Monday, August 28, 2017

Oil Traders Grapple With US Crude Conundrum


Oil traders are grappling with a conundrum.

U.S. crude oil inventories have fallen for eight consecutive weeks to the lowest level since the beginning of last year. The pace at which producers have been adding drilling rigs to boost output has slowed to a crawl. And crude demand in the U.S. from motorists driving off on their summer holidays has surpassed expectations.

All of these reasons would historically be supportive for prices. But instead the benchmark West Texas Intermediate (WTI) U.S. oil contract has slumped to its biggest discount to its international rival Brent since 2015, meaning many oil producers in the U.S. are earning about $4—or 8%—less per barrel than those operating in the North Sea or west Africa.

Behind this, analysts and traders say, is seemingly unstoppable U.S. oil production. Those betting the industry will continue ramping up output are—for now—firmly winning the biggest debate in the oil sector regarding just how much production, led by the shale revolution, can grow despite prices languishing below $50 a barrel.
http://www.oilandgasinvestor.com/Crude-shale-price-1653926

Italy's CONSOB Imposes Sanctions On Petrofac CEO

Italy's markets watchdog CONSOB has imposed sanctions on Petrofac Ltd. CEO Ayman Asfari, including a €300,000 (US$ 354,075) fine, in relation to dealing in shares of an Italian company, Petrofac said on Aug. 24.

The investigation by the Italian National Commission for Companies and the Stock Exchange (CONSOB) concerned a transaction made in 2012 involving the shares of a listed Italian company, Asfari said.

“The premise of CONSOB's case was that I met with an Italian executive who provided inside information. I can show irrefutable evidence that such a meeting never took place,” he said.

Asfari added that he did not receive a notification from CONSOB of the charges and therefore did not have the chance to defend himself.

Asfari informed Petrofac that he believed the decision to be wholly without merit and is determined to contest the decision and the process by which it was conducted to the fullest possible extent, Petrofac said.

The sanctions include a 12-month disqualification from taking up a management role with any Italian-listed company and an order confiscation property with a value of €385,000 (US$ 454,315).

Petrofac's Chairman, Rijnhard van Tets, said the board fully supported Asfari in his defense against the decision.

Petrofac is under investigation by Britain's Serious Fraud Office for its dealings with Monaco-based Unaoil, which Petrofac said it had engaged with primarily in Kazakhstan to provide local consultancy services from 2002 to 2009.

Petrofac's shares traded down 2.3% at 429.7 pence (US$ 5.51) at 6:44 a.m. CDT following the statement made by Petrofac.

Sunday, August 27, 2017

Cairn Oil and Gas hires 150 students from premier institutes

New Delhi: Cairn Oil and Gas, the petroleum arm of London-listed metals and mining major Vedanta announced it has recruited over 150 students from Indian Institute of Technology (IITs) and Indian Institute of Management (IIMs) through its campus hiring program.

The campus recruitment of over 150 students is a significant jump as compared to average recruitment of 25 engineering and management graduates hired every year, the company said in a release issued today.

The recruitment was done under the campus hiring programme of the company named Barrels of Learning Per Day (BOLD). According to the release, BOLD allows young recruits to experience various technical and management functions for two years, before they graduate to dedicated functional and technical roles.

These carefully designed rotations enable a steady growth of leadership pipeline for technical, operating and enabling functions. Every
recruit in the program is assigned a senior mentor who provides much-needed anchorage and helps the person assimilate with people and teams all across, it said. The two years of on-the-job functional learning is complemented with a suite of training and development interventions to develop rounded and high potential oil and gas professionals.

“As Cairn marches ahead with this ambitious plan, it will increasingly need diverse and skilled workforce of engineers, geologists, technicians, commercial and leadership talent. Its ability to hire young talent from national campuses reinforces its stature as an Employer of Choice for young potential recruits and also reaffirms its commitment to deliver on nation’s pressing priorities as India cruises towards energy self-independence,” Cairn Oil and Gas said.

According to the company, this year’s campus drive focused on improving diversity ratio across gender, nationalities and geographies in the company.

Orphan oil and gas wells adopted by rookie Alberta energy company founder

CALGARY — Where some see only a jumble of rusted pipes and black tanks jutting from a weed-infested yard in a prairie grain field, Tyler Visscher sees opportunity.

The 31-year-old Red Deer, Alta., electrician is trying to build an oil and gas company the hard way, by scouring the Orphan Well Association's list of parentless wells in Alberta in hopes of picking out a few winners.

He "adopted" his first well two years ago — bought it, actually — and is now wading through a "whack of paperwork" to buy a second.

"Oh, yeah, it's a gamble for sure," says the budding oilman. "With everything, there's a risk, right?"

The crash in commodity prices of the past three years has been linked to a dramatic increase in orphans — oil and gas wells assigned to the OWA because there's no owner financially able to seal the wells, remove equipment and restore the land when their productive life ends.

In the fiscal year ended March 31, the OWA had 1,391 wells on its list designated for abandonment, up from 768 a year earlier.

As of July 6, the list had climbed to 1,438.

That number doesn't include 1,380 wells the regulator assigned to the OWA in an unprecedented move early this year after owner Lexin Resources was accused of ignoring AER orders and regulations. The former Lexin assets are being marketed as a package by its receiver in a process expected to wrap up this fall.

Many assume orphan wells and related assets are all liability with no value but the Alberta Energy Regulator says that's not the case.

"Recently, many wells, pipelines and facilities have been deemed orphans because their owners have gone bankrupt, despite the fact that they are still capable of producing, transporting or processing oil or gas," said AER spokesman Ryan Bartlett.

In an effort to place those assets with responsible new owners, the AER has provided a database on the OWA website that gives orphan well locations and history — information designed to attract potential buyers.

"It's very time-consuming because you have to scour these wells and you have to figure out, 'OK, why is this well on the list?'" said Visscher.

"Was it bad management and the company went bankrupt and now this well is in the orphan well list? Or is the well a poor well? Was it not completed properly? Was it not operated properly? You have to go through, kinda like a detective."

To take over the well's production — and responsibility for its environmental liability — the buyer must acquire the underground mineral rights and surface access rights before applying for a licence transfer from the AER.

Not many bother. The AER says the number of licence transfer applications it has handled has increased from four in 2013 to 20 in 2016.

Visscher said it took several months to buy his first well east of Calgary. And many hours of work to clean it up after years of neglect.

The Crown lease had been returned to the province so he nominated it for public auction and filed the successful bid to buy the mineral rights. He then negotiated an agreement with the landowner, a farmer who hadn't been paid rent by the previous insolvent owner in four or five years, to gain surface access.

To complete the licence transfer, he then had to pay a $10,000 fee to the OWA. To ensure the wellsite will eventually be reclaimed, he has also had to post a $100,000 bond with the AER.

In all, he says it cost about $50,000 to buy the well which is daily producing some 90,000 cubic feet of natural gas (enough to heat an average single detached home in Canada for one year) plus two barrels of oil. He figures the decade-old well originally cost about $1 million to drill.

Visscher has equipped the well with solar-powered pumps and automated controls designed by his electrical company, Blue Star Electrical, and is using it to demonstrate those products for potential buyers.

He said he's excited about his second well which is awaiting AER licence transfer. It comes with about 260 hectares of Crown drilling rights which means he will have room to drill more wells if he can find the financial backing to do so.

OWA chairman Brad Herald says "the clock is ticking" for entrepreneurs like Visscher who want to buy orphan wells because a big acceleration in well site cleanups is expected to start this fall.

That's when a $30-million grant announced in the last federal budget is expected to arrive, allowing the province to go ahead with its plan to offer $235 million in loans for OWA projects.

OWA's annual spending is usually restricted to its $30 million per year industry levy.

Saturday, August 26, 2017

Oil Prices Rise As US Rigs, Refineries Brace For Hurricane

Oil prices rose on Aug. 25 as the U.S. petroleum industry braced for Hurricane Harvey, which may become the biggest storm to hit the U.S. mainland in more than a decade.

Harvey became a category 2 storm as it crossed the Gulf of Mexico with winds of 105 mph (169 kph), 355 km (220 miles) off Corpus Christi, Texas, the National Hurricane Center said. The hurricane is forecast to make landfall late Aug. 25 or early Aug. 26 between Corpus Christi and Houston, both important oil refining centers.

