- Market Focus
- ExxonMobil Divests US$3.9-Billion Stake in Japanese Downstream Operations
- Apples and Lemons – All Earnings Not Equal
- Bentek Energy: Combined Crude Output in U.S., Canada to Increase 36% by 2016
- IEA: ‘Economic Weakness’ Trimming 1Q-2012 Global Refinery Runs
- Baker Institute Summit Focuses on U.S. Energy Independence
- Operations
- Strikes Averted at 69 U.S. Refineries
- NPRA Marks New Era; Officially Becomes AFPM
- Downstream Logistics: Pertamina Tendering US$450-Million Terminal to Store 25 Million Barrels
- U.S. Energy Independence ‘Achievable’ by 2027 – Energy Executives
- Compliance Issues
- Federal Judge Denies CARB Motion to Reinstate LCFS
- An Energy Concordance of the 2012 U.S. State of the Union Address
- AFPM: Government Must Support Oil, Gas Industries to Create More Jobs
- Automakers to U.S. EPA: CAFE/CO2 Rule Needs Mid-Term Review
- China Delaying Euro-4 Fuel Sulfur Limits
- AFPM to U.S. EPA: Waive 2011 Cellulosic Biofuel Mandates
- Project Updates
- Africa
- Asia
- Europe and CIS
- Latin America
- Middle East
- North America
Operations
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Strikes Averted at 69 U.S. Refineries
At close to the last minute before the former agreement was set to expire, officials with the United Steelworkers (USW) union on February 1 announced a tentative deal for a new three-year agreement that avoids strikes by member workers employed in U.S. refineries.
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NPRA Marks New Era; Officially Becomes AFPM
On January 25, the National Petrochemical & Refiners Association (NPRA) began operations under its new name, the American Fuel & Petrochemical Manufacturers (AFPM). The organization also launched a new logo and organizational website to coincide with the new moniker.
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Downstream Logistics: Pertamina Tendering US$450-Million Terminal to Store 25 Million Barrels
PT Pertamina, the state petroleum company of Indonesia, announced intentions to build a 25- million-barrel petroleum storage terminal described as a “centralized crude terminal” in Lawe-Lawe, East Kalimantan.
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U.S. Energy Independence ‘Achievable’ by 2027 – Energy Executives
Most energy executives believe the U.S. can achieve energy independence within the next 15 years, so says a new research study from the CIT Group, Inc., in association with Forbes Insight. But the same executives also express concern that the current U.S. regulatory environment – along with global financial woes and opposition to fracking – could dash that promise.
Technology
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GE Launches Micro-LNG Plant for Distributed-Transportation Markets
GE Oil & Gas announced the development of a Micro LNG integrated plant that meets the small-scale liquefied natural gas (LNG) requirements of powering remote industrial and residential locations and fueling motor vehicles. Using LNG as a substitute for diesel or fuel oil can reduce combustion emissions up to 25%, according to GE.
Feature
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Buyers Market Emerges for Refineries, Courtesy of Insolvent Petroplus and Others
The potential for bargain buyouts of European refining assets in distress has attracted numerous potential bidders, according to numerous reports after Petroplus Holdings AG’s January announcements that insolvency proceedings had begun in the refinery host countries of France, Germany, U.K., Belgium and Switzerland. The refineries in the U.S. and elsewhere around the Atlantic Basin either on sale or already idled in recent quarters magnify and complexify the opportunities.
Market Focus
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ExxonMobil Divests US$3.9-Billion Stake in Japanese Downstream Operations
On January 29, ExxonMobil Corp. and TonenGeneral Sekiyu K.K announced a US$3.9-billion agreement that will result in the restructuring of ExxonMobil’s downstream refining and fuel marketing holdings in Japan.
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Apples and Lemons – All Earnings Not Equal
Buoyed by recovering triple-digit oil prices in fourth-quarter (4Q) 2011, oil companies are among the market’s publicly traded firms now reporting their year end financial results. If past perception is indicative of future reception, the unequal view of profits posted by 4Q top performers in differing industries may well signal that a riskier tax policy environment exists for U.S. energy operations and investments, given recent news.
