jersey will receive $300 million to support the offshore wind sector should Orsted’s New Jersey projects fail to proceed,” he added.

“I have directed my Administration to review all legal rights and remedies and to take all necessary steps to ensure that Orsted fully and immediately honors its obligations.”

The failed development, which would have provided the state with its first offshore wind farm just 13 miles off the South Jersey coast, was expected to generate enough energy to power half a million homes.

In July, New Jersey legislators approved tax breaks for Orsted valued as high as $1 billion to keep the project moving forward  — a move Republicans, commercial fishermen and activists slammed as a generous subsidy for a potentially harmful environmental project.

In exchange for the handout, which allowed Orsted to pocket federal tax breaks it was initially required to give back to New Jersey ratepayers,  the company was required to place a $200 million guarantee into state coffers, which will ostensibly be returned to ratepayers now that the company has scrapped the project.

State Sen. Ed Durr (R-Gloucester) criticized the subsidy at the time, arguing that when Orsted first received approval to build the wind farms it “agreed to apply for and return to ratepayers any federal tax incentives that might become available to offset the higher costs that ratepayers are paying today for the development of wind energy.”

“Despite the deal they signed, Orsted is realizing that wind farm projects don’t make economic sense without major government subsidies, so now they’re looking for a huge handout at the expense of New Jersey utility customers,” he added.

The post Biden-backed wind power company cancels New Jersey projects despite $1B in subsidies appeared first on Energy News Beat.

 

Energy News Beat

Satellite images show the eastern gate of the GERD is fully open, despite objections from Egypt and Sudan over the infrastructure

The post Fifth filling of controversial dam coming up in Ethiopia – expert appeared first on Energy News Beat.

 

Energy News Beat

Loading…

ENB Top News 
ENB
Energy Dashboard
ENB Podcast
ENB Substack

The post Israel Rushes Warships To Red Sea After Yemeni Houthis Launch Ballistic Missile & Drones appeared first on Energy News Beat.

 

Energy News Beat

​

This article was produced in partnership with Planet Detroit.

A new community center in Detroit’s Jefferson Chalmers neighborhood is also a key part of the city’s climate strategy.

The Community Center at A. B. Ford Park is part of the first three networks of resiliency hubs on the eastside of Detroit. In case of climate emergencies like power outages, heat waves or floods, these facilities serve the residents of the community as a central hub for resources, distribution, shelter, internet access and a place to charge devices.

The new facility includes a 70-kilowatt solar array with a backup battery and generator. This system can provide up to 72 hours of power. Ryter Cooperative Industries, a Black-owned company, was the primary solar contractor, and the development project served as a training opportunity for local contractors to learn how to install solar arrays.

The parking lot is equipped with green stormwater infrastructure and lots of native plants. The Jefferson Chalmers neighborhood was hard hit with flooding in 2021. The Lenox Center, an existing building in the park that was a pioneering resource for disabled people in the 1960s, was demolished as part of the renovation project because it was vulnerable to flooding and would have required extensive renovations.

“This is our first community center in over 15 years in District 4,” Detroit Councilmember Latisha Johnson said during her remarks at a ribbon-cutting event on Oct. 19. “This community knows how important green stormwater infrastructure is to addressing and ensuring that we don’t continue to have problems with our combined sewer overflow system.”

The new $7.9 million community center — built on higher ground — has a welcome desk, a cozy living room and library with fireplace, a multipurpose classroom, a flexible space for indoor sports, exercise classes or parties, and a large community event and meeting space with lots of big windows to view the future landscaped park and Detroit River.

“My hope is that this center will serve as a place of empowerment where individuals can access educational programs, engage in recreational activities and build lasting connections with one another,” said Mary Sheffield, president of the Detroit City Council. “Hopefully it will serve as a sanctuary of growth where the potential of our youth and the wisdom of our elders can be nurtured and celebrated.”

Community members at a ribbon-cutting event on Oct. 19. Credit: Angela Lugo-Thomas

In the fall of 2024, with funding from the American Rescue Plan Act, the surrounding green space will be transformed into a new park for residents and visitors with playgrounds for different ages, picnic areas, outdoor fitness equipment, basketball court, pickleball court, walking paths, shelters and fishing area. There will be a meadow, new trees planted and a wetland for wildlife.

Over 200 community members from Jefferson Chalmers and District 4 were engaged during the design process for the park and the building.

Tammie Black, founder of the Manistique Community Treehouse, has led solar roof projects in Jefferson Chalmers that have helped 25 houses get solar power. And she hasn’t stopped there. She mentioned that plans are underway for a solar training house where people will learn how to implement solar.

