Natural gas production sets a record with biggest one-year increase
U.S. natural gas production had its biggest one-year increase on record in 2018, the U.S. Energy Information Administration reported last week.
Driven by now more than decade-old advancements in hydraulic fracturing technology, production increased by 10 billion cubic feet per day last year — an 11 percent increase from 2017 — to 101.3 billion cubic feet per day. That led to a more 50 percent gain in gas exports, through LNG tankers and pipelines.
The biggest gains came in Texas, where gas production grew to 24.1 billion cubic feet per day, just behind the Appalachian region’s production of 28.5 billion cubic feet per day.
Magellan Midstream extends capacity
Tulsa-based pipeline operator Magellan Midstream Partners announced it had launched a second open season to book more capacity along the western leg of the company’s refined products pipeline known as the South System.
The pipeline currently moves 100,000 barrels of gasoline per day, but as part of a project announced in 2018, that capacity will be expanded to 175,000 barrels per day.
Under the company’s second open season, that capacity could be increased up to 200,000 barrels per day, which translates to roughly 8.4 million gallons of gasoline per day.
The pipeline will allow more gasoline to move from Houston-area refineries to Abilene and then to El Paso where the system connects with other pipelines to destinations in New Mexico, Arizona and south of the border in Mexico.
Total enters Suriname following deal with Apache
French oil major Total is entering the South American nation of Suriname after entering into a joint venture for an offshore project with Houston exploration and production company Apache Corp.
The companies announced they had entered into a 50-50 joint venture agreement to explore and develop a 1.4 million-acre offshore lease known as Block 58 with water depths ranging from 300 to nearly 6,900 feet.
Under the deal, Apache will serve as the initial operator while Total agreed to pay the Houston company a bonus of $100 million. Total also agreed to pay its share of past costs for the project. After the first three wells, Total will take over as operator.
Schlumberger to join U.N. greenhouse gas effort
Schlumberger, the world’s largest oil field service company, plans to join a United Nations-sponsored program to reduce greenhouse gas emissions.
The company said it would join Science Based Targets, an emission reduction program sponsored by the U.N. Global Compact program, the London-based Carbon Disclosure Project, Washington, D.C.-based World Resources Institute and Switzerland-based World Wildlife Fund.
Under the program, participating companies assess their emissions make reduction goals that are in line with what climate scientists say is needed to meet the goals of the Paris Agreement, a global treaty signed in April 2016 to fight climate change.