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Bentek Energy: Combined Crude Output in U.S., Canada to Increase 36% by 2016
Total U.S. and Canadian crude oil production is projected to reach a record high in 2016 of more than 12 million barrels per day (b/d) – outpacing U.S. demand growth – and overseas U.S. oil imports are projected to drop 41% by 2016 as they are pushed out by the new production, a collection of market reports show.
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IEA: ‘Economic Weakness’ Trimming 1Q-2012 Global Refinery Runs
The latest International Energy Agency (IEA) monthly Oil Market Report (released January 18) finds that a weak global economy and relatively mild winter weather mean that global refinery crude runs for first quarter 2012 are likely to dip by 170,000 barrels/day (b/d) from the prior IEA forecast, to a total 74.9 million b/d.
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Baker Institute Summit Focuses on U.S. Energy Independence
At the “North American Energy Resources Summit” held at Rice University’s Baker Institute of Public Policy in Houston on January 18, a pseudo-euphoric state prevailed over the triumph of technology used to unlock gas and oil from shale and tight sources to offer America greater energy security. The optimism at the summit was tempered by recognition of environmental opposition and the Obama administration’s denial of the long awaited permit for the Keystone pipeline expansion project.
Compliance Issues
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Federal Judge Denies CARB Motion to Reinstate LCFS
On January 23, Judge Lawrence J. O’Neill denied the California Air Resources Board’s (CARB) motion to stay the decision he issued on December 29, 2011, that had halted the enforcement of the California’s low-carbon fuel standard (LCFS) regulation because that regulation is unconstitutional.
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An Energy Concordance of the 2012 U.S. State of the Union Address
Repeating an analysis begun in 2011, Hart Energy’s Refinery Tracker (RT) has run a simple word search check for energy-related terms used within the prepared text of the 2012 State of the Union (SOTU) address by U.S. President Barack Obama on January 24. The contrasts of the 2012 SOTU with the 2011 SOTU show what a difference a year can make.
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AFPM: Government Must Support Oil, Gas Industries to Create More Jobs
In an effort to better describe its focus and membership, the National Petroleum & Refiners Association (NPRA) changed its name to the American Fuel & Petrochemical Manufacturers (AFPM).
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Automakers to U.S. EPA: CAFE/CO2 Rule Needs Mid-Term Review
The Alliance of Automobile Manufacturers (AAM) – whose members account for about 80% of U.S. auto sales – on January 17 told a U.S. Environmental Protection Agency (EPA) and U.S. National Highway Traffic Safety Administration (NHTSA) joint hearing in Detroit that the EPA/NHTSA proposed fuel-economy and vehicle carbon-dioxide (CO2) rules for 2017 through 2025 require a mid-term review.
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China Delaying Euro-4 Fuel Sulfur Limits
China’s Ministry of Environmental Protection (MEP) announced this month that it will delay “China-IV” (50 parts-per-million [ppm] sulfur limits) standards – equivalent to Euro-4 fuel standards – until July 2013.
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AFPM to U.S. EPA: Waive 2011 Cellulosic Biofuel Mandates
The American Fuel & Petrochemical Manufacturers (AFPM) (formerly National Petrochemical & Refiners Association, American Petroleum Institute (API) and the Western States Petroleum Association jointly filed a petition January 20 requesting that the U.S. Environmental Protection Agency (EPA) waive the 2011 cellulosic biofuel-volume mandate in its entirety, because it appears no cellulosic biofuel was actually produced last year.
Project Updates
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Africa
Two project updates result from the news in the Africa region.
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Asia
One quake-stricken Japanese refinery seen to start up a month ahead of schedule, and partners continue to cooperate on a massive project in China.
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Europe and CIS
Details have emerged on contracting arrangements for two European modernization projects.
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Latin America
An export-oriented refinery project in Ecuador will require lengthy shutdown.
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Middle East
News on projects in the Middle East shows no slowness to ongoing development.
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North America
Sinclair’s refinery upgrade and expansion project has been completed, according to reports.
