Last updateFri, 03 Jul 2020 5pm

API Issues Standards for Natural Gas Gathering Pipelines

API issued two standards, Recommended Practice (RP) 1182 and the second edition of RP 80, designed to address the safe operation of larger-diameter gathering pipelines used to transport natural gas from production sites to larger interstate pipelines.

The standard helps ensure large-diameter, high-pressure gathering pipelines employ integrity management practices that prioritize routine maintenance and inspections to promote safety and operational efficiency.

“These standards will enhance safety and operational efficiency, while assisting industry in meeting state and federal rules for the safe operation of natural gas gathering pipelines,” said Global Industry Services Senior Vice President Debra Phillips. “Additionally, these standards work together to ensure that the nation continues to benefit from historic shale development by delivering affordable, reliable energy to the American people through safe and sustainable infrastructure.”

Global Chemicals Output Fell Sharply in February

Data collected and tabulated by the American Chemistry Council show that led by a large decline in China due to the COVID-19 coronavirus, global chemicals production fell 2.4% in February, an acceleration from the 0.8% decline in January. Headline global production was off 1.5% year-over-year (Y/Y) on a three-month moving average basis and stood at 115.0% of its average 2012 levels.

During February, global capacity rose by 0.3% and was up 3.3% Y/Y. As a result, with the decline in production, capacity utilization in the global chemical industry fell 2.1 points to 79.3%. This is down from 83.2% last January, below the long-term (1987-2017) average of 86.5%, and the first time below 80% since August 2009.

Dallas Fed: Grim Outlook for Oil Industry

Activity in the oil and gas sector declined significantly in first quarter 2020, according to oil and gas executives responding to the Dallas Fed Energy Survey. The business activity index—the survey’s broadest measure of conditions—plunged from -4.2 in the fourth quarter to -50.9 in the first, the lowest reading in the survey’s four-year history and indicative of significant contraction. Exploration and production (E&P) and oilfield services firms both saw large decreases.

The oil production index plunged 51 points to -26.4, according to E&P executives. It posted its first negative reading since third quarter 2016. The natural gas production index also turned negative, from 15.6 to -21.2. Both indexes suggest that oil and gas production fell relative to the previous quarter.

World Bank Report Highlights Wastewater Issues, Opportunities

A new report from the World Bank, Wastewater: From Waste to Resource, calls for efficiently investing in wastewater and other sanitation infrastructure to achieve public health benefits, improve the environment, and enhance quality of life. Safely managed water, sanitation and hygiene (WASH) services are an essential part of preventing disease and protecting human health during infectious disease outbreaks, including the current COVID-19 pandemic. Right now, 80% of wastewater is released into the environment without adequate treatment.

“At a time when 36% of the world’s population lives in water-scarce regions, wastewater treatment for reuse is part of the solution to water scarcity and pollution problems,” said Jennifer Sara, Global Director, World Bank Water Global Practice. “Once treated, it can be used to replace freshwater for irrigation, industrial processes, or recreational purposes. It can also be used to maintain the environmental flow and by-products from its treatment can generate energy and nutrients.”

U.S. Imports Less Oil, but More from Canada

In 2005, U.S. refineries relied heavily on foreign crude oil, importing a record volume of more than 10.1 million barrels per day (b/d). About 60% of the imported crude oil came from four countries: Canada, Mexico, Saudi Arabia, and Venezuela, and each was responsible for between 12% and 16% of total U.S. crude oil imports that year. By 2019, U.S. crude oil import trading patterns had changed significantly. In total, U.S. crude oil imports have fallen sharply, but imports from Canada have risen steadily to 3.8 million b/d, more than twice the imports from Canada in 2005. U.S. crude oil imports from Canada accounted for 56% of all U.S. crude oil imports in 2019, according to the U.S. Energy Information Administration’s (EIA) Petroleum Supply Monthly.

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