“I am numb,” she said. “All of our dreams and everything that we wanted inside of this space is here,” Black told Planet Detroit. “We’re going to continue this effort throughout.”

William Dawkins IV grew up in Highland Park and is working at the new center as the rec leader. He hopes to be able to create programming for all of the ages who will visit the center. He spent time training at the Patton and Adams Butzel recreation centers.

At the ribbon-cutting, Dawkins pointed out the classroom area where attendees played bingo. Iconic Detroit dancer and model Fast Freddy — still going strong at 77 years old — led a hustle dance class in the large community room.

Frank Bach, who has lived a block away for 44 years, said enjoying the park taught him that “recreation is essential to physical health and to mental health.”

“This is a place people can go when the power is out. Not only when the power is out — it’s a place for people to convene just to be amongst other people,” said Jack Akinlosotu, director of the city of Detroit’s Office of Sustainability. “This project is essential to Detroit’s climate strategy.”

The post New community center provides Detroit neighborhood with a climate refuge appeared first on Energy News Beat.

 

Energy News Beat

The post Putin ridicules proposed Western screwdriver sanctions appeared first on Energy News Beat.

 

Energy News Beat

Oil Price

The U.S. gasoline crack spread – a leading refining profitability indicator – slumped in October to the lowest level in nearly three years amid seasonally weaker American gasoline demand and the switch to the cheaper winter-grade gasoline, the Energy Information Administration said on Wednesday.

In October, the crack spread, or the difference between the price of a wholesale petroleum product and the crude oil price, averaged 16 cents per gallon, the lowest monthly average since December 2020.

The crack spread between New York Harbor RBOB and Brent Crude hit a summer high on July 27 at 94 cents per gallon. The spread has since dropped for two consecutive months in August and September, ending the month of September at 17 cents/gal, per EIA data.

The decline continued in October, due to lower gasoline consumption and above-average U.S. gasoline production.

EIA estimates suggest that U.S. refinery runs this year were above average in September and were near average in October.

“Despite the low crack spreads, refineries have continued to produce gasoline at an average rate because the other products they produce alongside gasoline have remained sufficiently profitable to continue gasoline production despite low demand,” the administration said.

Meanwhile, the national average price of gasoline has dropped to the lowest since March, with further potential to drop by up to 20 cents by the end of the year, fuel savings platform GasBuddy said on Tuesday.

Seasonally weaker demand and the switch to cheaper winter-blend gasoline are pushing U.S. gasoline prices lower despite the potential for further spikes in case of a widening Hamas-Israel conflict in the Middle East.

According to GasBuddy, “At $3.44 per gallon, the national average price of gas now stands at its lowest since March 28, and is projected to drop another 10 to 20 cents by the end of the year, while drivers in 33 states can now find at least one gas station at $2.99/gal or lower.”

By Charles Kennedy for Oilprice.com

ENB Top News 
ENB
Energy Dashboard
ENB Podcast
ENB Substack

The post U.S. gasoline refining profits tumble as demand weakens appeared first on Energy News Beat.

 

Energy News Beat

Oil and Gas 360

Calgary, Alberta–(Newsfile Corp. – October 31, 2023) – Pine Cliff Energy Ltd. (TSX: PNE) (OTCQX: PIFYF) (“Pine Cliff” or the “Company“) is pleased to announce that it has entered into a definitive agreement (the “Agreement“) to offer to acquire all of the issued and outstanding common shares (the “Common Shares“) of Certus Oil & Gas Inc (“Certus“), a privately held oil and natural gas producer, for a cash purchase price of $100.0 million (the “Offer“).

The Offer will be funded through a combination of available cash and a new secured term debt facility (“Term Debt Facility“). The board of directors of both Pine Cliff and Certus have unanimously approved the Offer. The Offer is expected to close by the end of 2023, subject to certain customary conditions and regulatory approvals.

Acquisition Highlights

Pine Cliff expects the proposed acquisition of Certus (the “Acquisition”) will have the following benefits:

Expands Pine Cliff’s core operations into the Caroline area of Western-Central Alberta, adding production (September 2023) of approximately 5,300 Boe/d1 (49% liquids).
Adds an initially identified 31 gross (15.4 net) deep basin liquids rich natural gas and oil development locations2 that are expected to compete for capital in Pine Cliff’s annual spending program for the next several years.
Strengthens Pine Cliff’s operating netback3 through increased exposure to crude oil and natural gas liquids (“NGLs“) production.
Before-tax PDP4 reserve value of the acquired reserves at a 10% discount rate is $112.5 million based on externally estimated PDP reserves of 12.3 MMBoe5 effective July 1, 2023.
Based on September 2023 average production, the Certus assets are expected to generate net operating income6 of approximately $38.4 million in 2024 at strip pricing.
Pine Cliff’s pro forma base production decline rate is expected to remain less than 10%, ranking among the lowest for publicly traded Canadian upstream oil and gas companies.

