Travel, Topsides, and NAPE Expo

This week, I’m travelling the country.  Okay, so not the country, but Texas anyway.  I’m spending a couple of days in Galveston before I head up to Houston.  Believe you me, I am grateful for the relief from the cold, snowy weather engulfing my home state right now.  Give me 50’s over 20’s any day!

I’m here for the Topsides show being held at Moody Gardens before going back up to Houston for the Winter NAPE Expo.  These are two industry shows that I really enjoy.  The exhibitors and attendees always have great information to provide, and always friendly and willing to talk.  The Offshore Technology Conference that will be held at Houston’s Reliant Center in May is awesome, but with more than 100,000 attendees, sometimes it becomes challenging to have good conversations with people.

Today, I’ll be at Topsides with Dr. Scott Shemwell, the author of our report on SEMS regulations and an Integrity Management specialist (among other things).  We did a couple of webinars on the topic a couple of months ago, and you can check out the archives on Integrity Management: A Critical Issue in the Energy Industry here and Critical Issues in the Energy Industry here.  As always, please let me know if you have any questions for either myself or Dr. Shemwell.  This is the second year Scott and I have attended Topsides to talk with people about what’s happening in the industry, and every time I talk to that guy I learn something new.  (You know how it is when you get to spend time with really smart people.)  I’m sure tomorrow will be no exception.  Again, I’m always excited to meet readers in person, so if you’ll be there, let me know!

Tomorrow, I’ll be at the NAPE Expo in Houston at the George R Brown Convention Center.  Last year this event was a huge success, and I don’t just say that because I won an iPad. (although, that in and of itself would have convinced me to mark that show down as time well spent!).  PenWell and the Oil & Gas Journal will have a booth at the event, and I’ll be out and about on the show floor meeting new people.  Stop by and say hello.

Well, yesterday was a rainy morning in Galveston. Today, however is crystal clear, cool, and gorgeous. I am a happy camper.  Why?  I had a wonderful hotel room last night.  Normally, I wouldn’t be so excited by the mere existence of a hotel room, but I am especially grateful this time. As the plane’s doors were getting ready to close my phone rang.  It was the website I’d used to book my hotel room.  The hotel I’d booked more than a month in advance was overbooked, and they asked if this was a good time to talk about re-booking somewhere else.  Unfortunately, they frown on telephone conversations on planes.  When my plane landed, I called back and the helpful representative and I spent an hour looking for a comparable room in Houston.  That didn’t work.  I offered up Galveston as an alternative, since…I was working in Galveston this week too.  Finally, we got me set up with a place to lay my weary head.  That’s a little more drama than I care to find in my traveling, but it all ended up working out for the best.  I have a great room at a lovely historic hotel, my window faces the gulf and I can watch the waves, and I got to cut down my travel time for the next couple of days.  Now, if I can get the weather at home to cooperate and get me home on time….
‘Til next time,
Jessica

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Refinery Complexity Talks

This morning’s webinar on the Worldwide Refinery Survey with Complexity Analysis with Daniel Johnston was a great success.  Thank you to everyone who attended.  Just in case you didn’t catch it this morning, never fear!  I recorded it.  You can view the recording here.  There’s even a discount code for PennEnergy Research‘s refining products included at the end.

Daniel did a fantastic job, and we got some great questions from the audience.  Find out information about how it all started, primary reasons to use the refinery complexity analysis, and how it all comes together.  If you view and have questions, just let me know, and I’ll suss out the answers for you.  After the webinar, if you want a copy of the slide deck, I can hook you up there as well.  Just email me at jthompson@pennwell.com.

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Preparing for The Big Crew Change

The Big Crew Change has been a topic of conversation for…a while.  As the energy sector’s workforce gets closer to retirement, the discussion centers around ramping up recruiting efforts to enhance the workforce.  What about all the information and experience that is the current workforce’s legacy?  How do we pass that on to the incoming workforce?

