WASHINGTON, Jan. 10, 2012 /Coal Geology-PRNewswire/ – The U.S. natural gas market is going to have to change dramatically for pipeline developers to salvage their plan to ship gas from Alaska to the Lower-48 states, a key federal official said today at the Platts Energy Podium.

“It is going to take a big turnaround in the market, no doubt about it,” Larry Persily, federal coordinator of Alaska Natural Gas Transportation Projects, said at the newsmaker event in Washington, D.C.

TransCanada and ExxonMobil have been working with state and federal officials on plans to build a $40 billion, 48-inch-diameter pipeline from the North Slope to the Canadian border, where Canadian pipelines would carry gas to the Lower-48.

However, shale gas development has dampened U.S. demand for the gas, and North Slope producers BP, ConocoPhillips and ExxonMobil met with Alaska Governor Sean Parnell last week to discuss alternatives to the project, including a pipeline to a new liquefied natural gas (LNG) export project.

After the meeting, BP CEO Bob Dudley and ConocoPhillips CEO Jim Mulva said the LNG project seemed to be a better way to get the gas to market, casting growing doubts on the viability of the pipeline.

On Tuesday, Persily acknowledged that the pipeline’s future hinges on the producers. “It is going to take concurrence of the three producers. They are the ones that control the vast majority of the leased acreage, the production coming out of there. They are the ones that are going to have to sign 20-year firm shipping commitments on the pipeline worth more than $100 billion.”

Persily said he thought the project had a 50-50 chance of being constructed by 2020. “I haven’t given up on the project. … What it would take is the companies believing the market is there at a sufficient price.”

He also noted that there are key benefits to building the pipeline instead of the LNG project. The Alaska Natural Gas Pipeline Act provides federal loan guarantees for the pipeline, and $21 billion worth of guarantees are currently authorized, he said. The law also allows for accelerated depreciation for the pipeline and an enhanced oil recovery investment tax credit for the gas treatment plant, which together are worth more than $1 billion in tax savings, he added.

“All that applies if you build a pipeline to move gas to the Lower-48. If it is an exclusively export-only line, unless federal law is changed, you don’t get those benefits,” Persily said.

Meanwhile, the United States Deputy Interior Secretary David Hayes, also speaking at the Podium event, said the U.S. is working to give Shell an answer on the company’s plans to drill several exploratory wells this summer in Alaska’s Beaufort and Chukchi Seas.

Hayes, who was appointed by President Obama to chair an interagency task force on Alaska energy development, said meetings at both a secretarial and staff level are being held regularly on Shell’s plans.

“We are committed to give them a timely up or down,” Hayes said.

The Interior Department has already given conditional approval to Shell’s exploration plans for the Beaufort and Chukchi. But the company has yet to submit applications for individual permits to drill specific wells, Hayes said.

Hayes also said Interior will not budge on a condition that Shell end its drilling program about 38 days short of the time the company had requested. Hayes said the time was needed for the drilling of a relief well in the event of a blowout.

A recording of the Hayes-Persily session is available via podcast at this link:

http://platts.com/PodcastsDetail/EnergyPodium/energypodium/.  You may be asked to complete a one-time-only cost-free Platts website log-in if you haven’t filled one out previously.

Sponsored by Platts, a leading global energy, petrochemicals and metals information provider, Platts Energy Podium provides an ongoing forum for prominent newsmakers and the press to address important energy and environmental issues.

For more information on energy and energy policy, visit the www.platts.com .

Daily Rate Reaches Second-Highest Level Recorded in 2011

SINGAPORE, Dec. 26, 2011 /Coal Geology-PRNewswire/ – China’s apparent* oil demand in November rose 2.6% year on year to 39.08 million metric tons (mt) or 9.54 million barrels per day (b/d) – the second-highest daily rate recorded this year, according to a just-released Platts analysis of statistics released by the government.

November’s oil demand at 9.54 million b/d, which was just slightly less than February’s 9.58-million-b/d level, was boosted by record-high refinery throughput as the Chinese oil companies ran their plants at full capacity to replenish depleting diesel stocks.