U.S. light crude, also known as West Texas Intermediate or WTI, was up 30 cents at $47.73 a barrel by 1015 GMT. Brent crude was 30 cents higher at $52.34.

Energy companies have pulled workers from offshore oil platforms and halted onshore drilling in south Texas. Just under 10% of offshore U.S. Gulf of Mexico crude output capacity and nearly 15% of natural gas production had been halted by midday on Aug. 24, government data showed.

“Damage and flooding to refineries and shale fields, disrupted production in the Gulf of Mexico and infrastructure damage are unlikely to be bearish for WTI,” said Jeffrey Halley, market analyst at brokerage OANDA.

U.S. gasoline prices have risen almost 10% since Wednesday to a high of $1.74 a gallon, their loftiest since April as refiners shut down in preparation for the storm.

The Port of Corpus Christi, Texas, was closed to vessel traffic, a spokeswoman for the city's Port Authority said.

Oil refineries in the city run by Citgo Petroleum, Valero Energy Corp and Flint Hills Resources also began shutting down.

Beyond the storm’s potential impact on the oil industry, crude remains in ample supply globally despite efforts led by OPEC to hold back production in order to prop up prices.

OPEC, together with non-OPEC producers including Russia, has pledged to cut output by 1.8 million barrels per day (MMbbl/d) this year and in the first quarter of 2018. But not all producers have kept to their pledges and supplies remain high.

A joint OPEC, non-OPEC monitoring ministerial committee said on Aug. 24 that an extension to the supply-cut pact beyond March was possible, though not yet decided.

Part of the reason for the crude glut has been rising U.S. production, which has jumped by 13% since mid-2016 to 9.53 MMbbl/d, close to its 9.61 MMbbl/d record from June 2015.

17 killed as bus carrying construction crew drives off pier


MOSCOW -- A bus carrying construction workers drove off a pier in southern Russia on Friday, killing at least 17 people, officials said.

The bus was carrying workers who were building a pier for an oil company on the Black Sea coast not far from Crimea, the Investigative Committee said. Several oil companies are drilling for oil off the Russian Black Sea coast.

Official accounts of how many workers were on the bus that plunged into the sea changed several times Friday morning. In the early afternoon, the Emergency Situations Ministry said 50 people had been on the bus -- the 17 people found dead in the water in addition to 33 others who were rescued by divers.

Footage released by emergency services showed the mangled bus lying on the pier after it had been lifted out of the water.

Eight people were hospitalized, five of them in serious condition, emergency officials said.

Investigators didn't immediately say why the bus drove off the pier, but local officials pointed to faulty brakes. The Tass news agency quoted the town hall of the Temryuk district as saying that the bus drove along the pier for nearly a quarter of a mile before the brakes failed.

Friday, August 25, 2017

Construction Worker Hit by Truck While Directing Traffic at Work Site Dies: Cops


A construction worker who was critically injured after being hit by a truck while conducting traffic at a New York work zone earlier this month has died, police said Wednesday night.

Suffolk County police say Gloria Taylor, 55, of Islip, died from her injuries she suffered when she was struck by the box truck that drifted over and crashed into her while she was directing traffic at the construction site in Coram on Aug. 14. Taylor had been taken to an area hospital in critical condition but ended up dying there, according to police.

Taylor was holding a sign to slow or stop traffic on the east side of northbound Route 12, which was under construction, when she was hit by the truck being driven by a 19-year-old man who was not injured, officials said. Cops did not ticket or charge the driver of the truck.

A safety check was conducted on the truck as police say they investigated.

Ambulance transportation rate increase up for consideration by Henry County commissioners


McDONOUGH— Henry County’s ambulance transportation rates may soon increase, should county commissioners approve the Fire Department’s proposal.

During a special called meeting Tuesday morning, Henry County Deputy Fire Chief Harry Sherwood said the department is seeking the increase to be in line with the national average.

“The last billing increase was in 2012. We’re way behind as far as national collection and our rates,” said Sherwood.

For example, Henry County charges $500 for basic life support transportation when the national average is $711, he said. While many counties currently charge more than $1,000 for advanced life support (ALS) 1, the proposal seeks to increase the fee from $600 to $900. The proposal suggests an increase in the ALS 2 fee from $725 to $1,100, and mileage from $10 to $15.


“We’re leaving money on the table that Henry County could be collecting, just to bring us to current standards,” said Sherwood. “The proposal is to bring us back to within what the national average is bringing in.”

Lauren Elam, of Ambulance Medical Billing, said by increasing the rates, the county could capture more on commercial insurance. The proposed increases would bring in a conservatively estimated $400,000 to $450,000 a year, Elam said.


“By increasing the rates, we can capture more on the commercial insurance. The increase from the most part would be coming from commercial insurance,” she said.


The county’s ambulance service collects about 80 percent of its billed services, or about $5.5 million per year, according to Elam.

Commissioner Dee Clemmons voiced concern with the increase, referencing uninsured patients who may not be able to afford it. She wanted to ensure that the payment plans for patients be included in the proposal.

“I don’t want them to be afraid to call the ambulance because they know the bill will be increased,” Clemmons said.

Elam said payment plans are currently available to patients and will be included in the proposal.


“We will work with anyone on payments,” said Elam.

Assistant County Manager Brad Johnson said the proposal will be brought forth for a vote during the upcoming BOC meeting.

Thursday, August 24, 2017

Senate panel to again study transportation woes

JACKSON – The Senate Transportation Committee has two days of hearings scheduled for Thursday and Friday for members to again hear about the poor condition of the state’s transportation system.

The final segment of the hearings, called by Senate Transportation Chairman Willie Simmons, D-Cleveland, will be a discussion of possible solutions.
Thus far, finding a solution to deal with the state’s infrastructure needs has been difficult to ascertain. State officials have been grappling with the issue for about five years.

The legislative leadership, led by Lt. Gov. Tate Reeves and Speaker Philip Gunn, have rejected calls to raise the state’s 18.4-cent per gallon gas tax, one of the lowest in the nation, to provide additional funds for transportation needs.

Gunn has proposed using a portion of the 7 percent tax voluntarily collected by online retailers on the items they sell to provide funds for infrastructure needs. That source of revenue, though, would generate limited funds, far less than the $400 million annually a Mississippi Economic Council study said is needed to make the needed repairs to the state’s roads and bridges.

An example of the problems in reaching consensus on a revenue source for infrastructure is that the conservative Americans for Prosperity advocacy group conducted a statewide advertising campaign earlier this summer praising Reeves for blocking efforts to raise the gasoline tax and opposing efforts to try to force online retailers to collect the tax on the items they sell.

“This campaign is to let people know that Lt. Gov. Reeves lived up to his promise to protect taxpayers this year and to encourage him to keep doing so. We’re going to give credit where it’s due,” said Russ Latino, Mississippi director for Americans for Prosperity.

At this week’s hearing, Scott Waller, interim executive director of the Mississippi Economic Council, will speak of the economic impact of a deteriorating transportation system on the state’s economy.

Members of the Department of Transportation and local officials also will testify about both the statewide problems and the woes facing individual local governments.

Only five states have lower gasoline taxes than Mississippi’s 18.4-cent per gallon levy. Mississippi’s tax is lower than that of the four contiguous states. Mississippi Department of Transportation officials say the tax is generating essentially the same amount of money it did when it was enacted in 1987.

In the meantime, the amount of travel has doubled on state-maintained roadways and the cost of construction has tripled. The cost of materials for highway maintenance and construction has increased 463 percent since the 18.4-cent per gallon gasoline tax was enacted in 1987, according to Department of Transportation statistics.

“MDOT maintains 30,000 highway miles, and 11,000 miles need to be repaired or replaced,” Northern District Transportation Commissioner Mike Tagert explained in a recent annual report. “And, approximately 900 of the 5,700 bridges MDOT maintains need to be reconstructed, because they have restrictions that hinder commercial traffic.”

Texas oil and gas companies add 20,000 jobs over year


Oil companies across Texas added about 20,000 jobs over the past year as oil prices stabilized, drilling rigs returned to the prolific Permian Basin, production grew and the industry recovered, according to an index that tracks energy activity in the state.

The number of Texas oil and gas jobs rose to almost 213,000 in July, up 10 percent over the same period last year, according to the Texas Petro Index, released Wednesday, which tracks the health of the oil industry.

