Preview Newsletter
ACC PM Clips Report 9/29/17
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(ACC Mentioned) Hurricane Season is Hitting Hard at Resin Prices
Sep 29, 2017 | Plastics News
By Frank Esposito
Three of five major commodity resins saw price hikes in August, but more increases could be on the way as the industry deals with the fallout of Hurricane Harvey. -
(ACC Mentioned) Top 10 Reasons to Reject Trump’s Chemical Safety Nominee
Sep 29, 2017 | EcoWatch
By Scott Faber
Next week, a key Senate committee will consider the nomination of Michael Dourson to oversee chemical safety at the U.S. Environmental Protection Agency (EPA). -
Non-Toxic Flame Retardant Enters Market, Study Suggests
Sep 28, 2017 | Chem Info
By Empa
Chemists from Empa have developed and patented an environmentally friendly way to produce flame retardants for foams that can be used in mattresses and upholstery. -
European Commission’s Bjorn Hansen Appointed Head of Echa
Sep 29, 2017 | Chemical Watch
Echa’s management board has appointed Bjorn Hansen, head of the chemicals unit at the European Commission’s environment directorate-general, as the agency’s executive director. -
US Consumer Product Safety Commission Warns Consumers: Avoid Furniture, Kids’ Products, Mattresses, and Electronics Containing Toxic Flame Retardant Chemicals
Sep 29, 2017 | Safer Chemicals, Healthy Families
By CJ Frogozo
The US Consumer Product Safety Commission (CPSC) today published a warning to consumers, especially pregnant women and young children, to avoid kids’ products, electronics, mattresses, and home furniture that contain certain flame retardant chemicals, known as organohalogens. -
‘Armada’ of U.S. LNG Export Projects Readied as Global Markets Evolve
Sep 29, 2017 | Natural Gas Intelligence
By Carolyn Davis
The natural gas export market is on the cusp of transforming in size and scope, with the United States in ascendency as it climbs from pauper to king in a race to carry its supple supplies overseas. -
Texas Oil and Gas Regulator on Vacation as Harvey Arrived
Sep 29, 2017 | E&E Energywire
The head of Texas' oil and gas regulatory agency was on vacation in the days leading up to Hurricane Harvey, taking updates via phone and email as the agency struggled with spills at refineries and shortages at fuel stations. -
Experts Weigh In: We Need to Learn About Chemicals in Oilfield Wastewater Before Reusing it Outside the Oilfield
Sep 29, 2017 | EDF Energy Exchange
By Dan Mueller
A recent publication of the Air and Waste Management Association(AMWA) contained a number of articles by academia and industry experts about the many challenges of managing the nearly 900 billion gallons of wastewater (also called produced water) generated every year by oil and gas production. -
Shale Gale Helped Improve U.S. Energy Security Through 2015, Says Report
Sep 29, 2017 | Natural Gas Intelligence
By David Bradley
U.S. energy security risks, which reached their highest level in 2011, dramatically improved over the next four years, and the nation's burgeoning shale production had much to do with that upgrade, according to the U.S. Chamber of Commerce's Institute for 21st Century Energy. -
Former Gum Factory Workers Sue Over Exposure to Flavorings
Sep 29, 2017 | E&E Greenwire
Workers from a shuttered Wrigley gum factory in Chicago are among two dozen people suing 15 other companies involved in distributing flavoring chemicals they blame for respiratory problems. -
'Tin Can' Rail Cars Shift from Crude to Ethanol
Sep 29, 2017 | E&E Energywire
By Blake Sobczak
Ethanol shippers are filling up thousands of rail tank cars deemed unfit for hauling crude oil, according to new Department of Transportation data. -
Haze Regs, Long in the Making, See Cloudy Future Under Trump
Sep 29, 2017 | E&E Greenwire
By Sean Reilly
Updates to U.S. EPA's regional haze regulations published early this year now rank among the latest Obama-era rules to face a clouded future.
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(ACC Mentioned) Hurricane Season is Hitting Hard at Resin Prices
Sep 29, 2017 | Plastics News
By Frank Esposito
Three of five major commodity resins saw price hikes in August, but more increases could be on the way as the industry deals with the fallout of Hurricane Harvey.
The most immediate impact of the storm was the pushing through of a 3-cent-per-pound polyethylene increase that was thought to be unsuccessful for the month. But Harvey's Aug. 25 arrival, and subsequent rains and flooding, took down most of the region's PE capacity, which still is working to come back on in mid-September.
Those outages tightened PE supplies and allowed the hike to take hold. Prior to that, regional PE prices had been flat for two straight months after rising 3 cents in May. Regional PE makers now are seeking hikes of 4 cents effective Oct. 1. Many resin makers also continue to operate under force majeure sales limits.
Although resin and feedstock plants are reporting only isolated production problems, more concern is centering on transportation and deliveries. The IHS Markit consulting firm said in a Sept. 13 report that the three major railroads in the area have effectively restored service on their networks, but delays linger.
