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| Economy | ||
| Bakken-Cushing oil pipeline project canceled due to lack of interest | ||
| 2014-12-15 | ||
| Enterprise Products Partners is shelving a proposed pipeline that would have transported crude from North Dakota to Oklahoma, the company announced on Friday. The news came in the midst of a brutal slide in global oil prices that have raised concerns about whether U.S. companies will continue to build on the expansion of oil production. Middle East oil producers have yet to announce a cut in production to offset the drop in crude, in what some analysts say is a slow-bleed strategy designed to make pumping crude as uneconomic as possible for the world's fastest growing non-OPEC oil producer. Enterprise Products—a publicly traded partnership designed to provide financing on oil and gas infrastructure projects — said in a terse statement that investors had "decided not to move forward with development of its proposed Bakken to Cushing crude oil pipeline." Commitments from potential partners "were not sufficient to support the project," Enterprise Products added. The company did not immediately respond to an inquiry from CNBC on whether the project's closure was related to the drop in oil prices and other factors.
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| Posted by:Anguper Hupomosing9418 |
| #10 Warren Buffett and his boys (Obama, Soros) do NOT want pipelines built - it hurst Buffett's railroads, and it makes sure gas stays abundant and cheap and widely distributed (Something Soros and his sock puppet Obama dont want). |
| Posted by: OldSpook 2014-12-15 16:15 |
| #9 From Edward Jones: So What Happens Next? We expect prices to remain unpredictable and volatile in coming weeks and months. Prices could fall further, and investors should be prepared for that. However, prices could also turn and move higher if any of the factors previously noted begin to reverse or if there is a major geopolitical event that alters or just scares markets. We expect oil prices will soon bottom and begin a slow recovery in 2015. Low oil prices will help the global economy, resulting in both demand rising and the U.S. dollar depreciating back toward prior levels. This in turn should help push prices up, although likely at a gradual pace. Supply will not likely respond in the nearer term. Oil producers tend to not make sudden changes in activity due to prices moving up or down. We expect supply to be curtailed materially only if we see continued weakness into 2015. Even then, most capital-spending cuts will have limited impact as reductions will likely be focused more on natural gas, exploration and project expansions before anything associated with current production. What Is Our Long-term Oil Price Outlook? Our longer-term outlook is for both WTI (main U.S. price) and Brent (main international price) to typically be in the range of $75-$95 per barrel the majority of the time, although they will be above and below at times. We expect prices to remain below this range through at least 2015. We expect WTI to average about $5 less than Brent, comparable to its current discount. |
| Posted by: Besoeker 2014-12-15 12:40 |
| #8 NIMBYists there refuse to allow construction of pipelines and LNG facilities Don't forget, "where's the graft in all that", as in lower prices for consumers. Not good for |
| Posted by: Procopius2k 2014-12-15 08:03 |
| #7 Green-outs or "unscheduled Earth-Hours" surely? Put the blame squarely on the luddites. |
| Posted by: Bright Pebbles 2014-12-15 06:55 |
| #6 If all of this energy sadness comes to it, for the sake of political correctness, can we refer to 'black outs' or 'brown outs' as simply.... Previously Lit Areas (PLA)? Comments and input from RU faculty welcome. |
| Posted by: Besoeker 2014-12-15 04:45 |
| #5 I'll go with the moderator pink comment. High priced oil will one day return. It's not for nothing that we've been trained to $3.50 per gallon gasoline. |
| Posted by: Besoeker 2014-12-15 04:23 |
| #4 Sounds more like the Teamsters and railroad unions got to them. |
| Posted by: 49 Pan 2014-12-15 04:00 |
| #3 New England Electricity Prices Spike As Gas Pipelines Lag Some electricity customers in New Hampshire are in for a shock this winter. Numerous utilities across New England have announced electricity rates that are some of the highest in the history of the continental United States. And it’s a problem that’s expected to get worse before it gets better. ... “In New England, this winter, based on what’s been recently trading, is likely to have the highest natural gas prices on planet earth,” Taff Tschamler, chief operating officer of energy supplier North American Power, told an energy conference this fall. That’s traders hedging against another winter as cold as last year. According to Competitive Energy Services, a private energy consulting firm, Gas for January delivery is trading at nearly $19 per million BTUs. In Japan, which relies entirely on imported gas and often has the world's highest prices, gas is forecast to cost less than $18 this winter. There’s no doubt that New England gas demand has outstripped pipeline supply, and the market is responding. ... “What I think we’re hoping for is that the good lord who protects drunks and the United States, will also protect New England,” said Peter Brown, an energy attorney with the law firm Preti-Flaherty, at this fall’s energy conference. In other words, pray for a warm winter. |
| Posted by: Anguper Hupomosing9418 2014-12-15 02:15 |
| #2 Meanwhile we are spending billions on vapor-green projects which never produce anything worthwhile - nor are they meant to. |
| Posted by: CrazyFool 2014-12-15 01:04 |
| #1 It would be best to play the long game, but I strongly suspect the players are in debt up their wazoos &/or have to borrow money from somewhere to pay for this. |
| Posted by: Anguper Hupomosing9418 2014-12-15 00:37 |