API-MN supports passage of bill focused on protecting critical energy infrastructure

Category : News

3/17/2019

ST. PAUL — API’s Minnesota Petroleum Council Director Erin Roth released the following statement applauding the passage of SF 2011, an important bill focused on protecting critical energy infrastructure in Minnesota following the recent attempts of sabotage on Line 3.

“Late Friday, the Minnesota Senate Judiciary and Public Finance Committee recognized, with no opposition votes, the need to be proactive in an attempt to hopefully deter those persons who want to cause future damage and interrupt oil pipeline operations in Minnesota from attempting these crimes,” said Roth.

“The natural gas and oil industry takes sabotage attempts of pipelines extremely seriously, as the safety of our communities, the environment, and our workers is our number one priority. In addition, we also want to ensure that there is no service interruption to those who rely on reliable and affordable energy to heat their homes.

“The recent incidents in northern Minnesota where out of state perpetrators attempted to disrupt Enbridge Line 3 operations shows that this is a real threat to pipeline operations in Minnesota as we move closer to getting the Enbridge Line 3 Replacement Project constructed.

“We are optimistic about this important step in the right direction and continue to work on the bill with the MN Building Trades who build and modernize our infrastructure to make sure our operations are safe around the clock. We strongly encourage the Minnesota House to follow suit and pass this important piece of legislation.”

The Minnesota Petroleum Council is a division of API, which represents all segments of America’s natural gas and oil industry. Its nearly 620 members include large integrated companies, as well as exploration and production, refining, marketing, pipeline, and marine businesses, and service and supply firms. They provide most of the nation’s energy and are backed by a growing grassroots movement of more than 45 million Americans.


Texas, Alaska viewpoints stress growth and innovation at final day of CERAWeek

Category : News

By Kurt Abraham, Editor-in-Chief on 3/17/2019

null

United State Senator for Texas John Cornyn. Photo: The Senator’s Facebook page.

Common themes of bountiful resources and expanding oil and gas production were sounded by a Texas senator and the Alaskan governor on the final day, Friday March 15, of the five-day CERAWeek conference in Houston. Sen. John Cornyn (Rep. – Texas) and Gov. Mike Dunleavy (Rep. – Alaska) expressed similar sentiments that their respective states can expand output and boost their economies while doing it in an environmentally sustainable manner that includes reducing emissions.

During his mid-morning conversation with CERA (Cambridge Energy Research Associates) founder Daniel Yergin, Cornyn said, “I keep wondering how much longer the Permian basin can continue to produce so much energy, but the energy companies that continue to operate there continue to be so innovative, and increasingly efficient. Even with relatively low oil prices, they’re still able to make a profit, and that’s a good thing. And, as a result of lifting the export ban on petroleum a couple of years ago, we’re able to sell that oil across the globe. To me, it’s not just a matter of jobs at home, it’s a matter of geopolitics, because we’ve seen where Mr. Putin wants to be the sole supplier of energy to Europe. I think it’s better for our friends and allies to have other choices. So, Texas continues to be an innovator, where people have gotten more and more efficient, and much more effective. It’s been not only a blessing for us here, but also for the country, and I would argue for the world.”

Asked by Yergin what the biggest political threat is to the current energy renaissance, Cornyn replied, “It’s government. It really is—it is this attitude that somehow, all of our nation’s problems can be solved in Washington D.C. It’s just not true….”

At one point in the conversation, Yergin asked Cornyn what he thought of the “Green New Deal” being pushed by the extreme left portion of the Democratic Party. Feigning surprise, Cornyn replied, “I’m shocked that you would raise that.” But turning more serious, Cornyn replied, “I think it shows that we have a lot of work to do. Obviously, there’s been a lot of concerns raised in the political class about climate change, and some people think that this is the single-most urgent issue for us to address. I can think of more urgent issues, like nuclear weapons, but having said that, we’re all concerned about the environment. The real question is how do you deal with the concerns about the environment, and we’ve seen the debate over coal in our energy mix. In Texas, we are truly an all-of-the-above state, and we generate the most electricity from renewable sources of any state. We’re not just an oil-and-gas state, although we do that a lot, and we do it well, and thank goodness for that.

