GLG News by Oil and Gas Refining Experts (North America)

    The BNSF and other railroads charge in new coal transportation tariffs and contracts a fuel surcharge to recover the cost of fuel.  Other freight moves also come under fuel surcharges.  The commentary that follows discusses by the numbers the BNSF’s fuel surcharge on...

Nippon Oil is closing their small and low complexity Toyama refinery due to lack of process units to convert heavier crudes and high costs in a market with overcapacity.  

    The EPA is currently being challenged in the courts by both the states and industry over various aspects of the Clean Air Interstate Rule (CAIR).  The outcome of the case could provide an opportunity for those trading SO2 allowances.

    SO2 allowances are traded daily in the broker and private party markets.  The value of these credits are down, affecting both the cost to generate electricity on coal and the realized sales price received by coal suppliers.

    The Clean Air Interstate Rule (CAIR) requires a further reduction in NOx from coal-fired power plants starting in 2009.  This reduction in NOx will add to the dispatch cost from coal-fired generation.

Mexico needs to attract expertise of the international oil companies to reverse the decreasing crude production of the country.  One third of the Mexican government's budget has to be provided by oil, PEMEX.  Of course, the Mexican constitution does not allow profit sharing in oil production...

ENI, the Italian Oil & Gas Company needs Gazprom's help to move natural gas (NG) by pipeline from Libya to Italy.  Of course, Gazprom will control this new avenue of NG to Southern Europe. 

The Wall Street Journal article, cited above, is enlightening how the oil  field service companies and shipping companies have taken over the destiny of major oil companies in the frontier of deep sea exploration (drilling) in the choice deep sea areas such as in Alaska, the Gulf of Mexico and...

Japanese LNG buyers cut a new contract with Pertamina, the Indonesian state run oil & gas company, for a ten year extension of the present contract with reduced capacities but LNG prices more aligned to crude pricing.  LNG in Asia is now getting more closely linked to crude pricing with LNG...

Cheniere Energy is finally to receive their first LNG cargo to their Cameron Sabine Pass terminal.  Sabine pass is the largest US regasification terminal with a send-out capacity of 2.6 bscfd.  The peak capacity could be 4.3 bscfd provided supply of LNG can be assured.