Oil demand in November was also the third-strongest according to Platts records, which date back to 2005. This November’s oil consumption is less than December 2010′s 9.62-million-b/d figure and this February’s 9.58-million-b/d level.

“Local media have reported in recent weeks that widespread diesel shortages have once again affected the country, with long queues for limited supplies of diesel seen at retail stations in several provinces, prompting Beijing to call on the national oil companies to raise output,” said Calvin Lee, Platts senior writer, China.

In November, Chinese refiners processed 37.87 million mt of crude, or an average 9.25 million b/d. This was 3.3% higher year on year, showed data from the country’s National Bureau of Statistics.

Daily refinery throughput reached an all-time high last month as the country’s two national oil companies – PetroChina and Sinopec – operated at full capacity after regular maintenance to replenish fast-depleting inventory, especially diesel.

Chinese companies produced 14.13 million mt of diesel in November, which was 5.2% more than October. Diesel output in November increased for the second straight month, after it dipped in August and September.

The production increase, coupled by an easing in consumption of refined products following the end of seasonal peak demand, resulted in a build-up in refined product stocks for the first time in six months, according to a report by the official Xinhua news agency.

Inventories of gasoline, diesel, and jet fuel climbed 3.6% month on month by end-November, rising for the first time since May, Xinhua said.

In November, China imported 4.8% less refined oil products at 3.35 million mt, compared with a year ago, while oil product exports increased 2.9% to 2.14 million mt.

“The drop in imports is largely attributed to China reducing its reliance on imported diesel. Analysts say that there is a general shift by Chinese companies from importing diesel to importing crude oil to refine it into diesel themselves. Because retail prices are regulated by the government, refiners incur lower losses if they import crude to produce diesel compared with selling the higher priced imported diesel domestically,” said Lee.

Looking ahead, China’s apparent oil demand is expected to remain high in December.

China’s economic planning agency, the National Development and Reform Commission, has in recent days twice tasked state-owned companies with ensuring there is adequate supply of coal, oil and natural gas during the upcoming winter to spring, which would translate into another month of high refinery throughput this month.

MONTHLY TRADE DATA IN MILLION METRIC TONS:

*Platts calculates China’s apparent or implied oil demand on the basis of crude throughput volumes at the domestic refineries and net oil product imports, as reported by the National Bureau of Statistics and Chinese customs.

The government releases data on imports, exports, domestic crude production and refinery throughput data, but does not give official data on the country’s actual oil consumption figure and oil stockpiles. Official statistics on oil storage are released intermittently.

Platts releases its monthly calculation of China’s apparent demand between the 18th and 26th of every month via press release and via its website. Any use of this information must be appropriately attributed to Platts.

For more information on crude oil, visit the Platts website at www.platts.com. For Chinese-language information on oil and the energy and metals markets, visit http://www.platts.cn/.

About Platts: Founded in 1909, Platts is a leading global provider of energy, petrochemicals and metals information and a premier source of benchmark prices for the physical and futures markets.  Platts’ news, pricing, analytics, commentary and conferences help customers make better-informed trading and business decisions and help the markets operate with greater transparency and efficiency.  Customers in more than 150 countries benefit from Platts’ coverage of the carbon emissions, coal, electricity, oil, natural gas, metals, nuclear power, petrochemical, and shipping markets.  A division of The McGraw-Hill Companies (NYSE: MHP), Platts is headquartered in New York with approximately 900 employees in more than 15 offices worldwide. Additional information is available at http://www.platts.com .

About The McGraw-Hill Companies: McGraw-Hill announced on September 12, 2011, its intention to separate into two public companies: McGraw-Hill Financial, a leading provider of content and analytics to global financial markets, and McGraw-Hill Education, a leading education company focused on digital learning and education services worldwide.  McGraw-Hill Financial’s leading brands include Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Indices, Platts energy information services and J.D. Power and Associates.  With sales of $6.2 billion in 2010, the Corporation has approximately 21,000 employees across more than 280 offices in 40 countries.  Additional information is available at http://www.mcgraw-hill.com/.