PennEnergy suggests that site licenses from well-known industry publications may be a solution.  The Oil & Gas Journal is one such publication.  It has extensive history, horizontal content, accessible archives, and wide readership. (Bonus: I know a lot about this one because I work with their site license program.)

The Oil & Gas Journal’s first issue was released in 1902, and it has remained a leader in the industry.

Oil & Gas Journal presents news and technical articles and statistics about a specific, vitally important business to professional workers in that business.  It selects articles and facts within articles carefully in service to one standard: usefulness to the target audience.  It anticipates readers’ questions about the subjects and events it covers and pursues and reports answers, in as much operational detail as possible – Oil & Gas Journal Media Kit 2014

The weekly issues cover the depth and breadth of the oil & gas industry with content that appeals to a broad spectrum of oil & gas professionals across the globe. A Signet Ad Study done by the Oil & Gas Journal in July 2013 confirmed their readers include professionals from the following industries:

  • ProductionOGJ
  • Exploration
  • Drilling
  • Financial/Business
  • Gas Processing
  • Pipeline/Transportation
  • Refining
  • Petrochemical

For all of its extensive history, OGJ has adapted with the times.  Oil & Gas Journal is published 4-5 times monthly, and each issue is an interactive, online magazines delivered via email.  However, they haven’t abandoned the rich tradition of the print publication.  Each month there is a print magazine released, in addition to the digital edition,that is, on average, around 140 pages.  However the reader prefers to read their industry news, OGJ is ready to provide.  They even have mobile apps available.

As the current workforce gets closer to retirement, preserving and passing on that information and experience is vital, because while much about the oil & gas industry improves and changes, there is much that stays the same as well.  More than 100 years of covering the oil & gas industry’s news in technology, policy, and comprehensive statistical information, OGJ offers a legacy of rich information the incoming work force will need during this Big Crew Change.

A benefit of the site license program is that it offers their wealth of knowledge through easily accessible archives.  As of today, the magazine has digitized the content back to 1990.  Okay, so let’s do a little math (don’t worry, I used a calculator).  That’s 24 years of issues that are archived and available at the end of 2014.  That would be 1,248 issues of the Oil & Gas Journal are at the fingertips of every site license client.  All the technical information, statistics, surveys, and special reports are right there.

The special reports and features are chosen with great thought each quarter to ensure they are applicable to what is happening right now in the industry.  Some of those features include the Worldwide Refinery Survey, Worldwide Construction Projects, and US Pipeline Economics Study.  Industry experts and editors of the Oil & Gas Journal have contributed to PennEnergy Research’s webinar content.  Sr. Pipeline Editor Christ Smith spoke at a webinar with PennEnergy Research in September and Daniel Johnston who compiles the Complexity Analysis that goes with the refinery survey will be contributing to a webinar on January 28th.

Each site license client’s site license is customized to their needs, and can even include statistical tables and research from PennEnergy Research in addition to the content from the Oil & Gas Journal.  With a current client list of 42 companies including majors, super-majors, and national oil companies, the site license program has become a go-to resource for industry leaders.

Don’t just take my word for it, the Oil & Gas Journal is recognized by B-to-B Magazine as one of the Media Power 50.

Oil & Gas Journal assumes a leadership role within the oil and gas publishing arena through dominance in digital advancement.  It is with great confidence that the OGJ brand continually excels at extending media vehicles not only for readers, but also for advertisers to reach and target global audiences.

For this reason, OGJ received recognition in B-to-B Magazine as one of the Media Power 50 in May 2013.  OGJ is also the only publication within the oil and gas industry to gas such accreditation in 2013. – Oil & gas Journal Media Kit 2014

How does your company plan to handle the Big Crew Change?  Where do you get your industry information?

‘Til next time,

Jessica

 

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Offshore Achievement Awards Finalists Announced

I love to see great talent and successes recognized across all industries.  Each year the offshore industry in the UK showcases the very best in talent and remarkable successes with the Offshore Achievement Awards.  The OAA’s are hosted and organized by the Society of Petroleum Engineers Aberdeen Section in conjunction with sponsor TAQA and yesterday (January 13, 2014) they announced the finalists.  The categories such as safety innovations, technology breakthroughs, and company successes are recognized in addition to individual achievements such as contribution to the offshore industry and collaborative working.

