-The United Steelworkers union said U.S. refinery workers could go on strike if they can’t reach an agreement with oil companies on pay raises and other contract items. Via Reuters, union and oil company negotiators met for a sixth day Monday on renewing the current contract, which expires Sunday. Refineries have trained replacement workers in preparation for a possible strike and placed trailers at their sites to house them. It would be the first nationwide refinery workers’ strike since 1980.
-New contracts signed by Enterprise Products Partners have given U.S. condensate exports a boost, Reuters reports. Enterprise is exporting 40,000 barrels per day under contracts with Petro-Diamond Singapore and Vitol. The contracts may give Enterprise a leg up over other firms waiting for U.S. government approval to export condensate.
-Meanwhile, a group of refiners who oppose lifting the U.S. ban on oil exports is clamoring for more attention from lawmakers. Via FuelFix, the CEOs of Alon USA, Monroe Energy, PBF Energy and Philadelphia Energy Solutions said in a letter to Sen. Lisa Murkowski (R-Alaska) the issue of oil exports is distinct from other energy issues because it is less well understood. The executives said American refiners have created thousands of “long-term, good-paying jobs” by replacing exported crude with domestically produced light oil.
-Senate Democrats on Monday temporarily blocked a bill that would expedite approval of the Keystone XL pipeline project. Via the Los Angeles Times, several Democrats who support the bill said they were protesting the “strong-arm tactics” of Senate Majority Leader Mitch McConnell (R-Ky.). Another vote may be attempted at a later date. The White House has said President Obama would veto the bill.
-The recent consolidation of Regency Energy Partners by Energy Transfer Partners could pave the way for more deal making in the energy sector, Bloomberg reports. Analysts believe more pipeline companies could consolidate as they struggle with low oil and gas prices and burdensome debt loads. Furthermore, midstream assets have held their value better than drilling land and equipment. Fund manager John Olson said Buckeye Partners, NuStar Energy and World Point Terminals could be favorable acquisition targets because much of their cash flow comes from contracted fees.