One resin supplier told Plastics News that the impact of Harvey and of Hurricane Irma, which hit Florida on Sept. 8, has caused "a nationwide shortage of available truck-load and bulk-truck capacity." Road freight demand is returning to Houston, according to IHS Markit, as immediate emergency relief gives way to longer-term rebuilding needs, which is putting more pressure on already rising truck rates.
The most impacted PE production site appears to be Chevron Phillips Chemical's Cedar Bayou plant in Baytown, Texas, which makes high, low and linear low density PE. The PetroChem Wire consulting firm said that site experienced damaging floods as the nearby bayou crested several feet above what is considered a 500-year flood event.
It added that the plant, which makes numerous blow molding and rotational molding grades, is not expected to restart until at least November. Other market sources also told Plastics News that the Cedar Bayou plant had been impacted. Officials with CP Chem in The Woodlands, Texas, declined to comment.
U.S./Canadian PE sales were mixed in the first seven months of 2017, according to the American Chemistry Council. Sales of high density PE in the region were down 3 percent in that period, as a domestic sales gain of almost 4 percent was wiped out by a drop of 26 percent in export sales.
Low density PE sales in the region ticked up 2 percent in those seven months, with a domestic sales drop of 1 percent negated by an export sales gain of more than 11 percent. In linear low, regional sales grew almost 2 percent as domestic growth of more than 4 percent was lowered by a 6 percent drop in export sales.
PP creeps up
A polypropylene increase of 0.5 cents for August was the second consecutive hike by that amount. Prices for the material had been flat in June after sliding down 7.5 cents in May and 6 cents in April.
Regional PP production also was mostly down after the storm, but soon recovered. Many units, however, may have difficulty sourcing propylene monomer feedstock. Polymer-grade propylene prices already are up 7 cents for September, leading market watchers to expect some level of increase for PP as well.
North American PP sales were not robust in the first seven months of 2017, increasing almost 1 percent vs. the same period in 2016. Domestic PP sales grew 2 percent in that period, while export sales slipped 27 percent.
PET bottle resin climbs 2.5 cents
The 2.5-cent PET increase for August followed a 1.5-cent hike in July. Both moves were the result of tighter supplies and slightly higher feedstock costs, according to market watchers contacted by Plastics News.
Prices for PET bottle resin now have increased for three straight months, including a 0.5 percent rise in June. Prior to that, prices had declined for three straight months, totaling 3.5 cents in decreases.
Both the PP and PET price increases were in place for August before the storm hit.
PVC, PS flat
Regional PVC and polystyrene resin prices were flat for August, but that could be changing in September and October. PVC makers are attempting to raise prices by 5 cents per pound Oct. 1, with PS makers trying a 3-cent move Sept. 1.
PVC production and feedstocks were more affected by the storm than those in PS, although some production of PS feedstock benzene was impacted.
Regional PVC prices in August were flat for the fifth consecutive month. This flat spell followed a two-month stretch in which prices increased a total of 6 cents per pound.
U.S./Canadian PVC sales in the first seven months of 2017 were up more than 1 percent. Domestic sales grew more than 3 percent but were eclipsed by an export sales drop that also was more than 3 percent.
PS prices in North America were flat in August after tumbling 4 cents in July and being flat in June. The July dip marked the third time in four months that regional PS prices had declined.
The July PS slide was tied to a 20-cent drop in price for benzene feedstock, which is used to make styrene monomer. Benzene prices moved down only 2 cents in August, which wasn't enough to move PS resin prices.
North American PS sales fell almost 1 percent in the first seven months of 2017. A domestic sales loss of more than 1 percent was softened a bit by a boost of 17 percent in export sales.
http://www.plasticsnews.com/article/20170929/NEWS/170929888/hurricane-season-is-hitting-hard-at-resin-prices
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(ACC Mentioned) Top 10 Reasons to Reject Trump’s Chemical Safety Nominee
Sep 29, 2017 | EcoWatch
By Scott Faber
Next week, a key Senate committee will consider the nomination of Michael Dourson to oversee chemical safety at the U.S. Environmental Protection Agency (EPA).
Here are the top 10 reasons senators should reject his nomination.
1. He's industry's favorite scientist for hire.
For decades Dourson has been the go-to guy for Monsanto, Dow, Koch Industries and other companies.
2. He's argued for weak safety standards.
Dourson has consistently twisted the science to argue for chemical safety standards far weaker than standards proposed by the EPA and other federal or state environmental health agencies.
3. He greenwashed DuPont's Teflon chemical.
Dourson argued for a standard for PFOA, the cancer-causing compound once used to make Teflon, that was more than 2,000 times weaker than the safety standard recommended by the EPA.
4. He greenwashed rocket fuel.
Dourson also argued for a weaker safety standard for perchlorate. It is a jet fuel chemical that harms the development of babies' brains.
5. He greenwashed 1,4-dioxane.
Dourson argued for a standard for 1,4-dioxane that was 1,000 times weaker than the safety standard recommended by the EPA. The likely carcinogen is found in drinking water and cosmetics.
6. He greenwashed the "popcorn lung" chemical.
Dourson argued for a safety standard for diacetyl, the food additive that gives microwave popcorn its buttery flavor and causes lung disease in workers, that was 40 times weaker than the safety standard recommended by the National Institute for Occupational Safety and Health.