“The Offshore Achievement Awards once again highlight the pioneering work performed within the offshore oil and gas and renewables industry.  This year’s judges were extremely impressed by the talent that the UK industry has to offer,” said Ian Phillips.  Phillips is the director of energy business consultancy Pale Blue Dot Energy limited and the SPE Aberdeen board member who organizes the event. – PennEnergy.com  Oil & Gas: Finals Announced for Offshore Achievement Awards.

Offshore Achievement AwardThe ceremony will take place on March 20, 2014 at the Aberdeen Exhibition & Conference Centre with more than 500 industry professionals from across the United Kingdom expected to attend the event.  The OAA’s will be hosted by Sean Lock, a team captain on the popular comedy panel show “8 Out of 10 Cats” and one of the most highly acclaimed comedians in the UK.

The winners will take home unique trophies designed by Kayleigh Cumming’s of Robert Gordon University, Aberdeen.  Her design “split sphere” was chosen in a student competition at the university.  Kayleigh’s “split sphere” design features the award details in a glass disc concealed between two hemispheres.

To find further information about the awards or to book a table at the ceremony, you can visit the SPE’ Offshore Achievement Award website

The finalists for the 2014 Offshore Achievement Awards are:

Export Achievement (sponsored by Saltire Energy)
EnerMech
EV
Tendeka

Safety Innovations (sponsored by Petrofac)
AMEC
Stork Technical Services – ERBAS
Viper Subsea

Emerging Technology (sponsored by Nexen)
Aubin Group
Guardian Global Technologies
Ocean Power Technologies

The Innovator (sponsored by BG Group)
Paradigm Flow Services
Tendeka
Viper Subsea

Great Small Company (sponsored by Wood Group PSN)
Accord Energy Solutions
Coretrax Technology
Viper Subsea

Great Large Company (sponsored by Offshore Europe Partnership)
DOF Subsea
Hydrasun
Wood Group

Working Together (sponsored by Aberdeen Business School)
Alba Power/ Petrologistics
Britannia Operator
The Underwater Centre

Young Professional (sponsored by Maersk Oil)
Liam O’Neil, AMEC
Duncan Chedburn, Maersk Oil
Raymond MacKenzie, Nexen Petroleum UK

Inspiring Leader (sponsored by DOF Subsea)
Doug Duguid, EnerMech
Steve Nicol, Halliburton
Trevor Jee, Jee

Environmentalist (sponsored by AMEC)
Cape Environmental Services Offshore
Stork Technical Services
TWMA

Significant Achievement (sponsored by Aker Solutions) will be announced on the evening.

‘Til next time,

Jessica

 

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Worldwide Refinery Survey with Complexity Analysis Webinar

The Oil & Gas Journal, an organization I work for, does an annual survey of all the refineries in the world.  It contains lots of data, I’ve listed all the data fields below.  As popular as this survey has always been, PennEnergy Research decided to take it a step further and included the Complexity Analysis, and Daniel Johnston and I are doing a webinar about it on January 28th, 10:00AM CST.  This takes the Nelson Refinery Complexity Index, which is information on construction costs, product slate, replacement values, etc.  Okay, so that doesn’t begin to cover it, so here’s the summary information.

The Worldwide Refinery Survey and Complexity Analysis combines the 2014 Worldwide Refinery Survey with the Nelson Refinery Complexity Index. The Nelson Refinery Complexity Index is a cost-based index. The index provides insight into such things as refinery construction costs, replacement value, conversion capability and product slate.

The Nelson and the Equivalent indices have been improved and upgraded based on the author Daniel Johnston’s extensive research, analysis and discussions with those in the industry. Specifics are detailed in the documents enclosed with the spreadsheets. Other criteria that make an index practical include; consistency, repeatability, compatibility with the available data, and easiness to understand and access.