“Clearly, the industry is in a state of recovery right now,” said Karr Ingham, an Amarillo economist who compiles the data for the Texas Alliance of Energy Producers.

The number of drilling rigs in Texas oil fields has more than doubled, from 206 in July 2016 to 464 last month. Drilling permits have jumped by 60 percent, up from 630 to more than 1,000 over the year. And oil production in Texas keeps rising, up almost 6 percent, from 98 million barrels to 104 million.

It’s the eighth straight monthly increase for the Petro Index since November, which capped a 24-month contraction as U.S. crude prices dropped from more than $100 in 2014 to $26 last year.

Still, Ingham thinks the recovery may have a hit a wall. U.S. oil prices have hovered under $50 a barrel for months; The Texas rig count peaked at 466 early this month, and has since fallen off.

“At some point, those numbers are going to begin to fall,” Ingham said.

If there’s one thing that history teaches, he said, it’s the rise and fall of the oil industry.

U.S. crude settled at $48.41 on Wednesday, up 77 cents or less than 1 percent.

How Will Future Of Mobility Affect Oil, Gas?


Electric vehicles (EV), autonomous vehicles and ride-sharing have played key roles in reshaping the plans of oil and gas companies, according to speakers on Deloitte’s recent “The Future of Mobility” webinar.

But while the evolution of these transportation technologies will likely impact future gasoline demand, some oil and gas leaders doubt the impact will be substantial according to Thomas Shattuck, lead market insights analyst at Deloitte Services.

For the upstream sector, Shattuck’s only real concern is whether the current trends will reach the countries that fuel a lot of the global demand growth, such as China and India. Shattuck expects the upstream sector to remain resilient considering U.S. gasoline consumption is a minuscule factor in the dynamic global system for oil and gas.

Wednesday, August 23, 2017

No quick answers expected in federal review of SEPTA train crash


Federal investigators began a review of a crash Tuesday on the Norristown High Speed Line, a process that will likely take up to a year before a final cause is released.

A one-car train carrying 41 people and an operator struck a parked, empty train car at the 69th Street Transportation Center about 12:15 a.m. Tuesday. Thirty-two of those on board, including the operator, were injured, the National Transportation Safety Board reported.

None of the injuries appeared to be life-threatening, SEPTA said, but police said at least two people had serious injuries. The operator was taken to a trauma center at Penn Presbyterian Medical Center, said Upper Darby Police Capt. Thomas Johnson Jr., though he has been released. A woman suffered serious facial injuries, he said.


The NTSB’s eight-person team will review video from the cars, conduct interviews with the dispatcher and operator, and review the vehicles and SEPTA’s safety systems in the course of the investigation, said Ruben Payan, the NTSB’s lead investigator. He expected the team would work in Philadelphia up to five days before returning to Washington to review data collected.

The cars involved did not look too badly damaged from the outside, Payan said, but there was floor buckling inside them. His staff will do an in-depth inspection of the vehicles’ interiors in the coming days. There was nothing unusual in an out-of-service train car being parked at the stop, he said.

The cause of the crash remained unclear, and Payan would not speculate how fast the moving car was traveling. The Norristown High Speed Line is equipped with Automatic Train Protection, Payan said, a signal system that monitors a train’s speed and includes some automatic braking functions. How that system was working, and if it should have prevented the accident, will be part of the NTSB review, he said.

U.S. Rep. Robert Brady (D., Pa.) called for an expedited investigation.

“It’s been six months since a train on SEPTA’s Market-Frankford Line derailed when it crashed into a stopped train. And that investigation is still going on,” he said. “Are we supposed to wait another six months to find out what led to this latest crash? We need answers now, so the problems can be corrected and the riding public is safe.”

When the call came in about the crash, Upper Darby emergency officials mobilized for a mass casualty incident and responded with about 20 ambulances. The injured were taken to eight hospitals.

The train operator, who was not identified Tuesday, is a member of United Transportation Union Local 1594. Waverly Harris, the local’s president, said he did not have enough information to comment on the crash Tuesday morning. The operator was blood-screened for alcohol and narcotics at the hospital, Payan said, and investigators were awaiting results.

Norristown Hgh Speed Line trains operate along 22 stops between Norristown and Upper Darby. The 13.4-mile line moves about 11,000 people each workday between 69th Street and Norristown, according to SEPTA route statistics. The 26 cars on the route’s fleet were built from 1993 to 1994, SEPTA reported.

The cars are required to undergo a safety inspection every two weeks, said Joe Coccio, secretary-treasurer for Transportation Workers Union Local 234, which represents workers who handle maintenance on the High Speed Line cars. That inspection would include a check of the brakes, he said. The cars also undergo regular maintenance.

A man who said he was a passenger on the train and identified himself only as Ronnie from Havertown told YC News and other reporters at the scene that the train overshot two earlier stops, at the Gulph Mills and Bryn Mawr stations, and had to back up.

After the crash, at least one rider voiced apprehension about riding on the line.

“Scared. Just a little bit,” said Tyeisha Bagwell, 27, of Frankford. “Because I got to take this train every day.”

For many riders, though, the crash was noteworthy primarily for the inconvenience it caused.

”Now I’m going to be late because I missed my train,” said Samaad Brooks, 23, of South Philadelphia, who works at American Medical Depot in King of Prussia. “Today I have to be there at 10 o’clock. That’s not happening.”

The High Speed Line’s braking system is similar to that on the Market-Frankford and Broad Street lines, a SEPTA spokesman said. The automatic signal system controls speeds less precisely than the more advanced Positive Train Control, which would have prevented the 2015 Amtrak derailment in Philadelphia and which is now in place on Amtrak’s Northeast Corridor and many of SEPTA’s Regional Rail routes. PTC is federally mandated for certain classes of passenger rail, but not the Norristown High Speed Line or the city’s two subway lines.

Still, an automatic train control system should be sufficient to keep travelers safe, said Matt Mitchell, vice president of the Delaware Valley Association of Rail Passengers. It was possible, he said, that both mechanical problems and human error could have played a role.

“Even if it was some kind of mechanical error, you would expect the operator would have recognized there was some kind of malfunction and would not have gone any further if the brakes were not working,” he said.

The crash Brady referred to was at the 69th Street center in February. In that incident, a Market-Frankford Line train derailed in a rail yard when it crashed into a stopped train, seriously injuring one of the operators. The train’s operator has retired, according to a union representative.

The NTSB also is still looking into a crash of two trolleys in January in the Powelton section of West Philadelphia. The accident, in which a Route 10 trolley rear-ended another Route 10 vehicle, injured 46 people.

More than three decades ago, the 69th Street center was the site of a crash on the Norristown High Speed Line similar to Tuesday’s incident. On Aug. 23, 1986, a car on the line careered into the terminal, injuring 44, including a man who eventually died. In that case, the NTSB found the operator was attempting to brake the train while the throttle was still on. The incident led to SEPTA’s shutting down the line for almost two months. In that era, the Norristown High Speed Line was plagued by troubles, with a car catching on fire in 1979 and a serious derailment in January 1987. Since then, though, its cars have proven to be among the most reliable modes of travel for SEPTA.

“The Norristown line is really a hidden gem of the SEPTA system,” Mitchell said. “Not many people know about it, but those who know it know it’s a very fast and frequent ride.”

Will We Ever Get Serious about Infrastructure and Transportation?



Los Angeles is on its way to get the 2028 Olympics--is its mass transit system, and accompanying road/freeway system ready to take on that challenge?

Water, transportation, our electrical grid, and other T/I issues are getting in the way of affordable housing ... yet we're not seriously confronting those issues.

President Donald Trump wants to reduce the federal regulations to create highways and other infrastructure, but is he too radioactive to be taken seriously in his recommendations?

Of note is that--compared to the last GOP President (G.W. Bush)--President Trump is about as pro-infrastructure spending as any political figure of either party we've seen in a long time. However, his political issues, and his "West Wing" issues like Russia-gate, Steve Bannon, etc. have never failed to eclipse his infrastructure agenda...and Trump is certainly in large part to blame for that.

And, of course, is President Trump's approach to environmental regulations too "toxic" for many Americans to allow him to influence current and future federal infrastructure policy?

For example, after Trump's departure of the U.S. from the Paris Climate Accord, is there now a large enough segment of America that doesn't even want to talk about transportation/infrastructure with this president and his administration?