7. He defended a pesticide that harms kids' brains.
On behalf of Monsanto and Dow, Dourson argued in defense of chlorpyrifos, a controversial crop chemical that lowers IQ. He also sought weaker standards for other pesticides linked to cancer.
8. The EPA will review many of the chemicals he's greenwashed.
If confirmed, Dourson will oversee EPA reviews of chemicals he's previously reviewed for industry interests. This includes TCE, 1,4-dioxane, chlorpyrifos and 1-brompropane.
9. He downplayed the risks of second-hand smoke.
Dourson defended his work for the tobacco industry by saying: "Jesus hung out with prostitutes and tax collectors."
10. He created a bogus chemical website for kids.
With funding from the American Chemistry Council, Dourson created a "Kids + Chemicalsafety" website to downplay the risks chemicals pose to children. The site has since been taken down.
https://www.ecowatch.com/trump-chemical-safety-nominee-2490584414.html
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Non-Toxic Flame Retardant Enters Market, Study Suggests
Sep 28, 2017 | Chem Info
By Empa
Chemists from Empa have developed and patented an environmentally friendly way to produce flame retardants for foams that can be used in mattresses and upholstery. Unlike previous flame retardants made of chemicals containing chlorine, the new material is non-toxic and effective. Two of Empa's industrial partners are now launching the innovation on the market.
EDA-DOPO, the environmentally friendly flame retardant developed at Empa, is going into serial production. The newly developed, particularly economic and ecological synthesis method, which also simplifies the production of other DOPO derivatives, is a crucial part of this success story. The company Metadynea Austria GmbH will manufacture the material and, if there is sufficient demand, the global FoamPartner Group will use it to produce flame-retardant polyurethane (PU) foams for upholstery and mattresses. Since the new method of production of DOPO derivatives was patented in June 2017, Metadynea Austria GmbH has already produced around 1.5 tons of the flame retardant.
Non-Toxic
This constitutes the first step towards replacing conventional, halogenated flame retardants, which are sometime toxic and give off toxic gases in the event of a fire. Empa's EDA-DOPO -- a derivative of the familiar flame retardant DOPO (9,10-dihydro-10-oxa-phosphaphenanthreneoxide) -- does not emit these toxins. Furthermore, the foam material containing this flame retardant satisfies the highest flame retardant classification (UL 94 HB).
Fire retardant expert Sabyasachi Gaan developed EDA-DOPO at Empa in a two-year research project within the scope of the Eureka SUSPUR project. It was initiated by the FoamPartner Group, which was looking to expand its range with environmentally friendly flame retardant PU foams. The company is currently the sole license holder for EDA-DOPO for PU applications. The substance is manufactured exclusively by Metadynea Austria GmbH.
Mandatory for public areas
Flame-retardant upholstery is especially mandatory for areas where many people gather: Planes, trains, buses, hotels and restaurants. Flame retardants prevent materials from being ignited, such as with cigarettes or by vandals. However, the environmental standards keep getting stringent here, too. The evaporation of flame retardants into the ambient air or atmosphere is undesirable and the toxic gases that can form during a fire are also being accepted less and less. Many countries have already banned halogenated flame retardants. Consequently, there is a growing need for modern, harmless alternatives all over the world.
Although foam production with the new flame retardant is already underway, products containing EDA-DOPO will not be on sale just yet; the flame retardant is currently being certified in accordance with the European chemical regulation REACH. The foam samples produced are presently undergoing diverse flame tests to enable the new flame-retardant foams to hit the global markets as quickly as possible once they obtain their REACH certification.
Why do we need flame retardants?
We encounter PU foams in many places in everyday life: They are in the insulation on house façades, fridges, car seats, living room sofas and shoe soles. PU is composed of carbon, hydrogen, nitrogen and oxygen atoms. The air trapped in the foam's pores also contains oxygen. Therefore, the foam -- like most organic polymers -- is highly flammable and, depending on the requirements, needs to be equipped with flame retardants to curb the risk of fire. In recent decades, foam manufacturers tended to use chlorinated phosphates as flame retardants -- low-priced substances that do not disrupt the production process.
However, many of these chlorinated flame retardants are toxic and can eventually evaporate from the foam and get into the ambient air. As a result, these substances are already banned in many countries. Industry is thus on the lookout for environmentally friendly, harmless alternatives. And it's big business: Every year, around 20 million tons of PU foam are produced worldwide, the majority of which is supposed to be equipped with flame retardants.
EDA-DOPO satisfies economic and ecological criteria with flying colors and has achieved the highest flame retardant classification UL 94 HB. The flame retardant is also highly compatible with the production process for PU foams: It mixes well with polyol, a base material of PU foam, and forms a stable dispersion. The production process results in a foam with the solid flame retardant EDA-DOPO finely distributed in its pores.
https://www.chem.info/news/2017/09/non-toxic-flame-retardant-enters-market-study-suggests
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European Commission’s Bjorn Hansen Appointed Head of Echa
Sep 29, 2017 | Chemical Watch
Echa’s management board has appointed Bjorn Hansen, head of the chemicals unit at the European Commission’s environment directorate-general, as the agency’s executive director.