Both the Nelson Complexity Index (NCI) and Equivalent Distillation Capacity (EDC) are included and calculated into the regular Refinery survey spreadsheet. The Nelson Complexity Index is a pure cost-based index. It provides a relative measure of refinery construction costs based upon the distillation and upgrading capacity a refinery has. The index was developed by Wilbur L. Nelson in the 1960s to quantify the relative cost of the components that make up a refinery. The Nelson index compares the costs of various upgrading units such as a catalytic cracker, or a reformer to the cost of a crude distillation unit. NCI and EDC statistics have become widely used in industry literature to provide insight into various aspects of refinery value or operations.

For the third year in a row, the Bottom of Barrel Index is also included. The BoB index provides a means of quantifying and characterizing a refinery’s ability to process heavy crudes and produce premium refined products. It represents the combined capacity of a refineries Coking, Catalytic Cracking and Hydrocracking units relative to Distillation Capacity (expressed as a percentage). US average BoB Index is 55% (1/1/2011) Rest of the World average is 21% (excluding the US). Total World average is 28%.

Additionally the survey includes ownership percentages. Listed are the individual or multiple owners and their percentages.

So, every year I get a ton of questions on this survey and the information in the complexity analysis, and I always do my best to find the answers…Because, I don’t have all the answers.  This year, I decided to get their answers about the Complexity Analysis from the horse’s mouth, so to speak.  Daniel Johnston is incredibly knowledgeable and a great speaker.   He has added real value to the responses the Oil & Gas Journal receives from the refineries, so that the user gets information on stuff like construction costs and product slates.  This is going to be the first webinar Daniel and I will do together.  (Well, I say “together”…basically I do the introduction, closing and ask the questions and he says all the important stuff.)  I’m really excited about this upcoming webinar.  If you want to check it out or if you know someone who might want to check it out, you can register here.  There’s no cost, and this will be recorded.  So if you aren’t sure if you can be there on January 28th at 10:00AM CST, register anyway.  I’ll email you a link to the recording when everything is said and done.

Data fields for the Worldwide Refinery Survey:

  • Distillation Capacity
  • Vacuum Distillation
  • Thermal Processes
  • Coking
  • Catalytic Cracking
  • Catalytic Reforming
  • Catalytic Hydrocracking
  • Catalytic Hydrorefining
  • Catalytic Hydrotreating
  • Alkylation
  • Polemerization
  • Aromatics
  • Isomerization
  • Lubes
  • Asphalt
  • Hydrogen (MCFD)
  • Oxygenates
  • Sulfur Extraction
  • Ownership Percentage

‘Til next time,

Jessica

 

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Pipeline Explosion Rocks Creek County, Oklahoma

Monday morning an explosion at a natural gas pipeline near Milfay, Oklahoma cut off gas services to several homes in the midst of the polar vortex sweeping the country.  Fortunately no one was hurt in the explosion of the 26-inch pipeline operated by Tulsa, OK based ONEOK, but investigators are still unsure about the cause of the blast.  A resident of nearby Depew saw the explosion.

Theresa McKinzie was tending to her horses near Depew when she saw a massive fireball.

She described it as shooting about 10-15 hundred feet in the air before collapsing.

“Then a few seconds following, there was a very large boom, shook everything, rattled the car everything else,” McKinzie said. – Pipeline Explosion Causes Large Fire Near Milfay, January 6, 2014 5:47PM, NewsOn6 Richard Clark and Ashlei King

ONEOK quickly turned off the gas flow, and the fire was out within the hour. But pipeline officials were forced to wait for the pipeline to cool before completing the investigation and beginning repairs to the gas pipeline.  Although no structures were damaged by the flames, natural gas service to several homes was cut off.  Temporary service is being arranged for those families.

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Train Derailment in North Dakota Sends a Fireball Skyrocketing

Monday, a mile-long train carrying crude oil derailed near Casselton, ND, sending a fireball skyrocketing and plumes of black smoke filling the air.  Fortunately, no one was hurt in the explosion, but concern over toxic fumes from the smoke has prompted authorities to call for an evacuation of the town.