The President aside, the fact remains: The need to get serious about transportation and infrastructure is greater than ever.

http://www.citywatchla.com/index.php/los-angeles-for-rss/13834-will-we-ever-get-serious-about-infrastructure-and-transportation

Tuesday, August 22, 2017

Could Hyperloop be the future of transportation?



Imagine traveling from Rochester to New York City in under 30 minutes. That's the goal of Hyperloop -- high speed transportation in a tube.

It's in the development stages right now and an Irondequoit man is working on the project.

Charlie Eckert graduated from Irondequoit High School. He got his bachelors at SUNY Binghamton and he's part of a project that could transform the way we travel.

If you haven't heard about it: it's high-speed transportation technology in a tube that could travel up to 700 miles per hour. It's the brain child of Elon Musk, founder of Tesla and SpaceX.

Eckert is part of a team from SUNY Binghamton, chosen as a finalist in a SpaceX competition this weekend in California.

Right now, he's at the University of Michigan working on his PhD. We spoke with him via Skype. He tells us, "A Hyperloop basically is a theoretical concept for high speed transportation. Basically, you'd have a vacuum chamber or near vacuum chamber and a rail and a pod that will levitate on the rail."

The pod would transport people in a tube. It could go above or below ground.

Nikki Rudd: "Is this the future of transportation?"

Eckert: "It could be. It seems like this competition is definitely a proof of concept to an extent."

The SpaceX competition starts Friday at its headquarters in California. Students from universities across the country will put their pods to the test on a one-mile Hyperloop track.

"We get to put our pod on the track and see how fast we can get it," says Eckert. "So, basically, the competition is whose pod can go the fastest without crashing."

Eckert hopes the pod will reach 220 miles per hour. Not even close to the 700 mile per hour goal from SpaceX. A lot of people are asking: "is Hyperloop just a pipe dream?" But there's already been talk of one going under Lake Ontario. That could mean getting to Toronto from Rochester in less than ten minutes.

"Just hopefully that works out better than the fast ferry did," Eckert says. "It's definitely a cool concept - cool to think about. It would be awesome if it someday works out."

Elon Musk of SpaceX says he already has government approval to build an underground Hyperloop from New York City to D.C. We contacted the governor's office. I'm told state officials have no information on the project. But even if it's years away, this technology shows no signs of slowing down.

Governor to announce Colorado’s response to oil and gas review after deadly home explosion

DENVER — Gov. John Hickenlooper will announce the state’s response to a review of oil and gas operations on Tuesday morning at 10 a.m.

The review was called in response to the deadly home explosion in Firestone last April.

Mark Joseph Martinez, 42 of Firestone, and Joseph William Irwin III, 42 of Frederick, were killed in the explosion on Twilight Avenue. Erin Martinez was pinned under the collapsed roof and was critically injured.

Investigators said the explosion was caused by unrefined, odorless natural gas from a 1-inch pipeline that was severed.

Anadarko Petroleum disconnected all 1-inch diameter natural gas flow lines from more than 3,000 vertical wells in Colorado shortly after the explosion.

In July, Anadarko announced plans to restart more than 3,000 vertical wells.

Man dies after sneaking onto Chelsea construction site, falling from 17th floor


  A 33-year-old man died Tuesday after he fell from a Chelsea construction site, authorities said.

The man, who was not a construction worker, crept into the site on W. 28th St. and Sixth Ave. — the future home of a new hotel — at about 7:50 a.m. and scaled to the 17th floor before jumping or slipping, witnesses told police.

After the fall, construction workers rushed out of the building to find medics doing chest compressions.

“He jumped. That’s all we know,” said one hardhat who did not want to be named. “They said he isn’t from this worksite...that he snuck in here and was taking pictures despite no one knowing who he was.”

It was not immediately clear if a camera was recovered from the scene.

Construction workers were stunned how a stranger could get onto the property.

“We don’t know if he was just some random guy,” another construction worker said. “He didn’t have ... rope or construction gloves or anything.”

Medics rushed him to Bellevue Hospital, where he died of his injuries. His name was not immediately disclosed.

Cops were investigating how the man got onto the site and managed to climb to a high floor.

http://www.nydailynews.com/new-york/manhattan/worker-rushed-hospital-fall-scaffolding-chelsea-article-1.3432088

Monday, August 21, 2017

EnerCom: WPX Markets San Juan Basin; Gears Up To Storm Delaware Basin

DENVER—WPX Energy Inc. (NYSE: WPX) has probed, dealt and drilled in the Delaware Basin in 2017—landing wells in eight Permian Basin horizons—and patiently preparing its plan of attack.

Tulsa, Okla.-based WPX has put in motion infrastructure, natural gas contingencies and a strategy to drill itself out of debt. The company is scrutinizing its March purchase of Panther Energy for $775 million and has set in place agreements and investments in pipeline.

And in exploration, WPX has revealed many surprises, including what the company needs and what it doesn’t. A cache of New Mexico dry gas is clearly a ‘doesn’t’ for WPX.

On Aug. 15, WPX COO Clay Gaspar told a packed room at EnerCom’s The Oil and Gas Conference that it plans to sell about 130,000 net acres in the northern portion of its San Juan Basin assets.

While some investors have urged a sale for a while, the southern San Juan will remain in the portfolio. But the north was always a backup for a time when natural gas might return to competitive pricing.

That changed as WPX explored the Delaware position it bought two years ago from RKI Exploration & Production for $2.75 billion.


Sunday, August 20, 2017

Governor Urges Trump To Drop Virginia From Offshore Drilling Plan

Virginia Gov. Terry McAuliffe urged the President Donald Trump’s administration to exclude his state from a federal offshore oil and gas drilling plan, citing concerns about revenue sharing and environmental issues, in a letter that his office revealed on Aug. 17.

McAuliffe, a Democrat, had previously said that any federal drilling plan that includes his state must include a revenue-sharing program.

In the letter, dated Aug. 11 and sent to Kelly Hammerle, the national program manager of the U.S. Bureau of Ocean Energy Management (BOEM), McAuliffe said he could not trust Trump, a Republican, to share revenues because he had proposed axing revenue sharing with Gulf Coast states where the drilling already occurs.

McAuliffe also said the Trump administration is working to cut funding "from the very agencies that would be charged with protecting Virginia's coastal environment in the event that exploration went forward."

McAuliffe joined other states on the East Coast, including New Jersey, Maryland, North Carolina and South Carolina in fighting offshore drilling.

The Atlantic Coast was not included in a 2017-2022 drilling plan finalized in 2016 by former President Barack Obama after opposition from East Coast governors, who feared that industrial development would harm seaside tourism. They cited a massive BP oil spill off the Gulf Coast in 2010 that hit revenues for tourism and fishing.

But in April, Trump sought to open areas off the Atlantic, Pacific and Arctic oceans when he proposed a 2019-2024 National Outer Continental Shelf Oil and Gas Leasing program by executive order. Trump has indicated he wants to make the U.S. energy dominant by maximizing output and exports of oil, gas and coal.

Drillers have supported Trump's potential expansion of oil and gas development. The International Association of Drilling Contractors, on Aug. 17, urged Interior Secretary Ryan Zinke "to expand access to available resources of the Outer Continental Shelf in order to further solidify energy security for the U.S. and future job creation and revenue generation."

Environmentalists opposed any expansion of drilling. Jacqueline Savitz, senior vice president for the U.S. at Oceana, a non-profit group focused on protecting and restoring oceans, said she hoped Trump would pull the Atlantic states out of the program. "The concern is if you drill, you'll spill," Savitz said.

BOEM said in a statement that it will carefully consider the comments sent by Gov. McAuliffe as well as those received from a diverse set of stakeholders, including elected officials, government agencies, industry, public interest groups and private citizens as it prepares a draft program.

What Is the Future of Surface Transportation Finance and Governance?

That is the question I sought to address at a meeting of Utah’s Transportation Governance and Funding Task Force earlier this week. My written testimony is here.

The fuel tax is becoming an increasingly unstable source of dedicated user revenue. Even when the proceeds that fuel taxes collect are dedicated to surface transportation infrastructure, which is often not the case, the vehicle fleet has become more fuel efficient and will become even more so in the coming decades. This is why states are now looking at replacing fuel taxes with alternative user-based revenue mechanisms, namely mileage-based user fees (MBUFs).

