Pipeline constraints, refinery maintenance push Western Canadian crude oil prices lower
Planned maintenance at several large refineries in the Midwest has decreased the volume of crude oil processed in the region, which has resulted in lower prices of Western Canadian Select (WCS), a crude oil typically processed in the Midwest. WCS crude oil is typically priced lower than other crude oils because of differences in crude oil quality, but increasing production of WCS and pipeline capacity constraints in Western Canada have resulted in even lower prices of WCS compared with crude oil benchmarks such as Brent.
Tags: prices, Midwest, pipelines, liquid fuels, Canada, crude oil, oil/petroleum, refinery capacity
Average U.S. electricity customer interruptions totaled nearly 8 hours in 2017
Electric power for U.S. customers was interrupted for an average of 7.8 hours (470 minutes) in 2017, nearly double the average total duration of interruptions experienced in 2016. More major events such as hurricanes and winter storms occurred in 2017, and the total duration of interruptions caused by major events was longer. Excluding major events, the average duration of interruptions customers experienced was almost identical in 2016 and 2017, at about 2 hours in both years. In 2017, the average customer experienced 1.4 interruptions counting major events and 1.0 interruption excluding major events.
Tags: electricity, outages, utility
U.S. crude oil and natural gas proved reserves set new records in 2017
High prices and continued development of shale and tight resources drove proved reserves of both U.S. crude oil and natural gas to new records in 2017, according to EIA’s recently released U.S. Crude Oil and Natural Gas Proved Reserves report. Proved reserves of U.S. crude oil increased 19.5% from the end of 2016, reaching 39.2 billion barrels and surpassing the previous peak level of 39.0 billion barrels set in 1970. Proved reserves of natural gas increased 36.1% from the end of 2016 to reach 464.3 trillion cubic feet (Tcf) in 2017, surpassing the previous record of 388.8 Tcf set in 2014.
Tags: reserves, natural gas, liquid fuels, crude oil, oil/petroleum, map
Japan has restarted five nuclear power reactors in 2018
Republished 10:00 a.m. November 28 to correct the map legend.
Shikoku Electric Power Co. restarted the 890 megawatt (MW) Ikata-3 reactor in Japan’s Ehime Prefecture at the end of October, the fifth nuclear reactor in Japan to be restarted in 2018. Japan had suspended its nuclear fleet in 2013 for mandatory safety checks and upgrades following the 2011 Fukushima accident, and before 2018 only four reactors had been restarted.
High gasoline inventories help drive U.S. refining margins to five-year lows
Note: Reformulated blendstock for oxygenate blending (RBOB) is unfinished gasoline.
Flattening year-over-year growth in gasoline demand in the United States, combined with high levels of refinery output, have contributed to low or negative motor gasoline refining margins for refiners along the East and Gulf Coasts. Gasoline refining margins—the difference between the spot price of gasoline and the Brent crude oil spot price—have been on a downward trend since August, and these margins have been at some of their lowest October and November levels in the past five years. At the same time, strong growth in distillate demand has driven increased distillate prices and refining margins.
New projects expected to reverse Gulf of Mexico natural gas production declines
Natural gas production in the U.S. Federal Gulf of Mexico (GOM) has been declining for nearly two decades. However, 10 new natural gas production fields are expected to start producing natural gas in 2018 and another 8 are expected to start producing in 2019, according to information reported to the U.S. Department of Interior’s Bureau of Safety and Environmental Enforcement. These new field starts may slow or reverse the long-term decline in GOM production. The 16 projects starting in 2018 and 2019 have a combined natural gas resource estimate of about 836 billion cubic feet.
U.S. average gasoline prices this Thanksgiving are higher than the previous three years
Heading into the Thanksgiving holiday weekend, U.S. retail regular-grade gasoline averaged $2.61 per gallon (gal), up 4 cents/gal from the same time last year. This year marks the highest gasoline price for the Monday before the Thanksgiving holiday weekend since 2014.
Tags: prices, gasoline, liquid fuels
Thanksgiving and Black Friday have unique electricity demand patterns
Hourly electricity usage on Thanksgiving and the following day (Black Friday) tend to have different demand patterns from other weekdays. On a typical weekday in November, electricity usage tends to have two peaks: a morning peak and a slightly higher evening peak. On Thanksgiving, electricity demand tends to be highest late morning, as families cook meals and gather to celebrate the holiday. And because most businesses are closed, overall electricity demand on Thanksgiving Day tends to be lower.
Thanksgiving week: EIA data highlight how energy is used in the kitchen
Note: Households may use more than one fuel for cooking.
As Thanksgiving nears, households across the nation are firing up their stoves, cooktops, and ovens to prepare their feasts. According to the latest data from EIA’s Residential Energy Consumption Survey (RECS), electricity is the most common fuel used for cooking, with 74.9 million households (63%) using electricity in a stove, cooktop, or oven. The cooking fuel a household uses is often the same fuel it uses to heat the home: 59% of households reported using the same type of fuel for cooking as for main space heating.
The Wolfcamp play has been key to Permian Basin oil and natural gas production growth
Increased oil and natural gas development in the Wolfcamp play has helped drive overall crude oil and natural gas production growth in the Permian Basin during the past decade. Drilling and completion operations within the Wolfcamp play have been responsible for much of the crude oil and natural gas production growth in the Permian Basin since 2007. As of September 2018, the Wolfcamp accounted for about 1 million barrels of crude oil per day (b/d) and 4 billion cubic feet of natural gas per day (Bcf/d). Crude oil production in the Wolfcamp accounts for nearly one-third of total Permian crude oil production and more than one-third of Permian natural gas production.
Tags: production/supply, natural gas, tight oil, Texas, wells, liquid fuels, oil/petroleum, states, drilling, New Mexico, Permian, PADD 3, map