As darkness fell, the fire was still so intense that investigators couldn’t get close enough to count the number of cars ablaze, but an estimate put that number at 10.  With temperatures below zero, the heat radiating from the blaze could be felt at least half a mile away.

Hannah Linnard, 13, said she was in the bedroom of her friend’s house about half a mile from the derailment, wrapping late Christmas presents.

“I looked out the window and all of a sudden the train car tipped over and the whole thing was engulfed in flames and it just exploded.  The oil car tipped over onto the grain car,” she said.  Hannah said she could feel the warmth even inside the house. – Huffington Post, Train Derailment Causes Fiery Destruction In Casselton, ND, Dave Koplack, 12/30/13, 9:54PM EST

The North Dakota Department of Health warned that exposure to the burning oil could cause a variety of symptoms including: shortness of breath, coughing and itching and watery eyes.  People suffering from respiratory conditions such as asthma, bronchitis, or emphysema in the vicinity were urged to minimize outdoor activity.

Ed McConnell said early Tuesday that most residents heeded the recommendation to evacuate their homes to avoid the strong winds predicted to shift blowing potentially hazardous smoke toward the town overnight. With forecasts predicting one of the coldest nights of the year, residents were urged to relocate to a shelter at Discovery Middle School in Fargo, about 25 miles away, rather than sleep in their cars.

The rail tracks run straight through the middle of Casselton, a town of 2,400 people about 25 miles west of Fargo.  McConnell estimated that dozens of people could have been killed if the derailment had happened within city limits. ABC News, Mayor: ND Town Dodged a Bullet in Crude Explosion, Dave Kolpack, 12/31/2013 (AP)

According to Oil & Gas Journal statistics, North Dakota produced 242,486,000 barrels of oil in 2012, and a good portion of the production is transported by rail. United States Crude Oil Production By State – Annual, PennEnergy Research.  The number of crude oil carloads has seen a dramatic increase since 2009 as activity in the Bakken continues.

 

What’s Going On with America’s Gasoline?

The US Environmental Protection Agency (EPA) released a proposal for changes to the Renewable Fuel Standard (RFS) on Friday, November 15, 2013.  The proposal attempts to find the precarious balance between encouraging growth in the biofuels sector and blending more ethanol than some engines can handle safely.

The Renewable Fuel Standard passed in 2007, and, in recent years, the production of biofuels has rapidly increased.  However, gasoline demand did not meet expectations after RFS passed.  The EPA said in a statement, “We are now at the ‘E10 blend wall,’ the point at which the E10 fuel pool is saturated with ethanol.  If gasoline demand continues to decline, as currently forecast, continuing growth in the use of ethanol will require great use of higher ethanol blends such as E15 and E85.”  EPA 2014 RFS Proposal: Industries and Environmentalists React, Conway Irwin, Breaking Energy, November 18, 2013

This proposal decreases the targets for advanced biofuel and total renewable fuel than what is laid out in the Clean Air Act.

Screen shot 2013-11-15 at 4.42.27 PM

Source: EPA

This proposal is viewed as a victory, albeit a conditional one, by refiners.  They say it doesn’t go far enough.  However, it is perceived as a step back in efforts to achieve US energy security and emissions goals by biofuels and environmental groups.

The American Petroleum Institute’s president and chief executive, Jack Gerard expresses concern for American consumers and the reality of cellulosic biofuels, while lauding the EPA’s acknowledgement of the blend wall.

“EPA has acknowledged that the blend wall is a dangerous reality and that breaching it would serious impacts on America’s fuel supply and would be harmful for American consumers.

“While the agency took a step in the right direction, more must be done to ensure Americans have the choice of ethanol-free gasoline for boats and small engines, and to bring their mandates closer to reality on cellulosic biofuels, which do not exist in commercial quantities.