“But I think, he continued, “it’s more a question of, are we going to turn over control of the economy to Washington, to the political class, in a sort of command-and-control form, or are we going to rely on what has brought us to today, which is a country of innovators, and a sector of the economy that’s not just about energy. I’m struck every time that I come to CERAWeek, that this is like a technology conference, as much as it is an energy conference. So, I think there’s a lot of exciting things being done to curb emissions.” Asked how he would vote on the Green New Deal when it comes up for a vote in the Senate, Cornyn joked, “I’m still thinking about that……but no, I’m going to have to vote against that. In some ways, it’s a proposed solution in search of a problem.”

Commenting on the new batch of young, ultra-left legislators in Congress, Cornyn observed, “As Winston Churchill once said, ‘the problem with humankind is that we are unteachable.’ And we forget the lessons that previous generations may have learned, whether it’s about the evils of socialism or some of the experiences that we’ve had that we should have learned from, but have to be reminded about or re-live those same lessons.

For his part, Dunleavy said that he believes Alaska is on the verge of an oil and gas production “renaissance.” “It started several years ago,” observed Dunleavy. “We were fortunate to have several corporations up in Alaska, like ExxonMobil, BP, Eni and ConocoPhillips. We also have had some smaller operators, like Bill Armstrong, who has had some vision in exploration. So, there is a renaissance up there, and there’s still millions of barrels of oil still yet to be produced.”

On the subject of shale, Dunleavy said that Alaska “has some potential for shale oil, and there’s lots of (sites that would be prospective), but right now, the focus is mostly on conventional plays” that operators already are developing. He also mentioned that the state is still looking for ways to monetize the vast amounts of natural gas that are currently stranded.

Asked by Yergin what the minimum level of throughput is, that’s required to operate the Trans-Alaska Pipeline economically, Dunleavy said, “Some have said 250,000 bopd, although the pipeline is designed to carry 2 MMbopd. So, it’s important to fill it right now, and there’s some technological work that’s continually being done, to make sure that the oil flows. But with the new oil that we’re anticipating, where we’re expecting to put online 200,000 to 300,000 bopd for the next several years, that will certainly add to the longevity of the pipeline.”


Açu Petróleo signs contract with Equinor for ship to ship in Port of Açu

Category : News

3/18/2019

null

Photo: Açu Petróleo two tankers.

RIO DE JANEIRO — Açu Petróleo (a partnership of Prumo Logística and Oiltanking) and Equinor signed a contract for oil transshipment services at the Petroleum Terminal (T-OIL), located in the Complex of Port of Açu, in the north of the state of Rio de Janeiro.

The contract lasts 36 months, from January 2020, for the relief of Equinor’s oil production from the Roncador field. This agreement allows Equinor to operate, through class Suezmax and VLCC (very large crude carrier) vessels, most of its oil exports from Brazil through the Açu Petróleo terminal.

“Equinor is another customer who has chosen to use the modern and safety infrastructure of T-OIL. The addition of this important client will further strengthen our commitment to excellence and care for the environment in our operations”, said Victor Snabaitis Bomfim, Açu Petróleo’s CEO.

T-OIL

In T-OIL, the oil transshipment operation is performed by a world-class operator – Oiltanking, in an area sheltered by breakwater, enabling reliable and safe operation, with efficiency and reduction in final cost for the clients, which increases the competitiveness of the Brazilian oil. The operation relies on the two ships docked at the breakwater, both surrounded by containment barriers, which minimizes the risk of impact to the environment.

The terminal has the capacity to perform three oil transshipment operations simultaneously and is licensed to move up to 1.2 MMbopd.

With 82 ft (25 m) of depth, T-OIL is the only Brazilian private terminal with capacity to receive VLCC class ships. VLCC class oil tankers are among the largest in the world, with a storage capacity of up to 2 MMbopd.