Strategic Rationale

Since inception, Pine Cliff has grown by acquiring strategic, low decline assets through an ongoing commitment to providing reliable returns to its shareholders. The Acquisition is consistent with this strategy and is expected to improve Pine Cliff’s operating netback at current commodity prices by increasing its liquids exposure while adding future development locations that offer attractive economic returns. Funding the Acquisition without equity will result in accretion to per share metrics and is expected to increase the free funds flow3 generated by Pine Cliff at current commodity prices.

Since introducing a dividend in June 2022, Pine Cliff’s conservative balance sheet has helped backstop the monthly dividend payment, with cumulative dividends paid from adjusted funds flow3. The Company will continue with a prudent hedging program to support the dividend and debt repayment post-acquisition. Pine Cliff expects to issue annual guidance in the first quarter of 2024.

New Term Debt Facility

Pine Cliff has entered into a non-binding term sheet for a three-year Term Debt Facility provided by a private institutional investor (the “Lender“). The Company expects to enter into a binding commitment with the Lender concurrent with the closing of the Offer. The Term Debt Facility will be subject to interest of Canadian Prime Rate plus 3.65 percent and includes scheduled amortization with options for prepayment after twelve months.

Pine Cliff will maintain its current demand operating loan of $8.0 million with a Canadian chartered bank as part of its normal course of business.

Dividend

Pine Cliff has declared a regular monthly dividend of $0.01083 per common share to be paid November 30, 2023, to shareholders of record on November 15, 2023. The dividend is designated as an eligible dividend for Canadian income tax purposes.

Transaction Details

Under the Agreement, Pine Cliff has agreed to mail the Offer and accompanying take-over bid circular, notice of guaranteed delivery and letters of transmittal (collectively, the “Offer Documents“) to all registered shareholders of Certus and other persons who are entitled to receive these documents under applicable law. Concurrently, the board of directors of Certus will mail to shareholders a directors’ circular containing the unanimous recommendation of the board that shareholders accept and tender their Common Shares to the Offer.

In connection with the Offer, certain shareholders of Certus who collectively hold approximately 51% of the Common Shares, have entered into lock-up agreements with Pine Cliff agreeing to, among other things, deposit their Common Shares under the Offer.

As specified in further detail in the Offer Documents, the Agreement contains customary deal protections in favour of Pine Cliff for a transaction of this kind. Full details of the Offer will be set out in Offer Documents which will be mailed to shareholders and filed on Pine Cliff’s SEDAR+ profile at www.sedarplus.ca.

Advisors

Haywood Securities Inc and Paradigm Capital are both acting as financial advisors to Pine Cliff with respect to the Offer.

TPH&Co, the energy business of Perella Weinberg Partners, is acting as the strategic advisor to Pine Cliff with respect to the Offer.

Stifel Canada is acting as strategic advisor to Certus with respect to the Offer.

About Pine Cliff Energy

Pine Cliff is a natural gas focused company with a long-term view of creating shareholder value. Further information relating to Pine Cliff may be found on www.sedarplus.ca as well as on Pine Cliff’s website at www.pinecliffenergy.com.

Reader Advisories

Currency

All amounts in this news release are stated in Canadian dollars unless otherwise specified.