Mr Hansen replaces Geert Dancet, who has held the position since the agency's inception in 2007. Mr Hansen will serve a standard five-year term in office, beginning in January 2018 however this can be extended by Echa’s Management Board for a further five years.
Mr Hansen became head of the Commission’s chemicals unit in 2003. From 2007 to 2008, he was seconded to Echa as the director of operations and has been involved in the development of REACH from the beginning.
In a statement to Chemical Watch, Mr Hansen said that being selected as the second executive director of the agency is an "honour".
"The agency has a good reputation, its staff has performed very well in getting the legislation entrusted and implemented. I am well aware of the many challenges that lie ahead for me but I'm also confident that with the quality of staff in Helsinki and experts coming to Echa's committees we will, together, live up to them", he said.
Henrik Søren Larsen, deputy chairman of Echa’s management board and head of the Danish EPA's chemicals unit, said: "We selected an excellent candidate and look forward to hearing the European Parliament Committee’s views. Our assessment benefited from the very good job the Commission did to provide us with such high quality candidates".
Marco Mensink, director general of Cefic, the European Chemical Industry Council, said that Mr Hansen "is a well-known and highly regarded expert with decades of first-hand experience in developing EU chemical legislation. We are confident that his expertise and demonstrable ability in providing outstanding leadership will help fulfil the agency’s mandate during his term in the office. We look forward to working with Mr. Hansen."
Cefic also commended Mr Dancet for "having done an excellent job in building a strong organisation and enhancing the implementation of the EU chemical legislation over the past ten years".
Mr Dancet previously served in the European Commission’s industry directorate-general for more than 20 years. He became head of the directorate-general’s REACH unit in 2004 to lead negotiations leading up to adoption of the Regulation two years later.
As part of the appointment procedure, Mr Hansen will make a statement before the European Parliament and answer questions from its Members. Mr Hansen is scheduled to sign his contract during the Management Board meeting of 14-15 December.
https://chemicalwatch.com/59612/european-commissions-bjorn-hansen-appointed-head-of-echa
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Sep 29, 2017 | Safer Chemicals, Healthy Families
By CJ Frogozo
The US Consumer Product Safety Commission (CPSC) today published a warning to consumers, especially pregnant women and young children, to avoid kids’ products, electronics, mattresses, and home furniture that contain certain flame retardant chemicals, known as organohalogens. The CPSC is also calling on manufacturers to eliminate this toxic class of chemicals in these products, and for retailers to obtain assurances from suppliers that products don’t contain organohalogens. The warning comes one week after the agency voted to move forward with a rulemaking to ban the chemicals in these products.
“We applaud the CPSC’s action today to warn consumers about these harmful chemicals while the agency moves forward with a ban,” said Eve Gartner, Earthjustice co-counsel. “Consumers can’t shop their way out of the problem, which is why a ban is needed. Today’s warning is a good interim step.”
“The warning issued today by the CPSC will help protect consumers from chemicals that pose a serious health threat,” said Rachel Weintraub, legislative director and general counsel at Consumer Federation of America and co-counsel on the petition. “However, until these chemicals are banned, consumers still need to be cautious and shop with care.”
Organohalogen chemicals have been associated with serious human health problems, including cancer, increased time to pregnancy, decreased IQ in children, impaired memory, learning deficits, hyperactivity, hormone disruption and lowered immunity.
The complete text of the CPSC’s guidance can be found on the CPSC website.
Experts caution, however, that it is impossible for consumers to know for sure if products they buy are free of organohalogen flame retardants because in most cases manufacturers aren’t required to disclose their use of the chemicals.
Recent testing of TVs found 11 of 12 TVs tested contained flame retardant chemicals, some in concentrations as high as 33%. Testing results are available at http://www.toxicfreefuture.org/flame-retardants-tvs
“Products containing organohalogen flame retardants are a source of health risk to our families,” said Erika Schreder, primary author of the study and Science Director for Toxic-Free Future. “The CPSC is right to warn consumers, especially those most vulnerable to exposure, to avoid products containing these harmful flame retardants. The chemicals can leach out of the products and contaminate our homes, exposing our families.”
Reports filed by makers of kids’ products with the state of Washington show widespread presence of flame retardants in kids’ products. In the last six months, manufacturers filed over 400 reports of kids’ products containing flame retardants, including in toys, games, art supplies, and clothing and other textiles.
“Parents should be able to buy products for their kids without worrying they contain toxic flame retardants. While consumers wait for the CPSC rulemaking to proceed, states must continue to adopt policies to restrict the use of these chemicals,” said Sarah Doll, National Director of Safer States.
“The CPSC’s new guidance should be a wake-up call for retailers across the country,” said Mike Schade, Mind the Store Campaign Director for Safer Chemicals Healthy Families. “Big retailers like Best Buy and Costco should heed the CPSC’s guidance and require suppliers to stop adding toxic flame retardants to electronics, children’s and infant products and others as soon as possible. Retailers can play an important role in following the CPSC’s guidance by ensuring the products they sell are free of these unnecessary dangerous chemicals.”