But just as highway tolling in much of the country has faced strong political opposition, so too will MBUFs as long as the public overwhelmingly sees the act of driving as more of a right than a service. Future technological developments may upset this dynamic.

We don’t know when automated vehicles—often called driverless or self-driving cars—will be deployed, but they almost certainly will be deployed in some manner in the coming decades. One potential application of vehicle automation technology is in shared mobility services—think taxis.

If people can hail an automated taxi much as they can from Lyft or Uber today, but without the driver, they may wind up forgoing private auto ownership altogether if they live in a dense metropolitan area. This has implications not only for land-use and public infrastructure investments, but of public perception of automobility in general. The common public perception that driving is a right and shouldn’t face direct charges may fall away as consumers get used to paying a specific fare for a specific service. If that becomes reality, it may become much more politically palatable to charge not only for the services provided by the automated taxi, but by the roadway network it relies upon. In this case, the “full fare” charged to users could include an infrastructure charge without stirring up the passions currently associated with tolling and MBUFs.

If consumers begin to see highways as a mobility service rather than a public good subject to stricter rights considerations, this may also result in the current opposition to private provision of highway infrastructure to fall as well. Right now, there are few truly private highway facilities in the U.S. However, the majority of states currently authorize public-private partnerships (P3s) for transportation infrastructure. These projects could serve as a bridge to ultimate privatization of our highway network.

Unfortunately, barriers exist to increasing private-sector involvement in the provision of highway infrastructure. Government can borrow with tax-free municipal bonds, but the private sector generally cannot (private activity bonds are designed to level this playing field, but their use is severely constrained relative to government-only muni bonds). But the biggest impediment may be a lack of incentive to investigate these arrangements: disinterest. Even though P3s provide direct benefits to taxpayers by shifting construction and financing risks to private investors, governments may not see major upsides over the status quo, wrong as that may be.

Enter “asset recycling.” Asset recycling was pioneered several years ago in Australia and harnesses the P3 framework, but adds an additional incentive for government to engage in these long-term leases with private companies. The process starts by developing a detailed life-cycle inventory of existing government assets. Potentially profitable assets are then leased to the private sector and the proceeds are pooled in a dedicated infrastructure fund. Those proceeds can then be used to finance new infrastructure, particularly what is known as “social infrastructure”—schools, government office buildings, etc.—that may lack a viable revenue stream and are thus unattractive to private investors. Adopting a similar framework in the U.S. could result in more rapid delivery of public-purpose infrastructure while shielding taxpayers from higher taxes and public debt.

I emphasized in my testimony that predictions about the deployment timeline—let alone the broader social implications—of automated vehicles are highly speculative. Few if any long-term planning decisions can be made under this great uncertainty. But I did identify one: cease investment in surface rail transit projects.

Light rail and streetcars have become popular civic boondoggles in recent decades. Both are much more costly than alternative bus service and provide few if any benefits to riders over cheaper buses. Indeed, surface rail boosters often tout alleged secondary economic development benefits rather than mobility benefits, a strange stance given that the primary purpose of any transportation system is to move someone or something from point A to point B. When boosters retreat to the “co-benefits” argument, start asking questions about the benefits. As it turns out, there is little evidence that surface rail transit increases overall economic development, as opposed to just relocating development that would have taken place elsewhere in the metropolitan area—and without generous public subsidies.

Outside of very dense urban cores like Manhattan, door-to-door automated taxi services or smaller scale automated shuttles have the potential to completely replace high-capacity, fixed-guideway mass transit vehicle service in the coming decades. The problem is that these systems have life-cycles typically ranging around 30 to 40 years. That means if new surface rail transit is brought online in 2025, we are basically stuck with it into the second half of the century. If automated vehicles are deployed in, say, 2030, that will make transit decision-making that currently is unsupported by the best available evidence to look downright disastrous in the coming decades.

In sum, cities and states need to think about surface transportation investment from a life-cycle perspective. Massive technological disruption is on the way and doubling-down of the failures of the present will only end up harming those who live and work there.

Saturday, August 19, 2017

Oil Nudges Higher On Tightening Supplies, Weak Dollar

AMSTERDAM—Oil prices edged higher on Aug. 18, with investors offered some encouragement from data hinting that oversupply was easing steadily and a weaker dollar.

But prices were still on track to close the week 2% to 3% lower after concerns about weaker Chinese oil demand weighed earlier in the week.

At 7:52 EDT, benchmark Brent crude futures were up 6 cents at $51.09 per barrel (bbl) on the day but still about 2% lower on the week.

U.S. West Texas Intermediate (WTI) crude futures were up 11 cents at $47.20/bbl, although they were also set to end the week more than 3% lower.

“Falling U.S. commercial stocks are supportive and I also believe that high U.S. product demand, and gasoline demand in particular, is helping too,” Tamas Varga, senior analyst at London brokerage PVM Oil Associates, said of the move up.

He also said a weaker dollar was bullish for oil prices as equity markets piled pressure on the greenback. .DXY

“Reports of a fire at Shell's Deer Park refinery in Texas provided a small fillip to WTI prices,” said analysts at Cenkos Securities.

One unit at Shell’s large Deer Park joint-venture refinery was shut on Aug. 17 by a fire, according to a regulatory filing. Sources added the unit would remain out of service for at least a week to carry out repairs.

The Brent forward curve has moved from contango into backwardation, where prices for immediate delivery are higher than those for the three future months. A backwardated market is considered a bullish sign for prices since it indicates demand is outpacing supply.

Signs of supply tightness have started appearing in the U.S., the world’s biggest oil consumer.

Despite a 13% jump in production since mid-2016 to 9.5 million bbl/d, the country’s commercial crude inventories have fallen 13% from their March records to below 2016 levels.

Construction of wrong-way driver system starts along I-17

PHOENIX - Construction of a new camera-based pilot system to prevent wrong-way drivers is underway in Phoenix.

The Arizona Department of Transportation says preliminary work started in the past week along 15 miles of Interstate 17.

The state is installing the system because of multiple wrong-way wrecks.

The Transportation Board on July 28 awarded a $1.9 million contract to Mesa-based Contractors West Inc.

Traffic restrictions are scheduled Friday night and Saturday morning at I-17 and Indian School Road so workers can mount thermal cameras, install fiber-optic cable and rewire control cabinets.

The restrictions include closing Indian School Road at I-17 and closing both off-ramps at Indian School Road.

ADOT says future restrictions will be scheduled at other I-17 interchanges between I-10 northwest of downtown Phoenix and Loop 101 in north Phoenix.

Friday, August 18, 2017

China's energy demand to peak in 2040 as transportation demand grows: CNPC

BEIJING (Reuters) - China's energy demand will peak by 2040, later than the previous forecast of 2035, as transportation fuel consumption continues to rise through the middle of this century, state-owned oil major China National Petroleum Corp (CNPC) said on Wednesday.

Energy consumption in China, the world's second-largest economy, will peak then at 4.06 billion tonnes of oil equivalent, up from the previous forecast of 3.75 billion tonnes five years prior, CNPC said in its annual long-term energy outlook. CNPC raised its forecast because it predicts transportation demand will rise through to 2050, twenty years longer than previously estimated.

China's oil demand will reach a ceiling of 690 million tonnes a year, equivalent to 13.8 million barrels per day (bpd), by 2030, CNPC said. The country is the world's second-largest oil consumer. That compares with last year's estimate of a peak of 670 million tonnes a year by 2027.

Oil demand will grow at an annual rate of 2.7 percent until 2020, slowing to 1.2 percent until 2030, the report said.

The headline number indicates that Chinese energy markets will continue to set the pace globally. However, the slowdown in oil consumption raises further doubt about the future role of oil in China's energy mix as alternative fuels take a greater share of the transportation and power generation sectors.

Gasoline demand will peak as soon as 2025, CNPC said. That would mean China's gasoline demand would peak only shortly after the United States.

China has vowed to cap its energy consumption in 2017 in order to raise the use of cleaner fuels as part of a wider campaign to fight air pollution.

Clean energy, including renewable fuels and natural gas, will replace coal power as the largest fuel source for power generation by 2030 and account for more than half of the nation's power generation by 2045, it said.

Natural gas consumption will rise to 620 billion cubic meters in 2030, said CNPC, up from 510 billion in last year's report.

