Aliso Canyon natural gas storage facility resumes operation
The California Public Utilities Commission and the Division of Oil, Gas and Geothermal Resources cleared Aliso Canyon, California’s largest underground natural gas storage facility, to increase injections above earlier imposed limits. The facility has undergone extensive testing after a leak was detected in October 2015 and service stopped in February 2016.
Natural gas-fired electricity generation reaches highest level for 2017
The amount of natural gas used for electricity generation, or power burn, exceeded 41 billion cubic feet during the week of July 20 — the highest daily level to date for 2017, according to data from PointLogic Energy. This is not unexpected since power burn generally peaks at the end of July or the beginning of August because of the high demand for air conditioning, according to the U.S. Energy Information Administration (EIA).
U.S. crude oil production expected to reach record high in 2018
U.S. crude oil production in 2017 is expected to average 9.3 million barrels per day (b/d), an increase by up to 0.5 million b/d over 2016, according to the EIA Short-Term Energy Outlook. Crude oil production should reach an average of 9.9 b/d in 2018, according to EIA estimates, which would exceed the previous record of 9.6 million set in 1970.
Seasonal factors for distillate consumption declining
The role of traditional seasonal factors that have driven U.S. distillate markets in the past have been significantly reduced due to changes in demand trends, trade patterns and fuel specifications, according to the EIA. Distillate use in the U.S. has been highly seasonal because of its use as a home heating fuel. But in recent years, use of distillate as a heating fuel has decreased significantly.
Bangladesh secures financing for first regasification terminal
The first liquefied natural gas (LNG) import terminal in Bangladesh, Moheshkhali Floating LNG project, is scheduled to go online by mid-2018 offshore of Moheshkhali Island in the Bay of Bengal, according to the EIA. The terminal will be jointly developed by Excelerate Energy Bangladesh Limited and the International Finance Corporation, and will use a floating storage and regasification unit with a capacity of 0.5 billion cubic feet per day.
Maritime chokepoints are critical to global energy security
Chokepoints that are part of the major trade routes for global seaborne oil transportation can be found in the EIA’s 2017 World Oil Transit Chokepoints report. Chokepoints are narrow channels along widely used global sea routes for oil transport. But some are so narrow that restrictions are placed on the size of the vessel that can navigate them, which can cause supply delays and increased shipping costs.
Important oil trade chokepoints near Arabian Peninsula
Many of the nearly 59 million barrels per day of global petroleum and other liquids production moved on maritime routes in 2015, transited the Suez Canal and SUMED Pipeline, the Bab el-Mandeb Strait and the Strait of Hormuz chokepoints around the Arabian Peninsula, according to the EIA. Chokepoints are critical to global energy security. The inability of oil to transit a major chokepoint, even temporarily, can lead to substantial supply delays and higher shipping costs, resulting in higher world energy prices.