Environmental health experts offer these tips for consumers when shopping for organohalogen-free products:
Check furniture labels. When shopping for furniture, consumers should CHOOSE furniture labeled “CONTAINS NO ADDED FLAME RETARDANTS.”
Check kids’ product labels. Make sure any children’s products you or your childcare provider use are not labeled as meeting the California TB 117 flammability standard (these products likely contain flame retardants in the foam).
Avoid kids’ products made with polyurethane foam.
Dust and wash hands regularly. To reduce exposure from products in your home, cleanliness counts! Wash hands, especially those of young children, often, to keep dust from attaching to food or fingers and being consumed. Regularly wet dust and wet mop to reduce dust, and use a vacuum with a HEPA filter.
The CPSC’s action results from a Petition submitted in June 2015 by the nonprofit law firm Earthjustice and Consumer Federation of America on behalf of: American Academy of Pediatrics, American Medical Women’s Association, Consumers Union, Green Science Policy Institute, International Association of Fire Fighters, Kids In Danger, Dr. Philip J. Landrigan, League of United Latin American Citizens, Learning Disabilities Association of America, National Hispanic Medical Association, and Worksafe.
http://saferchemicals.org/newsroom/us-consumer-product-safety-commission-warns-consumers-avoid-furniture-kids-products-mattresses-and-electronics-containing-toxic-flame-retardant-chemicals/
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‘Armada’ of U.S. LNG Export Projects Readied as Global Markets Evolve
Sep 29, 2017 | Natural Gas Intelligence
By Carolyn Davis
The natural gas export market is on the cusp of transforming in size and scope, with the United States in ascendency as it climbs from pauper to king in a race to carry its supple supplies overseas.
A panel of gas experts last Monday rhapsodized about the stunning makeover for liquefied natural gas (LNG) markets at the Weather & Price Tealeaves IV conference in Houston. Capra Energy Group Managing Director Tamir Druz discussed the outlook for LNG with EBW Analytics CEO Andy Weissman and IntercontinentalExchange Inc.’s JC Kneale, vice president of North American power and natural gas liquids sales.
“What’s happening now is truly transformational, both in size and scope,” Druz said of global LNG expansion. This is the second year in a row for the “biggest ever growth spurt,” both percentage-wise and in absolute terms.
At least 140 million metric tons/year (mmty) of LNG capacity is forecast to come onstream worldwide over a five-year period from 2016 through 2020, versus a base of 250 mmty at the end of 2015, Druz said.
Adding more than 50% of LNG capacity over a relatively short period of time is the “likes of which we have never seen before,” he said. “To my knowledge, there’s only one year prior to this period where more than 20 mmty was added in a single year.”
About half of the new LNG capacity, nearly 70 mmty, is slated to be cargoes from U.S. shores. At that level, the United States would be propelled “from a position of really producing trivial amount of LNG” via the ConocoPhillips Kenai project in Alaska, “to a situation where it will become the No. 2 or No. 3 producer,” Druz said.
Kenai LNG, which is set to be mothballed this fall, was the first and for a long time the only export plant in the United States.
U.S. ascendency, joining in step Australia’s surging export capacity, will become “real rivals” to long-time world global leader Qatar.
The question is, will worldwide LNG demand keep pace?
“Yes, it can, a resounding yes, it can,” Druz told the audience. There are about 40 import markets, with the top five -- Japan, South Korea, China, India and Taiwan -- collectively consuming about 70% of LNG worldwide today.
“South Korea may pose a much larger bullish risk than almost anyone expects,” Druz said. South Korean President Moon Jae-in “hates nuclear and coal, and he’s done more than anyone expected to reduce reliance on both. Natural gas is the only place to go, and if his plans materialize, we could see a major spurt in South Korean demand growth...We see that as a real upside risk for demand and pricing.”
The demand worldwide also is broader, and “very deep with the involvement of big players,” Druz said. Pricing is better, too with the fundamentals “perhaps rosier than people expected coming into the LNG supply wave.”
LNG prices appeared unable to find a floor following the sharp price declines in 2014 and 2015, but a $5.00/MMBtu level has served as a soft floor since 2016, Druz said.
“Seasonality has intensified, with winter premiums exceeding the levels seen in recent years,” and longer term structural contango has continued to strengthen.
LNG may be a global commodity, but customers increasingly are sourcing cargoes closer to home, according to Capra research. For example, Australia is building substantial market share in northeastern Asia from Qatar and other Persian Gulf suppliers. The United States quickly is becoming a supplier of choice to Latin America.
“This dynamic should intensify as existing long-term contracts expire, and as destination clauses begin to disappear,” Druz said. “No one disputed that LNG cargoes could be sent from one end of the world to another. Now the question is, should LNG cargoes be sent from one end of the world to another?”
Domestic gas exports likely will have a “transformational impact on global gas and electricity markets,” according to Weissman. “Over the next three to four years, more often than not, the impact will be to drive natural gas and electricity prices lower, but volatility could be extreme, starting almost immediately.”