Notes to the Press Release

September estimated production comprised of approximately 51% conventional natural gas, 26% NGLs and 23% light and medium crude oil and condensate. Annual decline rate is estimated at 16%.
Estimated by Pine Cliff based on internal review. There is no certainty that Pine Cliff will drill all unbooked drilling locations and if drilled there is no certainty that such locations will result in additional oil and natural gas reserves, resources or production. The drilling locations on which Pine Cliff will actually drill wells, including the number and timing thereof is ultimately dependent upon the availability of funding, regulatory approvals, seasonal restrictions, oil and natural gas prices, costs, actual drilling results, additional reservoir information that is obtained and other factors.
See Non-GAAP Measures.
Reserves have been externally estimated by independent reserve evaluators, McDaniel & Associate Consultants Ltd. in accordance with National Instrument 51-101 – Standards of Disclosure of Oil and Gas Activities and the Canada Oil and Gas Evaluation Handbook with an effective date July 1, 2023 using the average forecast price and costs of McDaniel & Associate Consultants Ltd., GLJ Ltd and Sproule Associated Ltd. as of April 1, 2023 before income taxes.
July 1, 2023 PDP Reserves comprised of 49% conventional natural gas, 34% NGLs, 15% light and medium crude oil and 2% condensate.
Net operating income is calculated using expected revenue $77.9 million less royalties of $11.8 million, transportation costs of $2.5 million and operating expenses of $25.2 million, based on annualized September production of 5,304 Boe/d (51% conventional natural gas, 26% NGL’s and 23% light and medium crude oil and condensate) at October 26, 2023 strip prices of $102.60/Bbl  Edmonton light oil, $3.01/mcf AECO natural gas and US$0.725/C$.

Reserves Data

The reserves data set forth in this news release is based on estimates prepared by McDaniel & Associates in accordance with National Instrument 51-101 – Standards of Disclosure of Oil and Gas Activities and the Canada Oil and Gas Evaluation Handbook with an effective date July 1, 2023. There are numerous uncertainties inherent in estimating quantities of crude oil, natural gas and NGL reserves and the future cash flows attributed to such reserves. The reserve and associated cash flow information set forth above are estimates only. In general, estimates of economically recoverable crude oil, natural gas and NGL reserves and the future net cash flows therefrom are based upon a number of variable factors and assumptions, such as historical production from the properties, production rates, ultimate reserve recovery, timing and amount of capital expenditures, marketability of oil and natural gas, royalty rates, the assumed effects of regulation by governmental agencies and future operating costs, all of which may vary materially. For those reasons, estimates of the economically recoverable crude oil, NGL and natural gas reserves attributable to any particular group of properties, classification of such reserves based on risk of recovery and estimates of future net revenues associated with reserves prepared by different engineers, or by the same engineers at different times, may vary. Pine Cliff’s actual production, revenues, taxes and development and operating expenditures with respect to its reserves will vary from estimates thereof and such variations could be material.

BOE Equivalency

Natural gas liquids and oil volumes are recorded in barrels of oil (“Bbl“) and are converted to a thousand cubic feet equivalent (“Mcfe“) using a ratio of one (1) Bbl to six (6) thousand cubic feet. Natural gas volumes recorded in thousand cubic feet (“Mcf“) are converted to barrels of oil equivalent (“Boe“) using the ratio of six (6) thousand cubic feet to one (1) Bbl. This conversion ratio is based on energy equivalence primarily at the burner tip and does not represent a value equivalency at the wellhead. The terms Boe or Mcfe may be misleading, particularly if used in isolation.

Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of oil, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.

Non-GAAP and Other Financial Measures

This news release uses the terms “adjusted funds flow”, “free funds flow”, “net operating income” and “operating netback” which are not recognized under International Financial Reporting Standards (“IFRS“) and may not be comparable to similar measures presented by other companies. These measures should not be considered as an alternative to, or more meaningful than, IFRS measures including net income and cash provided by operating activities. The Company uses these measures to evaluate its performance, leverage and liquidity. Adjusted funds flow is a non-Generally Accepted Accounting Principles (“non-GAAP“) measure that represents the total of funds provided by operating activities, before adjusting for changes in non-cash working capital and decommissioning obligations settled. Free funds flow is a non-GAAP measure calculated as adjusted funds flow less decommissioning obligations settled and capital expenditures. Net operating income is a non-GAAP measure calculated as revenue before financial hedges less royalties, transportation costs and operating expenses. Operating netback is a non-GAAP measure calculated as net operating income divided by average daily production. Please refer to the annual report for additional details regarding non-GAAP measures and their calculations.

