-Despite booming profits in the global refining sector, as much as 2 million barrels per day of European processing capacity could soon be shuttered. Via Reuters, Total CEO Patrick Pouyanne said the European refining market’s weak fundamentals have not changed. Total plans to cut production in half at its 207,000-barrel-per-day Lindsey refinery in the UK. Other firms such as Shell, BP and Eni are also planning to cut capacity. Europe’s refining sector has been ravaged by weak domestic demand and competition by new mega-refineries in the Middle East.
-The widespread idling of rigs has thus far failed to stop the oil boom, according to the Energy Information Administration. Via Bloomberg, companies have idled 151 rigs in five shale formations since October, but they would need to shut down 200 more to halt overall production growth. Production in those five shale plays is expected to reach a record 5.47 million barrels per day in March despite a two-year low in the number of rigs exploring for oil. Improved technology and a focus on more productive areas are driving the continued production surge.
-Enterprise Products Partners and Oiltanking completed the $6 billion merger they agreed to in November. The merger provides Enterprise with a slew of new marine terminals along the Texas Gulf Coast. Enterprise CEO Michael Creel called the move a “significant milestone” for Enterprise that will help the company grow its midstream services business. Enterprise acquired the general partner of Oiltanking for $4.4 billion and proposed the merger in October.
-Meanwhile, Kinder Morgan closed on its $3 billion acquisition of Hiland Partners — a deal that will boost Kinder Morgan’s midstream presence in the Bakken region. Hiland’s assets include crude oil gathering and transportation pipelines and natural gas gathering and processing systems that serve producers in North Dakota and Montana. Hiland’s customer base includes some of the largest producers in the Bakken, including Continental Resources, Oasis Petroleum, XTO Energy, Whiting Petroleum and Hess Corp.
-The European Union is investigating Siemens’ proposed $7.6 billion acquisition of Dresser-Rand over concerns it could reduce competition and raise prices for industrial goods.
