-Shell shut down its Bengal refined products pipeline Tuesday after a small leak in Baton Rouge, La. Via Reuters, the leak led to evacuations in the area, but did not cause injuries. The pipeline will remain shut until the cause of the leak is discovered. The pipeline connects Louisiana refineries to tank farms in Baton Rouge owned by Shell and Colonial Pipeline.
-Meanwhile, the American Petroleum Institute (API) today released a new pipeline safety recommended practice it said would provide operators a “holistic framework” to address safety issues over the entirety of a pipeline’s life cycle. RP 1173 comes as lawmakers press federal regulators on pipeline safety in the wake of the recent oil spill in Santa Barbara County, Calif. The Pipeline and Hazardous Materials Safety Administration has proposed new rules requiring operators to notify authorities of pipeline incidents within one hour.
-Enterprise Products Partners closed on its acquisition of $2.2 billion in midstream assets owned by Pioneer Natural Resources and Reliance Holding. Enterprise bought the firms’ member interests in EFS Midstream, which provides natural gas gathering, treating, compression and condensate processing services in the Eagle Ford Shale.
-Analysts at Goldman Sachs believe the recent fall in oil prices will dash any hopes of a drilling recovery in 2015. Via FuelFix, only 20 to 50 rigs are expected to return to work this year — far fewer than the 100 to 150 rigs forecasted when oil prices stabilized around $60 in May and June. West Texas Intermediate crude has fallen below $53 per barrel amid economic crises in Greece and China. The refining sector, on the other hand, continues to roll along thanks to strong demand and robust gasoline cracks, according to Deutsche Bank.
-Oil sands producers see a silver lining in the crude oil slump — lower operating costs and more competitive balance with U.S. shale development. Via the Financial Post, a Cenovus Energy executive said on Tuesday his company could see its capital costs and operating expenditures fall by 30% if oil prices stay below $80 per barrel.