Cautionary Statements

This news release contains forward-looking information and statements (collectively, “forward-looking information”) within the meaning of applicable securities laws. The use of any of the words “forecast”, “expect”, “anticipate”, “continue”, “estimate”, “objective”, “ongoing”, “on track”, “may”, “will”, “project”, “should”, “believe”, “plans”, “intends” and similar expressions are intended to identify forward-looking information. More particularly and without limitation, this news release contains forward-looking information concerning Pine Cliff’s plans and other aspects of its anticipated future operations, management focus, objectives, strategies, financial, operating and production results and business opportunities, including the following: the completion of the Offer including the timing and terms thereof; the benefits of the Offer and the characteristics of the acquired assets including that the Offer is expected to be accretive to the Pine Cliff’s free funds flow and per share metrics in 2024, the anticipated net operating income to be generated from the acquired assets, and that Pine Cliff expects potential debt repayment in 2024 at current commodity prices. The forward-looking information is based on certain key expectations and assumptions made by Pine Cliff, including expectations and assumptions concerning the following: prevailing and future commodity prices and currency exchange rates; applicable royalty rates and tax laws; interest rates; future well production rates and reserve volumes; operating costs, the timing of receipt of regulatory approvals including in connection with the Offer; the performance of existing wells; the success obtained in drilling new wells; anticipated timing and results of capital expenditures; the sufficiency of budgeted capital expenditures in carrying out planned activities; the timing, location and extent of future drilling operations; the successful completion of the Offer and the benefits to be derived therefrom; the state of the economy and the exploration and production business; the availability and cost of financing, labour and services; and ability to market crude oil, natural gas and NGL successfully. Without limitation of the foregoing, future dividend payments, if any, and the level thereof is uncertain, as the Pine Cliff’s dividend policy and the funds available for the payment of dividends from time to time is dependent upon, among other things, free funds flow, financial requirements for the Pine Cliff’s operations and the execution of its development strategy, fluctuations in working capital and the timing and amount of capital expenditures, debt service requirements and other factors beyond the Pine Cliff’s control. Further, the ability of Pine Cliff to pay dividends is subject to applicable laws (including the satisfaction of the solvency test contained in applicable corporate legislation) and contractual restrictions contained in the instruments governing its indebtedness, including its credit facility.

Statements relating to “reserves” are also deemed to be forward looking information, as they involve the implied assessment, based on certain estimates and assumptions, that the reserves described exist in the quantities predicted or estimated and that the reserves can be profitably produced in the future.

All such forward-looking information is based on certain assumptions and analyses made by us in light of our experience and perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate in the circumstances. The risks, uncertainties and assumptions are difficult to predict and may affect operations, and may include, without limitation: foreign exchange fluctuations; equipment and labour shortages and inflationary costs; general economic conditions; industry conditions; changes in applicable environmental, taxation and other laws and regulations as well as how such laws and regulations are interpreted and enforced; the ability of oil and natural gas companies to raise capital; the effect of weather conditions on operations and facilities; the existence of operating risks; volatility of oil and natural gas prices; oil and gas product supply and demand; risks inherent in the ability to generate sufficient cash provided by operating activities to meet current and future obligations; increased competition; stock market volatility; opportunities available to or pursued by us; and other factors, many of which are beyond our control. The foregoing factors are not exhaustive.

Actual results, performance or achievements could differ materially from those expressed in, or implied by, this forward-looking information and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking information will transpire or occur, or if any of them do, what benefits will be derived there from. Except as required bylaw, Pine Cliff disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise.

Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could affect Pine Cliff, or its operations or financial results, are included in the Pine Cliff’s most recently filed Management’s Discussion and Analysis (See “Forward-Looking Statements” therein), Annual Information Form (See “Risk Factors” and “Forward-Looking Statements” therein) and other reports on file with applicable securities regulatory authorities and may be accessed through the SEDAR+ website (www.sedarplus.ca) or Pine Cliff’s website (www.pinecliffenergy.com).

The forward-looking information contained in this news release is made as of the date hereof and Pine Cliff undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless expressly required by applicable securities laws.

Certain Definitions:

MMBoe    millions barrels of oil equivalent

Boe/d      barrel of oil equivalent per day

PDP          proved developed producing

For further information, please contact:

Philip B. Hodge – President and CEOAlan MacDonald – CFO and Corporate SecretaryKristopher B. Zack – Vice President, Finance

Telephone: (403) 269-2289Fax: (403) 265-7488Email: [email protected]

The TSX does not accept responsibility for the accuracy of this release.

ENB Top News 
ENB
Energy Dashboard
ENB Podcast
ENB Substack

The post Pine Cliff Energy Ltd. announces strategic acquisition, new term debt facility and monthly dividend appeared first on Energy News Beat.

 

Energy News Beat

Weekly Crude Oil Storage as of October 27, 2023

U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) increased by 0.8 million barrels from the previous week.  At 421.9 million barrels, U.S. crude oil inventories are about 5% below the five year average for this time of year, according to the EIA crude oil and petroleum weekly storage data, reporting inventories as of October 27, 2023.