Weissman “profoundly” believes the global markets are on the “cusp of one of the most significant impacts on gas and electricity markets.” U.S. gas prices today are driven by weather and “more important, pipeline infrastructure, which is critically important. It affects decisions made by U.S. producers as to how rapidly to grow production…”
However, what’s apparent to Weissman is that over the next few years demand for U.S. LNG exports “will rival and surpass weather as the core driver of electricity and U.S. gas prices.”
Export capacity “is about to explode.”
No LNG was traded in the United States during 2016, he noted. “We now trade for 2.8 Bcf/d currently. That’s now, that wasn’t true three weeks ago. If you go back four months ago or so, it was more like 1.4 Bcf/d. We’re in the very early stages of a very steep ramp-up to 12 Bcf/d by the beginning of 2020…
“This isn’t theoretical, like ‘maybe’ it could happen. These are projects being built now, fully subscribed, fully funded and money is sitting in the bank. All the projects will be finished...We’ve never added that kind of capability.”
Domestic exports face competition, but U.S. gas can be delivered at a lower cost than about anywhere in the world. And appetites are huge.
“U.S. developers are chomping at the bit to build another 24-plus trains,” Weissman said. “We will be the future supplier of natural gas to the world. The bottom line is, the United States is one of the potentially lowest sources of incremental gas supply.”
Domestic projects are structured with tolling agreements, making it a more attractive place to build. U.S. LNG developers have less risk, as they build the liquefaction plans and the docks, then secure LNG buyers.
To illustrate how much more viable domestic projects are, Weissman noted that outside the United States, no final investment decisions for LNG export terminals have been issued since 2015. In the United States, however, “there’s been an armada of additional export projects looking to go forward.”
On the contracting side, ICE has seen a “pretty incredible growth curve this year, which frankly has been a long time coming,” said Kneale. “The first contract was in 2010 and it then spent six years languishing…
“It was not a successful contract to our mind. It was proving pricing, but as an exchange, we make money when it trades rather than being a free pricing service.” Last year, however, ICE “saw something was up.”
New participants not considered traditional LNG players “began taking positions, buying cargoes without production, selling without production,” Kneale said. “It’s a healthy feature of this new market.”
This year the market has embraced LNG futures trading, with growth in overall LNG trade, particularly spot and short-term transactions, and heightened interest in protecting margins and managing price risks. The competition is growing and the spreads are narrowing.
The Gulf Coast still has an element of a “lot of hurry up and wait,” Kneale said. “We can get accurate prices responsibly, but we just need more activity in the Gulf Coast to mirror what’s happening globally.”
Kneale is working on expanding the global outlook as gas increasingly leaves U.S. shores.
“What we do see happening more and more is customers thinking about the front end of the curve. There are big reactions to price moves...because certain folks are putting bets in the options market…”
Longer term decisions about LNG cargoes are being made, and new infrastructure is changing the way hedges historically have been built. “But anecdotally speaking, production zones are shifting.”
Dominion has become “the largest location for regional gas now in the United States, even challenging AECO in North America,” Kneale said. The Houston Ship Channel also “has seen massive growth this year, and that wasn’t immediately obvious.”
The Mexico gas export market also is evolving, and “over time, that will grow out with pricing points.”
http://www.naturalgasintel.com/articles/111905-armada-of-us-lng-export-projects-readied-as-global-markets-evolve
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Texas Oil and Gas Regulator on Vacation as Harvey Arrived
Sep 29, 2017 | E&E Energywire
The head of Texas' oil and gas regulatory agency was on vacation in the days leading up to Hurricane Harvey, taking updates via phone and email as the agency struggled with spills at refineries and shortages at fuel stations.
Kimberly Corley, who stepped down last week as the executive director of the Texas Railroad Commission — the chief enforcement agency for the state's oil and gas interests — was listed as being on vacation for 11 days in a two-week span around the storm, according to a work calendar obtained by the Associated Press.
She had no scheduled calls or meetings in the two-day lead-up to Harvey's arrival, though the calendar did list calls for hurricane updates on the Friday and Saturday after the storm made landfall.
Corley said she had been at Big Bend National Park during the period when she was on vacation. She added that she had been "active and available," and that her performance during Harvey was never discussed in a pre-resignation meeting with the agency's chairwoman. The agency has not said why Corley resigned.
https://www.eenews.net/energywire/2017/09/29/stories/1060062063
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Sep 29, 2017 | EDF Energy Exchange
By Dan Mueller
A recent publication of the Air and Waste Management Association(AMWA) contained a number of articles by academia and industry experts about the many challenges of managing the nearly 900 billion gallons of wastewater (also called produced water) generated every year by oil and gas production. This wastewater is not only very salty but also contains a number of chemicals (many toxic) and potentially radioactive material.
The majority of this wastewater is disposed in deep underground wells to minimize the risks of it coming into contact with humans or the environment (though leaks and spills at the surface are still a big concern). But in hope of lowering costs, in recent years industry has been trending toward finding other ways to either dispose of or recycle this waste – in part because demand for water resources is increasing in drought prone areas and because disposal wells have been linked to a rise in earthquakes.
