In Texas, rising power demand, increasing dependence on variable-output renewables, and declining availability of dispatchable fossil-fired plants to back up wind and solar have left the Electric Reliability Council of Texas (ERCOT) power grid in a pickle. As part of its response, the Public Utility Commission of Texas (PUCT) adopted a tool called the Performance Credit Mechanism (PCM) to help ensure the grid will be able to meet a yet-to-be-defined reliability standard. But while key metrics for the PCM have been identified, the details will determine which dispatchable resources will be supp ..read more

Utilities in Virginia, North Carolina and South Carolina, all anticipating rapid growth in electricity demand through the 2030s, have ambitious plans for renewables but are acknowledging that solar and offshore wind will need to be backed up by a lot more natural gas-fired generation. Fortunately, the new Mountain Valley Pipeline (MVP) and planned expansions to it and the Transcontinental Gas Pipe Line (Transco) system are providing utilities in the three-state region with enhanced access to Marcellus/Utica-sourced natural gas, albeit at premium prices to gas users closer to that production. I ..read more

Every year, the biggest wild card regarding Gulf of Mexico (GOM) crude oil production is the severity of the Atlantic hurricane season. A season generally free of major storms in offshore production areas will likely have only a minimal impact, but a summer and early fall with even just one or two powerful hurricanes along certain paths can cause output to plummet, sometimes for extended periods. In today’s RBN blog, we’ll look at GOM production gains over the years, the degree to which hurricanes and other issues have reduced output in the past, and the new production expected to come online ..read more

Enterprise Products Partners, already a leading provider of “well-to-water” or “well-to-market” midstream services out of the Permian, recently announced a deal to acquire private-equity-backed Piñon Midstream for $950 million in cash. But this isn’t just another bolt-on. Over the past few years, Piñon has been building out its one-of-a-kind Dark Horse system, which gathers and treats “sour” associated gas in a highly prolific, crude-oil-saturated part of the northern Delaware Basin and permanently sequesters the resulting hydrogen sulfide (H ) deep underground. In today’s RBN blog, we’ll disc ..read more

For a few days last week, Canada experienced a nationwide shutdown of its rail transportation network — the backbone of its economy. Of the literally thousands of items railed across Canada to consumers and for export to the U.S. and overseas, we consider three important liquid energy commodities — crude oil, propane and butane — that are transported by rail to provide some perspective on the volumes and dollar values that could have been jeopardized by an extended shutdown. In today’s RBN blog, we summarize the short-lived disruption to Canadian and international commerce and tally the impact ..read more

Crude oil production in the U.S. Gulf of Mexico (GOM) is poised for a growth spurt through 2030 even as producers brace for a host of challenges, not least from forecasts that global oil demand will subside in the long term. But while the GOM’s supply accounts for a relatively small portion of total U.S. production, exploration and production companies (E&Ps) haven’t lost interest, in part because the Gulf offers key crude grades in high demand. In today’s RBN blog, we examine what is stoking the renewed interest in developing the GOM.  ..read more

Through a pair of newly announced, multibillion-dollar acquisitions, ONEOK is following up on its game-changing purchase of Magellan Midstream Partners by gaining additional scale, significantly increasing its role in NGLs and adding a huge crude oil gathering system in the Permian. The new deals are designed in large part to help ONEOK “feed and fill” its gas processing plants, takeaway pipelines and fractionators. In today’s RBN blog, we’ll discuss the details and implications of ONEOK’s newly announced plan to acquire EnLink Midstream and Medallion Midstream.  ..read more

Over the past decade, the only significant growth market for U.S. crude oil and NGLs has been exports, with over 90% departing from the Gulf Coast. Exports via Gulf of Mexico ports have surged from about 1 MMb/d in 2016 to over 6 MMb/d last year. Great news for PADD 3 export facilities, right? Well, it’s not that simple. The distribution of barrels has been wildly uneven, resulting in significant winners, forlorn losers, and everything in between. And export volumes are still ramping up, as is the competition among marine terminals for crude and NGL export market share, with far-reaching conse ..read more

The Gulf of Mexico (GOM) has long been a hotspot for crude oil and natural gas production, but technological advancements have pushed the boundaries of what’s possible in deepwater operations, opening previously inaccessible reservoirs. Chevron is the first to deploy new equipment capable of handling the more extreme pressures found very deep below the seafloor. In today’s RBN blog, we’ll highlight the project — known as Anchor — and explore how this new technology is paving the way for similar developments.  ..read more

One of the most compelling Greek myths is the story of Sisyphus, a man condemned by the gods to eternally push a giant boulder to the top of a mountain, only to have it crash back down to the valley just short of his goal. His plight is not a bad metaphor for the long-term historical trend of U.S. E&Ps, which neared pinnacles of financial stability in 1999, 2008, 2014 and 2020 — just before price drops sent returns plunging. Producers seem to have ducked out from under the curse recently, recording record post-pandemic profits in 2021 and 2022, then settling into an extended period of stab ..read more