Texas Energy Report - Mobile



October 19, 2017

Texas Energy Report Closing Top Texas Energy Stocks

WTI down 0.64 to close at $51.40 - change 1.23%

Brent down 0.87 to close at $57.28 - change 1.50%

Natural gas up 0.03 at $2.89 - change 1.12%

---------------

CLOSING OIL & GAS STOCKS

Anadarko (APC) down 0.10 at 48.67 - change 0.21%

Apache (APA) down 0.50 at 42.15 - change 1.17%

Chevron (CVX) up 0.05 at 118.20 - change 0.04%

ConocoPhillips (COP) unchanged at 49.71 - change 0.00%

Devon (DVN) down 0.27 at 34.95 - change 0.77%

Energy Transfer (ETP) up 0.07 at 17.83 - change 0.39%

EOG Resources (EOG) down 0.90 at 95.76 - change 0.93%

ExxonMobil (XOM) down 0.02 at 82.74 - change 0.02%

Halcon (HK) up 0.16 at 6.44 - change 2.55%

Marathon Oil Corp. (MRO) down 0.03 at 13.74 - change 0.22%

Noble Energy (NBL) down 0.51 at 27.37 - change 1.83%

Occidental Petroleum (OXY) up 0.21 at 64.84 - change 0.32%

Parsley Energy (PE) down 0.49 at 26.11 - change 1.84%

Phillips 66 (PSX) up 0.15 at 90.39 - change 0.17%

Pioneer Natural Resources (PXD) down 2.11 at 142.98 - change 1.45%

Valero (VLO) up 0.01 at 77.63 - change 0.02%

---------------

CLOSING TOP UTILITY STOCKS

American Electric Power (AEP) up 0.82 at 73.83 - change 1.12%

Calpine (CPN) up 0.01 at 14.87 - change 0.07%

CenterPoint (CNP) up 0.17 at 29.75 - change 0.57%

Entergy (ETR) up 0.70 to close at 85.36 - change 0.83%

Exelon Corp. (EXC) up 0.15 at 39.77 - change 0.38%

NRG (NRG) down 0.41 at 25.54 - change 1.58%

Vistra Energy (VST) up 0.13 at 18.83 - change 0.70%

By Mike Shiloh


October 18, 2017

South Texas Oil Tank Fire Under Investigation

TCEQ and Railroad Commission investigators are looking for the cause of an oil tank explosion Tuesday in La Salle County, about 80 miles south of San Antonio.

Two oil field workers were taken to San Antonio hospitals by airlift with non-life-threatening injuries, according to the La Salle County Sheriff's Office, saying emergency crews arrived about 11 am to find "several" oil storage tanks engulfed in flames.

A new tank was being built at the Ledwig Ranch location, according to a spokesman for Carrizo Oil & Gas, Inc., based in Houston, which owns the tanks.

The fire investigation is being conducted by the sheriff's office along with the Railroad Commission of Texas and the Texas Commission on Environmental Quality.

By Mike Shiloh


October 18, 2017

Crude down 5.7 million barrels: EIA

Commercial crude oil inventories fell by 5.7 million barrels last week, according to Wednesday figures from the US Energy Information Administration, when compared to the previous week.

S&P analysts had expected a crude drawdown of 3.9 million barrels.

The Cushing, OK oil storage hub was up 202,000 barrels.

Gasoline inventories were up by 900,000 barrels, and distillate fuel was up by more thanĀ  500,000 barrels.

US refineries were operating at 84.5% of capacity, with inputs averaging more than 15 million barrels a day.

And crude oil imports were averaging 7.4 million barrels per day.

Supplies are about 21% higher than the five-year average even though oil exports continue to rise.

The Wednesday EIA figures conflict slightly with American Petroleum Institute figures released Tuesday, in which API reported a huge draw on crude oil of more than 7 million barrels last week, with a build in gasoline inventories of nearly 2 million barrels and a drop in Cushing supplies of 151,000 barrels.

By Mike Shiloh


October 17, 2017

Environmentalists, Some Locals Come Out Against KM Pipeline Proposal

Environmentalists and some officials are opposing a planned shift in the more than 70-year-old Tennessee Gas Pipeline.

The Federal Energy Regulatory Commission has already approved the pipeline's parent company, Houston-based Kinder Morgan's, request to sell the pipeline to another KM subsidiary, Utica Marcellus Texas Pipeline.

The line change was proposed more than two years ago to cease distribution of natural gas along the 964 miles pipeline that runs from Louisiana to Ohio and replace it with natural gas liquids (NGLs), reversing the flow from Ohio to Louisiana.

But along the route, the Kentucky Environmental Foundation has come out against the pipeline plan, with Program Director Craig Williams, saying "anyone who knows the basic principles of physics will realize it takes more pressure to move liquids than gas."

He cast doubt that the pipeline in its current condition can handle it.

Also on the pipeline route, Madison County, Kentucky, County Judge Reagan Taylor has questioned the ability of the pipeline to handle the weight of NGLs, quoted in the Richmond Register as calling the risks "numerous."

By Mike Shiloh


October 17, 2017

PUC Okays Oncor-Sharyland Asset Swap

The Texas Public Utility Commission has okayed a planned $400 million asset swap between Oncor and Sharyland Utilities.