The articles in AWMA’s magazine suggest that recycling oilfield wastewater to complete new wells is the most viable alternative to traditional disposal methods. Definitely more viable than reusing this water in other ways outside oil and gas operations.
Hydraulic fracturing is a water intensive process. Fracturing just one well can require up to 15 million gallons of water. On the back end, every one barrel of oil produced can produce up to 10 barrels or more of wastewater. Consequently recycling this wastewater for hydraulic fracturing other wells can make a lot of sense.
In this latest issue, Rick McCurdy, who manages corrosion, chemicals and water with Chesapeake Energy Company, presents the various technical and economic issues with recycling oil and gas wastewater instead of disposing of it underground. He points out that recycling this wastewater replaces the need to purchase an equal volume of fresh water. Under the right conditions, this recycling “can provide a cost savings over conventional, commercial disposal, and a reduction of stress on local water availability in areas prone to drought.”
This could be a positive development in regions experiencing drought conditions, but experts are advising companies not be too eager to use this water for activities beyond the oil field – like crop irrigation, or livestock watering for example.
“Due to the high concentrations of TDS (total dissolved solids) along with other constituents of concern, reuse options of produced water outside the oil industry, such as streamflow augmentation or irrigation, will most likely require robust treatment including desalination,” according to Emily Nichols, an engineering graduate fellow in the Colorado School of Mines.
Not only is desalinating water extremely costly, in many cases we lack the data to know — with assurance — that water has been treated to reach levels that are clean enough to be used for crops or livestock.
“To answer this question, assessments of the chemical risks of reusing produced water must be undertaken,” write Dr. Dominic DiGiulio and Dr. Seth Shonkoff of the group Physicians, Scientists and Engineers for a Healthy Energy (PSE Health Energy).
Studies have found that even treated wastewater can still contain trace amounts of harmful chemicals — indicating that our current treatment technologies, especially lower cost technologies, may not be advanced enough to guarantee water quality that is truly fit-for-purpose.
Recycling within the oil field is a great idea as long as the wastewater is not spilled. But researchers argue that more disclosure about the chemicals used in hydraulic fracturing, more chemical analysis, improved chemical monitoring technology and better toxicity assessments are needed before expanding reuse options outside of the oilfield. Without these advancements, experts agree reusing wastewater for non-industry related purposes is both cost-prohibitive and exceptionally risky.
http://blogs.edf.org/energyexchange/2017/09/29/experts-weigh-in-we-need-to-learn-about-chemicals-in-oilfield-wastewater-before-reusing-it-outside-the-oilfield/
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Shale Gale Helped Improve U.S. Energy Security Through 2015, Says Report
Sep 29, 2017 | Natural Gas Intelligence
By David Bradley
U.S. energy security risks, which reached their highest level in 2011, dramatically improved over the next four years, and the nation's burgeoning shale production had much to do with that upgrade, according to the U.S. Chamber of Commerce's Institute for 21st Century Energy.
The risk index score fell to 77.9 in 2015, the lowest level since 1996, according to the 2016 edition of the group's Index of US Energy Security Risk, which was released Thursday.
The index employs 37 different energy security metrics in four major areas of risk: geopolitical, economic, reliability, and environmental. A lower index score indicates a lower level of risk. Since 2011, the total risk index score has dropped by 25 points. Risk was down in 19 of the 37 metrics in the latest study, and increased in only five metrics.
"That this lowering of risk occurred at the same time U.S. energy companies were using hydraulic fracturing, horizontal drilling, and advanced seismic imaging to coax unprecedented volumes of oil and gas from shale formations is hardly a coincidence," according to the report. "The beneficial effects of this energy revolution have rippled throughout the entire economy, lowering imports, improving our balance of trade, creating good-paying jobs, lowering energy prices and expenditures, and giving a still-ailing economy a much needed shot in the arm."
Bowing to calls to make federal lands and offshore areas off limits to oil, natural gas and coal extraction would do significant economic damage, the report warns.
"Federal lands are the source of a significant, if declining, share of America's energy production. We found that if policies restricting access to these federally-controlled resources were to be enacted, about one-fourth of all U.S. oil, natural gas, and coal production would be halted at a cost of $11 billion in lost royalties, 380,000 jobs, and $70 billion in annual GDP [gross domestic product]."
The impacts would be felt disproportionately in a few states, the researchers found. Wyoming would lose $900 million in annual royalty collections; New Mexico would lose $500 million; and five states -- Colorado, Texas, Louisiana, Mississippi and Alabama would lose a combined 160,000 jobs.
Banning the still controversial hydraulic fracturing (fracking) would also be detrimental to the economy, the researchers said.
