-Analysts are predicting heightened M&A activity in the oil and gas sector as crude prices remain in the doldrums. Via FuelFix, reports from Moody’s Investors Service and Ernst & Young say oil companies that have thus far ridden out the downturn by managing costs and revising their growth strategies are now ready to pursue deals. Moody’s predicts the price of oil will remain around $55 per barrel for the remainder of 2015 and recover to $60 per barrel next year.
-Husky Energy said today it began production at its 10,000-barrel-per-day Rush Lake heavy oil thermal project in Saskatchewan. The firm expects to add 34,500 barrels per day of production from thermal projects over the next 18 months using low-risk, modular construction templates and thermal technologies. Husky's current production from thermal projects is 44,000 barrels per day.
-The EPA’s Office of the Inspector General on Thursday recommended the agency regulate the use of diesel fuel in fracking and do more to improve transparency about fracking chemicals. Via The Hill, the EPA has limited authority over fracking, but the OIG said the agency could address diesel use and chemical disclosure under the Safe Drinking Water Act.
-Kinder Morgan commissioned the second of two new 50,000-barrel-per-day condensate splitters at its Houston Ship Channel complex. The company commissioned the first splitter earlier this year. Kinder Morgan has a 10-year deal to sell all the output from the two splitters to BP.
-PPG elected Michael McGarry as its new president and CEO, effective Sept. 1. McGarry, who was appointed president and COO in March, will succeed Charles Bunch. Bunch will continue to serve as PPG’s executive chairman. McGarry is a 34-year veteran of PPG who has held leadership roles for the company in the U.S., Europe and Asia. He led PPG’s acquisitions of SigmaKalon, Consorcio Comex and AkzoNobel’s North American architectural coatings business and the separation of PPG’s former commodity chemicals business.