Under the agreement, Oncor Electric Delivery Co. LLC will gain about 54,000 new customers and continue to maintain 122,000 miles of transmission and distribution lines.

Sharyland Distribution & Transmission Services LLC will gain 258 miles of 345 kV transmission lines in west and central Texas from Oncor.

The transaction is expected to close by the end of the year, with the electrical control transition expected to take up to six months.

As a result of the agreement, Sharyland's customers are expected to see a considerable drop in their electricity rates, which were considered to have been exceedingly high.

When the agreement was announced in July, State Senator Kel Seliger called it "an important development in providing relief to the exorbitant rates Sharyland customers have experienced."

And State Representative Drew Darby, in the Midland Reporter-Telegram, called it "welcome news for our constituents with savings on the horizon, and I’m grateful for Oncor’s progress here."

By Mike Shiloh


October 17, 2017

California Energy Committee Resists NRG Power Plant Plan

A two-member committee has recommended that the California Energy Commission oppose the construction of a new gas-fired power plant that's being developed by Houston's NRG Energy.

In what the committee acknowledges as an unusual move, they recommended the state commission deny approval of the plant to be built in Oxnard, a suburb of Los Angeles, because the plant would not meet local and state regulations.

In a statement, NRG said it's confident that the proposed $300 million plant (that would generate 262 MW) could receive regulatory approval and would make a good replacement for two units of the Mandalay Generating Station in Oxnard, which are being phased out.

Environmentalists have said the gas-fired plant could have negative effects on air quality, pushing for renewable energy instead.

NRG added that it "favors California’s move to a carbon-free electrical grid, but remains concerned about local reliability during the transition.”

By Mike Shiloh


October 17, 2017

Targa Joins With Blackstone, KM in Pipeline Ventures

Targa Resources has a new joint venture agreement to sell a 25% interest in the Grand Prix Pipeline to funds managed by Blackstone Energy Partners.

The Grand Prix, with completion expected by the second quarter of 2019, is intended to move 300,000 barrels per day of natural gas liquids (NGL) from the Permian Basin to Mont Bevieu, east of Houston.

Houston-based Targa has also signed a letter of intent with Kinder Morgan Texas Pipeline for Targa to own a 25% interest in the proposed Gulf Coast Express pipeline, which is expected to provide NGL from the Permian Basin to Gulf Coast markets.

Once completed in 2019, the Gulf Coast Express will be a new 300,000 barrel per day common carrier NGL pipeline from the Permian Basin to Mont Belvieu, Texas.

By Mike Shiloh


October 17, 2017

Chaparral Goes All In On STACK

Chaparral Energy Inc. is exiting Texas to go all-STACK.

The Oklahoma City-based company said it's sold its North Burbank and Texas Panhandle EOR interests for $170 million, making Chaparral what it now calls a "pure play STACK operator."

Proceeds are expected to pay down debt, "increase liquidity and strengthen our already strong balance sheet," according to CEO Earl Reynolds.

"The sale will also materially lower our overall total operating cost structure, which we view as critical in this volatile commodity price environment.”

The deal is expected to close next month.

Chaparral did not name the buyer, but Oil & Gas Investor said Monday that U.S. Securities and Exchange Commission documents list the purchaser as Perdure Petroleum LLC, a Delaware company.

By Mike Shiloh


October 17, 2017

Gulf Oil Spill May Be Largest Since Deepwater Horizon

It turns out that a Gulf of Mexico oil spill that occurred last week may be the largest since the 2010 "Deepwater Horizon" spill.

The Delta House floating production facility about 40 miles (64 kilometers) southeast of Venice, Louisiana, released 7,950 to 9,350 barrels of oil from early Wednesday to Thursday morning, according to closely held operatorĀ LLOG Exploration of Lafayette, Louisiana, Bloomberg reports.

This spill may be large, but it’s a fraction of the millions of barrels spilled in the 2010 incident.

Yet data from the US Bureau of Safety and Environmental Enforcement indicate this may be the largest spill in more than seven years.

By Mike Shiloh


October 16, 2017

Another Conservative Group Objects to Perry's Power Plan: The Hill

An analyst for the American Action Forum (AAF) said the proposal, announced this month by Energy Secretary Rick Perry, aims to address a "real problem" with "not the best solution."

Philip Rossetti, an AAF data analyst, said the plan "does not promote a policy that would necessarily achieve" a more stable electricity system, and instead would "arbitrarily value nuclear and coal power above their market rates," he was quoted as saying in The Hill.

"The only effect of the [proposal] is to set an arbitrary target of on-site fuel requirements that values coal or nuclear power, regardless of if those sources are able to provide resiliency and reliability at least cost," Rossetti's analysis says.

Perry's proposal has run into headwinds since he unveiled it earlier this month.

The Institute for Energy Research, an energy think tank whose political side endorsed Trump, last week called the plan "excessive and unnecessarily distortive."

By The Hill


October 16, 2017

US Electricity Production Mix Forecast: 2026

Source: BMI Research

By Mike Shiloh


October 16, 2017

Wind could surpass coal by almost 10,000MW by end of next year in ERCOT: UT Austin Energy Institute

Wind capacity is estimated to overtake coal capacity in ERCOT given recent retirement announcements and planned additions; from Dr. Joshua Rhodes, research fellow at UT Austin’s Energy Institute

By Mike Shiloh