Big New Mexico wind energy project faces public hearing

11/20/2017 The Seattle Times

A proposed eastern New Mexico wind energy project that will be the subject of a public hearing next week has a large group of backers but also faces a substantial number of opponents, including staff at the state’s utility regulation commission.

Hundreds of wind turbines would be erected near the town of Portales close to the Texas border under the proposal by Minnesota-based energy giant Xcel Energy, the Santa Fe New Mexican reported Sunday.

Xcel subsidiary Southwestern Public Service Co. has said the project would create hundreds of construction jobs and more than two dozen permanent ones when it is completed.

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Mexico Oil Exports Up, Economy Seen Bouncing Higher in Fourth Quarter

11/20/2017 NGI

Mexico’s economy contracted an annualized 0.8% in the third quarter, partly because of two major earthquakes, but economists are predicting a bounceback in the fourth quarter. Among other things, oil exports increased by almost 21% in the first nine months from the same period of 2016, and overall industrial production is rising.

The consensus growth forecast for 2017 held steady in October at 2.1%, according to the Federal Reserve Board of Dallas. Petroleum exports improved, and employment growth remained strong, economists said in a monthly update issued last week.

Manufacturing exports rose 6.6%, and oil exports were up 20.9% in the first nine months of 2017. Mexico’s industrial production, which includes manufacturing, construction, oil and gas extraction, and utilities, grew 0.3% in August.

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BP Joins Shell in Helping Mexico Execute Oil Hedge-Sources

11/7/2017 The New York Times

BP helped Mexico execute its 2018 oil hedge, the biggest in the industry, becoming the second major after Shell to participate in the highly coveted programme and challenging the traditional role of banks in the operation.

Three industry sources said BP has become a participant of the 2018 programme on which Mexico spent some $1.26 billion (£959.5 million) to hedge its 2018 oil exports against oil price falls as part of government’s efforts to stabilise its budget.

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If Mexico Goes MIA, Permian Gas Could Flame Out

10/24/2017 Barrons 

Natural gas spot prices fell to below $3.00 per million British thermal units on Tuesday. United States Natural Gas notched a 0.31% decline so far. The Energy Information Administration is expected to release supply and demand data later this week, which tends to move gas prices on the day, but natural gas and natural gas stock investors have bigger fish to fry in Mexico.

Three pipelines connecting the Permian Basin to Mexico came online with total capacity of 3 billion cubic feet per day or bcfd early 2017, but flows have been at a paltry 0.2 bcfd, says Bernstein analyst Jean Ann Salisbury. The firm expected 1.5 bcfd. She thinks that delays in Mexico build-outs “will most negatively impact Permian producers.”

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Gulf of Mexico Oil Spill May Be Largest Since 2010 BP Disaster

10/16/2017 Bloomberg

An oil spill in the Gulf of Mexico last week may be the largest in the U.S. since the 2010 blowout at BP Plc’s Macondo well that sank the Deepwater Horizon rig.

The Delta House floating production facility about 40 miles (64 kilometers) southeast of Venice, Louisiana, released 7,950 to 9,350 barrels of oil from early Wednesday to Thursday morning, according to closely held operator LLOG Exploration Co. That would make it the largest spill in more than seven years, data from the U.S. Bureau of Safety and Environmental Enforcement show, even though it’s a fraction of the millions of barrels ejected in the 2010 incident.

The LLOG spill was triggered by a fracture in a flowline jumper, Rick Fowler, the company’s vice president for deepwater projects, said in an email. That’s a short pipeline used to connect nearby subsea structures. Multiple barriers placed on either side of the fracture stopped the release, but the the flowline jumper hasn’t yet been repaired, Fowler said.

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Hurricane Nate shuts down about 90% of Gulf of Mexico oil production

10/9/2017 CNBC

Oil production slowed to a trickle in the Gulf of Mexico this weekend as energy companies turned off the taps and evacuated workers in preparation for Hurricane Nate.

More than 92 percent of crude output was offline in the nation’s offshore production hub as of Sunday morning, according to the U.S. Bureau of Safety and Environmental Enforcement. Energy companies also “shut in” nearly 78 percent of natural gas production, the bureau estimated, based on reports from companies.

The storm developed into a hurricane on Friday night and strengthened as it passed through the central Gulf of Mexico, before making landfall near the mouth of the Mississippi River. U.S. producers shut down about 300 of the 737 offshore platforms in the Gulf of Mexico to avoid potential damage.

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Total Joins Chevron in Gulf of Mexico Development

9/24/2017 Financial Tribune

French Total has expanded its presence in the Gulf of Mexico by closing a farm-in agreement with Chevron for the development of seven prospects covering 16 blocks in the deepwater section of the gulf.  The French company said the prospects it will develop are located in the Wilcox play in the central Gulf of Mexico, next to the Anchor discovery, and in the Norphlet area, close to the Appomattox discovery, Oil Price reported.

Total will take stakes of between 25-40% in the prospects, to add to its already existing interests in producing fields in the GOM: a 17-% stake in the Tahiti field, whose operator is again Chevron, and a 33.33% interest in the Chinook field, operated by Brazil’s Petrobras. The French major also holds 40% in the North Platte field, operated by Cobalt Energy.French Total has expanded its presence in the Gulf of Mexico by closing a farm-in agreement.

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