Power demand will total 11.8 trillion kilowatt hours by 2050, the report said.

Annual crude output will remain around 200 million tonnes, or 4 million bpd, until 2030, at which point it will start to fall. Gas output will reach 380 billion cubic meters by 2050. At that point, China will account for around 15 percent of world's gas production, it said.

Thursday, August 17, 2017

Transportation Cabinet counting down to traffic impacts of total solar eclipse


Along with the rest of the nation, the Kentucky Transportation Cabinet has begun the countdown to the total solar eclipse that has captured global interest: a week till the sun goes dark and the roadways in western Kentucky begin to feel the impact of up to 500,000 eclipse chasers anticipated to flock to the region.

Occurring the afternoon of Monday, Aug. 21, the total solar eclipse will attract visitors to 21 western Kentucky counties, 10 of which are along the path’s center line. With the influx of visitors to the area, delays and slower moving traffic are possible. What is typically a two-hour drive to the region could easily become a four-hour trip due to traffic.

“We want residents and visitors to be fully prepared for heavy traffic and other potential challenges that may arise due to the mass migration of people heading to the eclipse corridor,” KYTC Secretary Greg Thomas said in a state news release. “For the best experience, visitors need to plan ahead and have a specific place to view the eclipse.”

To assist with a pleasant visit and to lessen the impact of anticipated traffic in the western Kentucky region, KYTC is asking motorists to come early, stay put and leave late. The cabinet is also imploring motorists not to stop on roadways, rights-of-way or shoulders to view the eclipse. Stopping on these areas can create traffic hazards. An increase in crashes is a concern, and KYTC is urging motorists to remain alert and to exercise patience and caution.

“While this historic event presents transportation challenges, we welcome the opportunity to showcase Kentucky to visitors,” Thomas said. “KYTC has dedicated months to prepare for increased traffic along the eclipse corridor in Kentucky, and we are ready to deploy our resources to make state roadways as safe as possible.”

Traffic through Kentucky along Interstates 24, 69 and 65 – as well as along the Natcher Parkway, the Pennyrile Parkway and the U.S. 68/KY 80 corridor in the western half of the state – is expected to be especially congested before, during and after the eclipse. Collaborating with Kentucky State Police, Kentucky Emergency Management and various local agencies, KYTC traffic engineers have prepared to pre-position crews and equipment strategically throughout western Kentucky counties to respond to traffic issues.

Officials will be monitoring traffic signals at various exits and will be prepared to operate signals manually to improve traffic flow. Dozens of message boards stationed along major highways in the corridor will share traffic information with motorists and will warn drivers not to park on the roadway or shoulders. Also, a KYTC helicopter will be deployed to monitor key interchanges and highways for traffic congestion; traffic updates will be posted to KYTC’s social media sites.

In addition to advising motorists of heavy traffic, officials offer the following tips for visitors and area residents in preparation for their once-in-a-lifetime eclipse experience:

– Bring eclipse glasses that are compliant with the ISO 12312-2 safety standard.
– Be prepared for hot weather. Temps in mid-to-late August can be in the 90s.
– Bring plenty of water – about a gallon a day per person.
– Bring picnic or snack items. Restaurants and grocery stores may experience long lines.
– Pick a viewing location with rest rooms, which will be in high demand.
– Do not stop along highways. Vehicles on the shoulder hinder traffic flow and create a traffic hazard.
– Be prepared for lines at fuel pumps. Access to fuel may be limited.
– Be aware that heavy traffic congestion may interfere with delivery of food, fuel and other supplies along the total eclipse corridor.
– Be careful – large crowds and heavy traffic may hinder the ability of emergency agencies to respond.
– Be prepared for cellphone and data access issues due to heavy demand.
– Groups traveling in multiple vehicles should consider using two-way radios in case cell service is limited.

Traffic and travel information specific to western Kentucky can be accessed via the following district social media sites: D1 (facebook.com/KYTCDistrict1), D2 (facebook.com/KYTCDistrict2), D3 (facebook.com/kytcdistrict3 and twitter.com/KYTCDistrict3).

Blockchain technology could extend to oil and gas transportation

The oil and gas industry has seen huge advances in the extraction of resources, thanks to cutting edge technologies like fracking. But it hasn’t exactly been a leader when it comes to digital adoption.

That could change, at least when it comes to the blockchain, the distributed ledger technology behind cryptocurrency bitcoin. Though they are slower to adopt the technology than those experimenting with it in finance and tech, some oil and gas industry players are exploring ways the technology could be used for everything from commodities trading to tracking flows coming from oil and gas fields.

“I’m aware of companies that are looking at blockchain technology in the oil field,” said Dan Nossa, an attorney with Steptoe & Johnson’s Houston office.

Nossa has been following the development of blockchain technology closely.

Blockchain technology can best be understood as a giant ledger that automatically tracks every transaction without the need for a central clearinghouse. It’s encrypted so it’s only accessible to various users of a given blockchain. Nossa and others say the technology has real potential to change the way business is done across various industries. Already, financial industry players are exploring how blockchain technology could be applied to trading in derivatives and other areas. Successful tests in finance could have a domino effect.

“I think if it succeeds in the financial space, there could be adoption in the oil and gas space,” Nossa said.

One big change could come through a melding of two hot technologies — the Internet of Things and blockchain. The smart sensors that make up the Internet of Things can help energy companies monitor and track oil and gas from the field to end users. But, as a report from Deloitte points out, the Internet of Things is vulnerable to hackers. Blockchain technology can lessen that vulnerability. Researchers at MIT and in other spheres are using blockchain to build stronger encryption technology than is currently available.

Blockchain technology could be the bridge between the digital world and the very physical commodities involved in the industry. “On the oil and gas side I think the sensor technology will be critical,” Nossa said.

The technology could also reduce costs and improve transparency in the industry.

Oil & Gas IQ points out that in the oil and gas futures market, where the commodities are transferred from the paper or digital market to the real world, bridging that gap is laborious and expensive. A distributed ledger that simplifies and automates transactions could make it much less laborious.

Those factors make a case for blockchain technology as potentially important in the oil and gas industry. But that importance may not emerge for some time, and as Mark Koeppen, David Shrier, and Morgan Bazilian of Deloitte point out, there are major questions the industry will have to answer before widespread adoption. They write:

“The pivot point for oil and gas will be where potential and practicality intersect. Questions persist. Oil companies for years have been open to collaboration and creating successful partnerships with one another on joint ventures; how will they collaborate in the development of blockchain networks? Will regulators take a dim view of distributed technology and the partnerships and agreements it will need to succeed?”

Economists: July construction numbers disappoint


Wednesday, the U.S. Department of Housing and Urban Development and the U.S. Census Bureau issued a joint report which showed housing starts decreased in July – and economists are not happy with the numbers.

Although the main source of the decrease stemmed from multifamily construction, one economist explained the lack of new single-family construction was just as disappointing.

“The disappointing news for homebuyers is not that multifamily starts are down, but rather that single family has barely nudged up much in the past few months,” Trulia Chief Economist Ralph McLaughlin said. “With homeownership on the rise for young households, we need more one-to-four unit construction to help keep up with demand.”

The chart below shows housing construction, while trending upward, is still far below its historical norm.
Another economist pointed out the housing market isn’t the only market at risk from the declining housing inventory.

“Moreover, the latest 15% drop in multifamily housing starts and 0.5% drop in single family starts will hold back economic growth potential,” NAR Chief Economist Lawrence Yun said. “Because of this continued shortage, expect rents and home prices to rise by at least twice as fast as the broad consumer price index.”

Another expert agreed, saying the 1.15 million housing starts disappointed expectations.

“The notoriously volatile multi-family segment drove the decrease, as single family starts were more or less unchanged,” said Brent Nyitray, iServe Residential Lending director of capital markets. “The Street was looking for 1.22 million units. Building permits came in at 1.22 million, lower than estimates as well.”

But why are housing starts so low, despite the increasing demand? First American Financial Corp.’s chief economist explained.

“The employment situation report, released earlier this month, reported an increase of 5,100 residential construction jobs between June and July,” First American Chief Economist Mark Fleming said. “The number of residential construction jobs is now 4.9% higher than a year ago.” Fleming also expands on the recent data in more detail on his LinkedIn page, right here.