SOURCE Platts

August 24, 2011, SINGAPORE, (Coal Geoogy) – China’s apparent oil demand* in July increased to 38.29 million metric tones (mt), or an average of 9.05 million barrels per day (b/d), as oil consumption appeared to have recovered after seasonal refinery maintenance, according to an analysis of recent Chinese government statistics by Platts, a leading global provider of energy, petrochemicals and metals information.

[ReviewAZON asin="1856176363" display="inlinepost"]n June, apparent oil demand by the world’s second largest oil consumer slumped to just 9.01 million b/d, the lowest so far in 2011, as several refineries were shut for turnarounds.

In July, Chinese refineries processed 37.49 million mt of crude oil, or an average of 8.86 million b/d, up from June’s processing rate of 8.69 million b/d and 6.2% more than the crude throughput a year ago.

“The July refinery throughput figure takes into account the slowed production at some plants due to turnarounds as well as an unexpected shutdown at PetroChina’s Dalian refinery in northeast Liaoningprovince due to a fire at the plant in mid-July,” said Calvin Lee, senior writer, China, Platts.

Local refineries boosted output as margins improved following a decline in the cost of crude feedstock and domestic retail prices for gasoline and diesel remained unchanged since the last price hike announced by the government in April, industry sources said.

Chinese refiners also ramped up production to restock depleting inventories of diesel in preparation for the August harvest season when consumption is expect to rise, the sources said.

July net oil product imports stood at 0.8 million mt, slightly higher than 0.54 million mt in July 2010, but less than June’s net imports of 1.36 million mt.

“High international oil product prices forced Chinese companies to import less from overseas; at the same time, they have been halting exports to retain more barrels at home to ensure adequate supplies to the domestic markets,” said Lee.

And with most of the scheduled maintenance completed by the end of July, analysts expect Chinese oil demand and crude imports to resume their uptrend in the second half of the year.

“A forecast released earlier this month by China’s Ministry of Industry and Information Technology (MIIT) implied that crude throughput will inch up for the remainder of the year, or at least maintain the pace seen in the first half of 2011. Other analysts have also reached the same consensus that the country’s consumption will pick up again later in the year,” said Lee.

The MIIT’s forecast called for China’s crude throughput in 2011 to reach around 460 million mt or an average of 9.24 million b/d, up 8.5% from 2010. In the first seven months of this year, total crude throughput stood at 258.77 million mt, or an average of 8.95 million b/d.

*Platts calculates China’s apparent or implied oil demand on the basis of crude throughput volumes at the domestic refineries and net oil product imports, as reported by the National Bureau of Statistics and Chinese customs.

The government releases data on imports, exports, domestic crude production and refinery throughput data, but does not give official data on the country’s actual oil consumption figure and oil stockpiles. Official statistics on oil storage are released intermittently.

Platts releases its monthly calculation of China’s apparent demand between the 18th and 26th of every month via press release and via its website. Any use of this information must be appropriately attributed to Platts.

For more information on crude oil, visit the Platts website at www.platts.com. For Chinese-language information on oil and the energy and metals markets, visit http://www.platts.cn/.

About Platts: Founded in 1909, Platts is a leading global provider of energy, petrochemicals and metals information and a premier source of benchmark prices for those markets. Platts’ news, pricing, analytics, commentary and conferences help customers make better-informed trading and business decisions and help the markets operate with greater transparency and efficiency. Customers in more than 150 countries benefit from Platts’ coverage of the oil, petrochemicals, natural gas, electricity, coal, nuclear power,shipping, and metals markets. A division of The McGraw-Hill Companies, Platts has approximately 900 employees in more than 15 offices worldwide.

About The McGraw-Hill Companies: Founded in 1888, The McGraw-Hill Companies is a leading global financial information and education company that helps professionals and students succeed in the Knowledge Economy. Leading brands include Standard & Poor’s, McGraw-Hill Education, Platts energy information services and J.D. Power and Associates. The Corporation has approximately 21,000 employees with more than 280 offices in 40 countries. Sales in 2010 were $6.2 billion. Additional information is available at www.mcgraw-hill.com.

SOURCE Platts