“Congress must protect consumers by repealing this outdated and unworkable program once and for all.” EPA 2014 RFS Proposal: Industries and Environmentalists React, Conway Irwin, Breaking Energy, November 18, 2013

The Brazilian Sugarcane Industry Association’s North American Representative, Leticia Phillips expresses her disappointment that the RFS proposal minimizes the sugarcane ethanol Brazil is prepared to export to the US, and views the decreases as a step back.

“Slashing the 2014 target for advanced biofuels would be a huge step backwards from the Obama administration’s goal of decreasing greenhouse gases and improving energy security.”

“We are surprised and disappointed that EPA’s proposal minimizes the 650-800 million gallons of sugarcane ethanol Brazil is poised to supply to the United States in 2014.” EPA 2014 RFS Proposal: Industries and Environmentalists React, Conway Irwin, Breaking Energy, November 18, 2013

Other groups weigh in on the issue as well.

Novozymes President, Americas Adam Monroe

“The Renewable Fuel Standard was signed into law to break OPEC’s effects on the nation: high oil and gasoline prices, American dollars going offshore and environmental consequences our grandchildren will endure.”

“We cannot put oil’s interests before the nation’s needs. Blending more renewable fuel means more savings for consumers at the pump.”  EPA 2014 RFS Proposal: Industries and Environmentalists React, Conway Irwin, Breaking Energy, November 18, 2013

American Fuel & Petrochemical Manufacturers (AFPM):

“EPA’s recognition of the blendwall and the potential adverse effects on consumers is a welcome step, however greater reductions in the biofuel mandate are necessary if consumers are to avoid all the detrimental impacts of the statute.”

“EPA’s actions can only be short-term in nature and point to the need for Congress to work quickly in addressing the severely flawed and totally outdated Renewable Fuel Standard (RFS). EPA 2014 RFS Proposal: Industries and Environmentalists React, Conway Irwin, Breaking Energy, November 18, 2013

The creators of the Solar Schools project, the Natural Resources Defense Council recognizes the depth and complications inherent in the issue. “There is no denying that the bulk of today’s conventional corn ethanol carries grave risks to the climate, wildlife, waterways, and food security,” said NRDC’s Franz Matzner in a recent blog post . “It is equally true that as a nation we need low carbon, sustainable biofuels to combat climate change and break our addiction to oil.” 

“…developing sustainable, next generation biofuels is complicated.  It’s technically and economically challenging and it’s not going to happen without ongoing course corrections to ensure the explicit goal of the Renewable Fuel Standard is met—namely to move the country away from polluting fuels like gasoline and today’s corn ethanol and toward sustainable, low-carbon alternatives.” Putting Renewable Fuels Back on Track, Franz Matzner

This isn’t an issue of black and white, do or do not.  When the RFS passed in 2007 it set goals for biofuel usage. (36 billion gallons of biofuel, including 22 billion gallons of non-corn biofuel) Putting Renewable Fuels Back on Track, Franz Matzner.  The provisions for the EPA to make ongoing adjustments were Congress’s recognition of the obstacles that would need to be overcome to reach these goals.  No matter which side you come down on, the EPA appears to be following those directives.

Ultimately, to achieve the goals of the RFS, the key will be expanding next generation fuels that can use a diversity of feedstocks guided by a smart set of policies that protect our biodiversity, food and feed supplies, and climate.  To hit the mark, the biofuels program must not require more consumption of a given feedstock than the environment can comfortably support.  Putting Renewable Fuels Back on Track, Franz Matzner

As in most complex issues, there is no easy fix or solution.  That precarious balance has to be maintained, adjustments will have to be made, and a realistic view of the current situation is crucial.  Does this provide that balance?  Is this a step backward?  Does it go far enough?

‘Til next time,

Jessica

Expansion Pipeline Projects Not Expected to Bring Price Relief to New England…This Year

This winter, multiple pipeline expansion projects are expected to begin service in the Marcellus Shale.  The expansion projects will increase natural gas takeaway capacity from the Appalachian Basin, where the past two years production has increased significantly.  Focused primarily on trasportation to the New York/New Jersey and Mid-Atlantic regions, these new projects would have a limited benefit for consumers in New England.  Despite the increase in natural gas arriving in the region, price spikes during peak winter demand periods don’t seem to going anywhere.

