-Petrochemical construction will likely keep the Houston area out of a recession amid the upstream sector downturn, according to a report from the University of Houston. Via FuelFix, the Houston area will add 13,000 jobs this year, compared to more than 100,000 last year. Oil and gas related job losses in Houston could range from more than 50,000 to more than 75,000. Blue-collar workers in East Houston may benefit the most from the more than $30 billion in petrochemical construction projects ongoing in the region.
-West Coast refiners are buying up Russian crude amid a seasonal shortage of Alaskan supply. Via Reuters, up to four tankers are expected to carry nearly 3 million barrels of oil to U.S. refineries through July. Production of Alaskan North Slope crude, which is regularly shipped to West Coast refineries, typically falls in the summer months.
-Oklahoma regulators are growing increasingly concerned about a recent rise in earthquakes, which has coincided with a surge in drilling activity. Via Reuters, there were 35 earthquakes of magnitude 3.0 or greater from June 17-24. Some of the quakes occurred in places where there are no wastewater injection wells. Several recent studies have established links between injection wells and seismic activity. Injected liquid volumes doubled between 1997 and 2013.
-Alberta’s new government will raise taxes on carbon dioxide emitters starting in 2016. Via the Financial Post, the existing carbon tax will increase from $15 per metric ton to $20 per metric ton in 2016 and $30 per metric ton in 2017. The recently elected NDP government is accelerating an emissions reduction plan instituted by its Tory predecessor. Many observers believe the new regime’s policies will make it difficult for companies to operate and invest in Alberta’s oil sands.
-BP has reportedly been turned down in a bid to acquire E&P firm Penn Virginia. Via Proactive Investors, Penn has faced pressure from shareholders to sell to a firm that can more efficiently develop resources in the Eagle Ford shale — a primary focus for Penn. Penn, however, is said to have rejected the offer because the terms undervalued the company.