Summary of weekly petroleum data for the week ending October 27, 2023

U.S. crude oil refinery inputs averaged 15.3 million barrels per day during the week ending October 27, 2023, which was 62 thousand barrels per day more than the previous week’s average. Refineries operated at 85.4% of their operable capacity last week.

Gasoline production decreased last week, averaging 9.5 million barrels per day.
Distillate fuel production decreased last week, averaging 4.6 million barrels per day.

Imports

U.S. crude oil imports averaged 6.4 million barrels per day last week, increased by 412 thousand barrels per day from the previous week. Over the past four weeks, crude oil imports averaged about 6.2 million barrels per day, 1.4% more than the same four-week period last year.

Total motor gasoline imports (including both finished gasoline and gasoline blending components) last week averaged 557 thousand barrels per day, and distillate fuel imports averaged 71 thousand barrels per day.

Products inventories

Total motor gasoline inventories increased by 0.1 million barrels from last week and are about 2% above the five year average for this time of year.
Finished gasoline inventories increased while blending components inventories decreased last week.
Distillate fuel inventories decreased by 0.8 million barrels last week and are about 12% below the five year average for this time of year.
Propane/propylene inventories decreased by 1.2 million barrels from last week and are 16% above the five year average for this time of year.
Total commercial petroleum inventories decreased by 3.1 million barrels last week.

Products supplied

Total products supplied over the last four-week period averaged 20.4 million barrels per day, up by 0.5% from the same period last year. Over the past four weeks:

Motor gasoline product supplied averaged 8.8 million barrels per day, up by 1.6% from the same period last year.
Distillate fuel product supplied averaged 4.0 million barrels per day over the past four weeks, down by 4.5% from the same period last year.
Jet fuel product supplied was up 8.0% compared with the same four-week period last year.

ENB Top News 
ENB
Energy Dashboard
ENB Podcast
ENB Substack

The post U.S. crude oil inventories increase by 0.8 million barrels appeared first on Energy News Beat.

 

Energy News Beat

World Oil

(WO) – Zephyr Energy plc provided updates on its non-operated asset portfolio in the Williston basin, North Dakota, U.S. In December 2022, the company announced that it had acquired a working-interest in six recently spudded wells operated by Slawson Exploration Company. The working interests acquired range from 11% to 32%.

Zephyr’s management estimated the Wells to contain 2P reserves, net to Zephyr, of circa 550,000 Boe.

Following the recent completion of the associated production facilities, the company has been notified by Slawson that the wells are scheduled to be brought online Nov. 1, 2023.

The wells will provide a significant near-term production boost and are expected to generate substantial cashflows for the company, which can be reinvested into the development of its project in the Paradox basin, Utah, U.S., or into additional non-operated investment opportunities.

The post Zephyr Energy brings Williston basin wells online, boosting production appeared first on Energy News Beat.

 

Energy News Beat

Oil Price

The U.S. offshore wind industry is “fundamentally broken” and needs a reset, a clean energy executive at supermajor BP said at the FT Energy Transition summit on Wednesday.  But the regulatory and permitting environment for the industry can be fixed, Anja-Isabel Dotzenrath, head of Gas and Low Carbon Energy at BP, said on the conference, as carried by Reuters.

Currently, the U.S. regulatory environment is challenging for developers due to a lack of mechanisms to adjust for inflation, permitting issues, and a lag between the signing of the power purchase agreement and the construction of the projects, according to BP’s green energy boss.

BP itself booked a pre-tax impairment charge of $540 million in the third quarter related to U.S. offshore wind projects.

BP and Equinor’s filing to renegotiate the power purchase agreements associated with the Empire Wind 1 and 2 and Beacon Wind 1 wind farms off the coast of New York was rejected last month.

“Equinor and BP are assessing the impact of the decision on these projects and future development plans,” BP said.

Norway’s Equinor, which is BP’s partner in the ventures, recognized a $300 million impairment to its offshore wind projects on the US North East Coast following the rejection of petitions related to offtake agreements.

“Offshore wind projects on the US Northeast Coast are negatively impacted by cost inflation and supply chain constraints. New York Public Service Commission rejected price increase petitions from Equinor and other companies and Equinor is assessing the implications for its projects,” Equinor said in its Q3 results release last week.

Ørsted, the world’s biggest offshore wind developer, added insult to injury on Wednesday, saying it would cease the development of two offshore wind projects in the United States due to supply chain delays, higher interest rates, and changed project assumptions including tax credit monetization and the timing and likelihood of final construction permits.

The post U.S. offshore wind sector ‘fundamentally broken’ – BP exec appeared first on Energy News Beat.