EIA

EIA

The expansion projects would add at least 3.5 billion cubic feet per day (Bcf/d) of additional capacity to New York/New Jersey and Mid-Atlantic markets, and have expected in-service dates between 2013 and 2015.  More than 2.0 Bcf/d of expansions are expected to be in service for this winter alone.  The New York-New jersey Expansion project on a portion of Spectra Energy’s Texas Eastern Transmission Company pipeline from Linden, New Jersey to Manhattan, New York, is the largest of these projects at 0.78 Bcf/d.  The Federal Energy Regulatory Agency (FERC) announced the start date for initial service of these expansions on October 17, 2013.

Despite the approval by FERC for the initial service to begin, consumers in New England would not see a significant benefit from the expansions until 2016.

The Algonquin Gas Transmission (AGT) pipeline, which takes gas from the Marcellus and other sources to consumers in New England, has traditionally operated at near full capacity during periods of peak winter demand.  The next planned expansion on AGT is the Algonquin Incremental Market (AIM) project which would enable the pipeline to flow north an additional 0.42 Bcf/d of gas received at its interconnect with Millennium Pipeline in Ramapo, New York.  The target in-service date for the AIM Project is November 1, 2016. – Mike Ford, Today in Energy, Marcellus natural gas pipeline project to primarily benefit New York and New Jersey, EIA, Oct. 30, 2013

Market Prices of natural gas (see graph from EIA) reflect the difference in construction activity for New York and New England Markets.  When compared to the nationwide benchmark price for gas purchased (Henry Hub in Erath, Louisana), monthly forward prices for gas purchased at AGT continue to spike in winter months.  However, the forward price at the Transco Zone 6-New York (TZZ6-NY) trading hub is similar to the Henry Hub forward price.

MarcellusShalePipelineChartEIA

EIA

 

Several additional projects are expected to increase the takeaway capacity of natural gas out of Marcellus Shale this winter to consumers in New York/New Jersey and Mid-Atlantic regions, but these expansion projects experienced delays that set back the service dates.

 

 

Big Data = Big Opportunity, But What A Pain in the…Processor

 

 

In the oil & gas Industry there’s a lot of change and growth happening. As more and more systems become automated and integrated, regulations change, and the market and competitive environment shift, information and knowledge become increasingly more important. Managing that influx of data becomes essential.  Whether this is used in the search for natural resources, understanding the global market, or managing safety and environmental risks, data is essential to make these business decisions.    In this white paper, Drilling for New Business Value, managing Big Data is the topic for discussion.

 

As the oil and gas industry continues to grow in complexity with changes in regulations, tighter margins, and possible infrastructure threats, executives need an easy way to view the increasing volumes of available data, make smarter, faster decisions, and create action plans in real-time. Leading oil and gas companies are recognizing that Big Data and Business Intelligence is not just the domain of “back office” analysts, but it is paramount to optimizing day-to-day operations across a broad spectrum of field workers, engineering, management, and sales and marketing roles. Read more here.

 

When I read the white paper, I was floored by the sheer volume of data out there.  I had to take a moment to try to wrap my head around the number of zeros this would entail.  The paper cites industry analysts IDC,

 

“the digital universe now includes 2.7 zettabytes of data. (A zettabyte equals almost 1.1 trillion gigabytes.)” Vesset, Dan and Benjamin S. Woo. “Worldwide Big Data Technology and Services 2012-2015 Forecast.” IDC. March 2012.

 

Okay, so I knew there was a lot of digital information floating around out there, but until today, a zettabyte was a term I had never heard of.  My company alone has 80+ websites and portals…I can’t even consider all of the social media universe.  Seriously, Tumblr alone with all the GIFs and pictures?  YouTube?  My puny brain is sparking with size of these numbers.  (How many zeros is in a trillion again?)  I kind of feel like the CD someone put in the microwave, just to see what would happen…Zettabytes? Yottabytes?

 

‘Til next time,

 

Jessica