NGL Energy Partners, announced today (8/8) the completion of the Ambassador Pipeline in the state of Michigan. The Ambassador Pipeline System consists of a 225-mile bi-directional pipeline with multiple supply and delivery points. The Ambassador Pipeline connects central, northern, and western Michigan propane customers to millions of gallons of underground storage capacity in Eastern Michigan. NGL’s Wheeler Terminal is strategically located at the mid-point of the Pipeline and includes on-site storage of 11 Mbbl of propane.
A total of 5.3 MMbbl of sour crude oil was released from the SPR last week. The First Emergency drawdown of 70 MMbbl is complete, and the emergency drawdown 2A that's included in the 90 MMbbl, that is part of the 180 MMbbl release between May and November, is also complete. Currently, only drawdown 2B is active, per the DOE.
Shale drillers continue consistent output as oil field costs rise (Bloomberg)
U.S. shale oil drillers continue to show little sign of responding to high global prices with more production, only now it's not just their focus on rewarding shareholders that's holding them back, but also a preoccupation with soaring costs.
European gas oil futures anticipate recession (Reuters)
Total U.S. crude oil imports shot up by 1.2 MMb/d to 7.34 MMb/d last week, the highest since July 2020. Imports into PADD 5 jumped by 650 Mb/d to reach 1.67 MMb/d, the highest since June 2018. Imports were also up by 350 Mb/d in PADD 1, by 150 Mb/d in PADD 3, and by 50 Mb/d in PADD 2.
While projects like the greenfield Matterhorn Express and expansions on existing Whistler and Permian Highway (PHP) systems will help alleviate gas takeaway constraints out of the Permian in the next two years, a lack of additional projects beyond that time frame would limit gas production based on the High scenario in RBN Energy's latest production forecast.
8/08: (6:30 am) WTI Sinks Back as Recession Fears Continue to Permeate Market Sentiment; Natgas Below $8/MMbtu.
Oil prices continued their downward skid this morning, with WTI off about 90 cents/bbl to trade in the $88/bbl range. That puts the WTI price down about 15% over the past three weeks, even though there was a slight reprieve on Friday when it settled at $89.01/bbl, up $0.47/bbl. General malaise around the prospects for a global recession continues to permeate market sentiment.
U.S. Propane Spot Prices have Declined from Multiyear Highs (EIA)
Asian Spot Prices Jump on Russian Supply Concerns, Pelosi's Taiwan Visit (Reuters)
Asian spot liquefied natural gas (LNG) prices continued their rise towards record levels this week on an expected pick-up in demand from China as it eases COVID rules and ongoing concerns over curtailed Russian supply to Europe.
The average LNG price for September delivery into north-east Asia was estimated at $45 per million British thermal units (mmBtu), up $2.5, or 5.9%, from the previous week, industry sources said.