A report from Citigroup analysts said the US Gulf Coast is on the path to emerging as a major LNG trading hub, and that could lead to an LNG futures market in the US. "What appears to be unfolding into next year is a seismic change in the functioning of the global LNG market," the report reads in part.
The University of Cincinnati has completed a three-year study that found no evidence linking fracking to groundwater contamination, writes Erik Milito, director of upstream and industry operations at the American Petroleum Institute. "The facts on fracking show that not only has the technology helped lower fuel, utility and manufacturing costs, and not only is it environmentally safe, but it is integral to U.S. status as the world's leading reducer of greenhouse gas emissions," he writes.
The rising cost of renewable fuel credits is putting a strain on independent refiners, executives say, noting that a speculative bubble might be causing the problem. CVR Energy will spend $235 million on the credits this year, twice as much as it did last year, President and CEO Jack Lipinski said.
Oil sourced from US shale fields is expected to drop by 14% through 2017, according to the Energy Information Administration. Shale oil makes up over half of US oil production, and the reduction is likely due to reduced investing and low oil prices.
Pat Wagner has been named the interim chief financial officer at Marathon Oil, replacing the departing J.R. Sult. The Houston-based company recently cut production and reduced spending as it continues to deal with the effects of the oil price drop.
Enbridge is planning an 18-hour outage for its Ozark crude pipeline from Cushing, Okla., to Wood River, Ill., on Aug. 30. The company plans to replace the Niangua River pipe during the outage.
Corvex Management's Keith Meister has nominated 10 Corvex employees to replace the board at Oklahoma-based Williams Cos. He was previously a director at Williams but resigned over disagreement with the company's future following a failed takeover bid by Energy Transfer Equity.
A series of earthquakes in North Texas is probably linked to hydraulic fracturing, according to an Environmental Protection Agency report. The report goes against the conclusions of a report by the Texas Railroad Commission.
Valero Energy Partners says it will pay $325 million to acquire refinery terminals in Louisiana and Texas from a Valero Energy subsidiary. The terminals are expected to generate $25 million in net income in their first year of operation, Valero said.
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