-Shell’s agreement to buy BG Group for $70 billion has sparked speculation about a new wave of M&A megadeals in the energy sector. Via the Associated Press, oil majors may follow Shell’s lead in boosting growth through acquisitions while oil prices remain low. Analysts at Wood Mackenzie, however, say only a handful of companies have the size and resources to complete a deal of such magnitude. The most recent large-scale deal was ExxonMobil’s $31 billion purchase of XTO Energy in 2009.
-PDVSA is restarting the FCCU at its El Palito refinery near Puerto Cabello, Venezuela, following a preventative maintenance shutdown, the Oil & Gas Journal reports. Startup activities began Tuesday, but the company did not say when or why it was shut down.
-Refinery output growth in the U.S. and the Middle East has spurred demand for oil products supertankers, Reuters reports. Major traders such as Vitol, Total and Shell have already booked vessels carrying up to 1 million barrels to ship products around the globe. In the past, refiners would ship oil products to buyers in close proximity using ships carrying as little as 40,000 barrels. There are at least 11 oil products supertankers in circulation now, and sources say many more could become available as traders increase efficiency.
-A pipeline that spilled 30,000 gallons of oil into the Yellowstone River in January was split at the site of an exposed weld, according to the U.S. Department of Transportation. Via the Associated Press, DOT warned pipeline companies about potential damage from severe flooding as a result of its finding. Pipeline owner Bridger Pipeline said the break occurred along a 100-120-foot-long section of the pipeline that was exposed to the river. Bridger shut down the pipeline after the spill and restarted it in March.
-ConocoPhillips on Wednesday received approval from the federal government to export condensate. Via Reuters, the company has three stabilizers in the Eagle Ford shale with a combined capacity of 135,000 barrels per day. Other firms approved to export condensate include Shell, Enterprise Products Partners and Plains All American.