“The growth in residential construction jobs supports further improvement in the pace of home building because building a home does not readily lend itself to outsourcing and automation,” Fleming said. “Home building still requires manual labor as a key input into the production process. It’s very hard to increase housing starts without increasing residential construction employment.”

But not everyone was disappointed with the decrease in housing starts. One expert even pointed out the 4.1% increase in building permits and 8.2% increase in housing completions from last year is a sign of growth.

“Despite the monthly volatility, we continue to see gradual growth in starts of single family homes on a year-over-year basis,” said Bill Banfield, Quicken Loans executive vice president. “This steady increase is a sign of a stabilizing market and gives optimism that the economy can continue to support more homeownership.”

Another expert agreed, pointing out that while the decrease may seem disappointing, it does have positive points.

“With June starts generating optimism after halting three straight months of declines, the July data is disappointing and may indicate that full year projections of 1.25 million to 1.3 million starts may be optimistic,” PwC Pricipal Scott Volling said. “However, we see two reasons to maintain some level of optimism.”

“First, July permits were up 4.1% over last year to 1,223,000 and the June permit number was revised upward to a strong 1,275,000, signaling potential strength in starts over the coming months,” Volling said. “Second, single family starts rose 10.9% from last year to 856,000.”

“Combined with June's upwardly revised 860,000 single family starts, this is the strongest two-month result for single family starts since fall of 2007, as builders continue to prioritize addressing the pent-up demand for single family homes,” he concluded.

Wednesday, August 16, 2017

How Elon Musk and Cheap Oil Doomed Push for Another Car Fuel

The idea was nothing short of revolutionary: convert the nation’s millions of trucks, buses and other commercial vehicles to run on natural gas instead of gasoline and diesel.

Back in 2008, the proposal by energy magnate T. Boone Pickens had some appeal. U.S. oil production was plunging, and the world’s biggest fuel-consuming country was becoming ever more dependent on foreign crude. Oil jumped to a record near $150 a barrel, while natural gas was comparatively cheap. Pickens co-founded Clean Energy Fuels Corp. to profit from the switch. The maker of natural gas filling stations was once valued at about $1.8 billion.

But there was a different kind of revolution. New drilling techniques led to a boom in oil supplies from the U.S., and electric cars took off. Tesla Inc., which had yet to deliver its first electric car a decade ago, now has 455,000 reservations for its Model 3 -- almost 20 times the number of natural-gas vehicles on U.S. roads as of 2015. Shares of Clean Energy Fuels are down 90 percent from a 2012 peak, and the company concedes that natural gas may only be a niche market as a transportation fuel.

“I’m not sure America is set up” for widespread use of passenger natural gas vehicles given all the infrastructure needed to get supplies to customers, Andrew Littlefair, Clean Energy Fuels’ chief executive officer, said by phone. “There are a lot of reasons it would make sense to look at that again, but I don’t know that I’m ready to say that’s going to happen.”

Pickens, who made his first fortune as an oil wildcatter five decades ago, had high hopes for natural gas because he believed crude supplies were peaking. In op-eds, media interviews and meetings with politicians including then-President Barack Obama, Pickens said the nation’s heavy-duty trucks and fleet vehicles should run on natural gas. The U.S. could reduce its reliance on oil imports and use more wind and solar power, he said.

Pickens, 89, wasn’t able to comment, according to Jay Rosser, a spokesman for BP Capital LLC, the energy hedge fund Pickens founded.

Shale Boom

By 2011, U.S. oil output began to surge with the shale boom. Three years later, prices for crude, diesel and gasoline were tumbling. While natural gas has become a staple for domestic power plants, supplanting coal, the prospect for cheaper alternatives made it less attractive as a vehicle fuel.

In April, the most recent month for data from the Department of Energy, liquefied natural gas sold for $2.52 per diesel-gallon-equivalent, compared with $2.55 for diesel. That’s hardly a bargain, considering Pavel Molchanov, an analyst at Raymond James Financial Inc., estimates that trucks that run on LNG cost about $30,000 to $50,000 more than a comparable diesel rig.

Even though natural gas has remained cheap -- trading at $2.948 per million British thermal units at 8 a.m. in New York on Tuesday -- using it to fuel vehicles is “not something that has taken off,” said Salim Morsy, an analyst at Bloomberg New Energy Finance in New York. “Gasoline and diesel are undoubtedly the cheapest in total cost of ownership, but as technology improves and batteries get cheaper,” the number of electric cars will at least double.

The number of plug-in autos in the U.S. almost tripled between 2008 and 2015, government data show. Tesla, the company founded by billionaire Elon Musk, has introduced three models since 2012, and other manufacturers are jumping into the market. Volvo AB has said all its new cars from 2019 will be hybrid or all-electric, and BMW AG is developing a self-driving electric to replace the 7-Series as the company’s flagship in 2021.

Natural gas vehicles have seen their share of the auto market shrink. Chesapeake Energy Corp., one of biggest U.S. gas producers, eliminated the team working on natural-gas vehicles in 2013. Honda Motor Co. discontinued a natural-gas-fueled model of its popular Civic sedan in 2015.

Last year, with oil locked in a prolonged price slump, Pickens sold about 4 million shares of Newport Beach, California-based Clean Energy Fuels, which operates more than 500 natural gas filling stations across the country. While the company has declined in value, Tesla traded at a record high in June.

Still, Littlefair sees opportunities for growth, especially in the fleets of vehicles owned by municipal governments trying to reduce tail-pipe emissions and operating costs. Dallas Area Rapid Transit, which uses 537 buses and 123 shuttles that run on natural gas, this month extended its operation and maintenance contract with Clean Energy Fuels. California cities including Los Angeles and Fresno also have contracts with the company.

Clean Energy Fuels is also seeking a way to expand its reach by using natural gas extracted from landfills and farms to supply filling stations.

Few Stations

While companies including AT&T Inc. and Ryder System Inc. use natural gas in trucks that make short trips and return to the same depot each day, limited infrastructure has prevented wider use. There are 1,828 natural-gas filling stations in the U.S., compared with almost seventy times as many conventional gas stations and around 38 times as many non-residential plug-in stations and charging outlets for electric vehicles, government and industry data show.

It can cost $1.8 million to build a filling station that supplies compressed natural gas, according to the National Renewable Energy Laboratory. Electric vehicles, in contrast, can be plugged into a home outlet.

“The infrastructure would be costly” for widespread use of natural gas vehicles, said Lee Klaskow, a senior analyst for transportation and logistics at Bloomberg Intelligence. “You would have to have some huge cost savings.”

Simulation hopes to address transportation difficulties faced by residents

COLUMBIA — Losing a driver's license and being out of bus money may not sound like major problems. But if you're on a fixed-income, they can determine your ability to go to work or school.

The Transportation Simulation, organized by the Public Transit Advisory Commission (PTAC) and Central Missouri Community Action, aims to provide citizens an opportunity to discuss the transportation barriers they face in their community.

Attendees will be invited to participate in role-playing situations designed to replicate different transportation obstacles, particularly those experienced by low-income residents.

Volunteers who have personally experienced income-related transportation difficulties will run the role-playing scenarios by giving participants cards that describe different situations, Cheryl Price, the chair of the Public Transit Advisory Commission, said. It is her hope that the scenarios help lawmakers and decision-makers in the community understand the difficulties that everyday people face when using public transportation and when using transportation on a fixed-income.

After the role-playing scenarios, there will be an opportunity for attendees to talk about what they learned and to discuss personal transportation concerns. Head of Transportation Drew Brooks and Fourth Ward Councilman Ian Thomas will also speak at the event.

Price hopes that a mix of residents and decision-makers attend so that residents can broach a range of transportation concerns to city leaders.

"All of us hope it opens the eyes of people as to how people try to get around in this city and how difficult it is," Price said.

The simulation will take place from 2 to 5 p.m. Tuesday at the United Methodist Church, 204 South Ninth St.

Disney World Ending Express Transportation Offering


The Express Transportation add-on service at Walt Disney World will end Wednesday, August 23. The last day for guests to purchase this service will be Wednesday, August 16.

According to Disney, while Guests who used Express Transportation enjoyed the convenience, more Guests preferred other forms of transportation.

The Express Transportation service provided park-to-park transportation from backstage locations so guests would not have to go through security again. The service was a bit controversal as it did take guests backstage and had the risk of "ruining the magic."

Disney is currently soft-launching their Minnie Van service which provides transportation between on-property locations for $20. This individual service is on-demand, but does not go backstage meaning that guests going from a park to a park will have to go through security again.

Tuesday, August 15, 2017

Al Qaeda Publishes Blueprint for Attacks on Key U.S. Transportation Systems

The al Qaeda's terror group's chief bomb maker has published a blueprint for new attacks on U.S. transportation systems, including planes, trains, and boats, which the terror group views as "prime targets," according to a copy of a lengthy manifesto that provides a guide for would-be terrorists to launch attacks.

Ibrahim al-Asiri, a top al Qaeda leader known as the terror group's chief bomb maker, detailed the extremist organization's plans to target U.S. passenger and shipping transportation services, which the terror organization views as weak links ripe for attack.

While al Qaeda's operations have been weakened by years of U.S. attacks on its key locations and apparatus, it has increasingly relied on promulgating its radical ideology to so-called "lone wolfs" who are not officially affiliated with the group but who are capable of carrying out terror attacks without detection by American authorities.

The shift to lone-wolf attacks highlights al Qaeda's continued influence and brand strength among jihadists following the rise of splinter groups such as ISIS. Al Qaeda is still is primary source of concern for the U.S. intelligence community, which continues to see the group as a central threat against American safety.

Al-Asiri emphasizes in his manifesto, published in the latest issue of al Qaeda's chief propaganda organ Inspire Magazine, that lone jihadists could easily carry out terror attacks on bustling locales, such as airports and train stations.

"We will be focusing on targeting means of transportation," the terror leader writes in the English-language article, which was first highlighted by the Middle East Media Research Institute. "We will explain more on this, which is part of the general policy of targeting the ring of security in the chain."

"When referring to transportation we refer to air, sea, and ground transportation—both local and international. Jihad groups and organizations may have the ability to target international means of transportation," according to the al Qaeda leader. "As for the Lone Mujahid, his abilities may be limited to targeting internal means of transportation of a country. And it is possible for him to draw a comprehensive plan so as to execute such kind of operations."

Trains are of particular significance to this plan, especially freight trains that carry a range of key consumer products.

"In America, trains are considered to be among the most important means of transportation within the country," the article states. "What becomes apparent is that it is too difficult to protect these means of transportation. And here is where we find its vulnerability—means of transportation today are considered to be a weak point which we must focus on."

The al Qaeda leader urges potential terrorists to focus on three key areas: The trains themselves, the routes they follow, and stations they might stop at.

Due to the difficulty in policing and monitoring these areas, they are viewed as a prime target to cause the most mayhem. An attack would not only disrupt the U.S. economy, but foster panic in the American population and drain many resources, according to the blueprint.

"Some transport companies may get into bankruptcy if targeted regularly and are unable to secure themselves, this will make people seize using such a company for their transportation needs," according to the article. "These are the most important consequences that may accompany these kind of operations."

Attacks of this nature can be carried out on a small budget and cause significant amounts of damage and death, which is of particular interest to al Qaeda.

"With little resources, it is possible to achieve great results, this is, if the operations is well executed and planned," according to the blueprint article. "The results of these kind of operations are disastrous to the economy, especially if they occur regularly."

"It is difficult for the authorities to secure all security loopholes in these operations," the terror leader states. "The ability to use different kinds of weapons, and ways to subdue the enemy according to the conditions and circumstances at hand."

The article ends with al Qaeda's traditional call to violence against America and its Western allies.
"Target America, by Allah they are in a great predicament," the article states. "We should continue to focus our efforts against it until the world gets rid of this international system led by America, and until Muslims enjoy freedom to practice their faith, freedom to apply the Laws of Allah and until Muslims secure themselves, wealth and resources from the hands of America."

What's Affecting Oil Prices This Week (Aug. 14, 2017)?

In the week since our last edition of What’s Affecting Oil Prices, Brent crude fell 32 cents/bbl week-close to week-close. For the week ahead Stratas Advisors expects prices to average $53/bbl as the adage “no news is good news” holds true. With only one upcoming data release, there will be little news to counter currently bullish sentiment. The supporting rationale for the forecast is provided below.

Geopolitical: Positive

Geopolitics, as it relates to oil, will continue to drive volatility but is unlikely to have an immediate fundamental impact. However, the few active hotspots that bear watching are more likely to hamper oil supply, helping prices. In Nigeria, protestors have occupied a crude oil facility and gas plant owned by Shell demanding jobs and infrastructure improvements. Flows from the facility were already reduced due to an outage on the Trans Niger Pipeline, but if the occupation is long-lived it could impact future volumes. Venezuela’s slow collapse remains a perennial issue, but there have been no new developments to indicate a timeline.

Dollar: Neutral

Given the substantial impact on prices from fundamentals and sentiment, the DXY and the USD/EUR exchange rate are still not as impactful as they have previously been. The dollar fell last week on soft inflation data as the Euro rose. Given that crude also fell, this is evidence that the inverse relationship is still extremely weak in light of overwhelming fundamental influences on crude.

Trader Sentiment: Neutral

Trader sentiment will be a neutral factor in the week ahead as Brent has backed off of overbought levels. While traders will remain sensitive to any negative fundamental data, the only relevant data release next week is the weekly EIA report minimizing chances for upset. The IEA and OPEC monthly reports last week reaffirmed current bullish sentiment. NYMEX and ICE WTI Managed Money net longs both fell last week, 2,253 and 380 contracts respectively. ICE Brent Managed Money net longs increased 58,255 contracts as shorts fell 18,644.

Supply: Neutral

Last week the number of operating oil rigs in the U.S. increased by three, according to the weekly report from Baker Hughes. U.S. oil rigs now stand at 768 compared to 396 at the same time last year. In the latest weekly estimates from the U.S., domestic crude production fell on declines out of Alaska. There was little concrete news out of the joint OPEC/non-OPEC meeting last week besides reiterations of how committed the deal participants were. In general, with no new supply news there is little to push markets down.

Demand: Positive

Demand continues to help support crude prices. The IEA’s report reiterated their bullish demand outlook, with reported numbers lending credence. In the U.S., distillate and propane demand increased sharply in last week’s report. ARA total product stocks fell with gasoline and distillate both seeing draws.

Refining: Positive

Margins increased in every enclave last week, potentially leading to another week of increased runs this week. In the U.S., the WTI crack at the Gulf Coast hit another new high for the year, $14.25/bbl. In Singapore, the Dubai cracking margin also hit a new high for the year at $8.08/bbl. While there are reports that Chinese runs have slowed in recent months, they still remain above last year’s healthy levels. Global refinery outages are currently fairly subdued despite scattered small upsets (e.g. Shell’s Convent facility, Paz Group’s Ashdod facility).

For the upcoming week, Stratas Advisors is expecting that crude inventories will see draw, in line with seasonal norms. Crude stocks in the U.S. are expected to fall approximately 2 million to 3 million barrels as runs remain strong. Stratas Advisors also expect the Brent-WTI differential will continue to hover around $3/bbl as Brent’s gains slightly outpace WTIs.

China to build new shale gas bases, offer more oil and gas block tenders

BEIJING (Reuters) - China is likely to build two shale gas bases in the south of the country and open up tenders for more oil and gas exploration blocks in the world's biggest energy producer, the Ministry of Land Resources said on Tuesday.

At a news conference in the capital, ministry officials said China is likely to start commercial production of shale gas in southern city of Anye in Guizhou province and Yichang in Hubei province. The ministry did not give a timetable for the start date.

The steps come as China ramps up its exploration efforts as crude oil production from ageing wells drops. Beijing is also on a mission to lift natural gas consumption to help combat smog.

In the north of the country alone, China's crude oil and gas exploration efforts cover a vast 500,000 square kilometers, with new natural gas and light crude reserves having already been discovered there, the ministry said.

In the shale gas expansion, China is seeking to encourage private firms to take part in a tender for shale gas exploration right in Guizhou on Aug. 18. The ministry said it will also consider more auctions of shale gas blocks outside Guizhou.

Meanwhile the government of Xinjiang region in northwestern China is also planning to start a second round of oil and gas block auctions, while Sha'anxi province is also preparing to offer coal-bed methane blocks.

Public comment period extended for Walan air quality regulations construction permit

The Delaware Department of Natural Resources and Environmental Control extended the public comment period on the company’s permit applicatio...