"We estimate that if a fracking ban were implemented, by 2022 natural gas, crude oil and wholesale electricity prices would increase by more than 400%. Many of the downstream industries that now rely on inexpensive natural gas would look elsewhere for supplies of feedstock and fuel, and some would close shop and move operations overseas."
http://www.naturalgasintel.com/articles/111902-shale-gale-helped-improve-us-energy-security-through-2015-says-report
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Former Gum Factory Workers Sue Over Exposure to Flavorings
Sep 29, 2017 | E&E Greenwire
Workers from a shuttered Wrigley gum factory in Chicago are among two dozen people suing 15 other companies involved in distributing flavoring chemicals they blame for respiratory problems.
The lawsuit was filed in Illinois' Cook County Circuit Court. Among the plaintiffs is Gwendolyn Carter, a former employee of the Wm. Wrigley Jr. Co. gum plant that closed a decade ago. She blames exposure to chemicals including diacetyl and acetyl propionyl for her reactive airway disease and occupational asthma. Wrigley itself is not named as a defendant.
The National Institute for Occupational Safety and Health last year issued recommendations on decreasing the risk of respiratory problems from workplace exposure to diacetyl, used in flavoring a variety of foods and beverages.
The most infamous respiratory illness associated with flavoring chemicals is "popcorn lung," linked to popcorn manufacturing plants, according to the federal Occupational Safety and Health Administration.
"Although much of the research and attention has been focused on butter flavorings, employees who are involved in the use or manufacture of other types of flavorings, such as strawberry, caramel, vanilla, and butterscotch, may also be at risk," OSHA says on its website.
Exposure to these chemicals can lead to a variety of ailments, including chronic cough, emphysema, fatigue, severe lung impairment and shortness of breath.
Wrigley parent Mars Wrigley said all its ingredients comply with the law. Defendants include McCormick & Co. and Kraft Foods Group Inc., now Mondelez International Inc. The companies either could not be reached or would not comment on the lawsuits.
https://www.eenews.net/greenwire/2017/09/29/stories/1060062129
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'Tin Can' Rail Cars Shift from Crude to Ethanol
Sep 29, 2017 | E&E Energywire
By Blake Sobczak
Ethanol shippers are filling up thousands of rail tank cars deemed unfit for hauling crude oil, according to new Department of Transportation data.
Type DOT-111 cars still serve as the workhorses of the ethanol industry despite a history of deadly train derailments and fires tied to their flimsy design.
Oil firms steadily abandoned using the least-protected, non-jacketed tank cars from 2013 to 2016, according to a report released last Friday from DOT's Bureau of Transportation Statistics. Ethanol companies added nearly 4,000 DOT-111s to the tracks in the same period, devoting 27,597 of the cars to moving the fuel last year.
"They're thin-skinned — I call them tin cans on wheels," said Fred Millar, a hazardous materials consultant who has worked with environmental groups in the past. "The ethanol industry is extremely arrogant about continuing to use the least-safe tank cars. ... They have a continentwide distribution network that goes through everyone's communities, and they just are saying, 'We're going to take these risks for a longer time.'"
Kelly Davis, director of regulatory affairs at the Renewable Fuels Association, which represents ethanol producers, pointed out that the overwhelming majority of hazardous materials shipped by rail — more than 99.999 percent in 2016 — reach their destinations safely. She added in an emailed response to questions that the BTS statistics show the rail tank car industry and shippers "are on target for compliance" with new tank car regulations, which accounted for the time it would take to build new cars to replace the old DOT-111s.
The National Transportation Safety Board has warned about defects in the DOT-111 for decades, but efforts to update tank car standards didn't gain traction until after a 2009 ethanol train crash in Cherry Valley, Ill., that killed one bystander and injured nine others in a fire. NTSB said the "inadequate design" of the tank cars contributed to the severity of the accident.
Four years later, a train carrying crude oil in the same type of car derailed and burst into flames in downtown Lac-Mégantic, Quebec, killing 47 people.
That disaster — and subsequent crude oil train derailments and explosions — drove regulators in the U.S. and Canada to beef up tank car safety rules, requiring new cars to have thicker shells, sturdier pressure relief valves and a host of other requirements. Congress also weighed in, tweaking deadlines for retiring older, riskier DOT-111 tank cars via the Fixing America's Surface Transportation Act, which President Obama signed into law in December 2015.
The FAST Act gave crude shippers until January 2018 to stop using DOT-111s altogether. Ethanol companies won an extra five years to phase out the cars amid concerns that the pace of tank car manufacturing could not keep up with demand.
At the time, some rail industry analysts speculated that fuel shippers would turn their backs on the DOT-111 ahead of schedule, rather than expose themselves to the known safety risks and potential liability (Energywire, May 26, 2015).
Davis said falling crude oil prices and new pipeline construction contributed to that industry's rapid shift away from the DOT-111s, noting that shipments of crude oil by rail dropped in half from 2014 to 2016.
Meanwhile, ethanol-by-rail shipments ticked up from roughly 580,000 barrels per day in 2014 to 650,000 barrels per day in 2016, according to data from the U.S. Energy Information Administration.
Davis declined to speculate on the ethanol companies' plans for the DOT-111, noting that such information would be market-sensitive.
But there are hints that the industry is laying the groundwork for beating the May 2023 deadline, when shippers will no longer be allowed to rely on DOT-111s.
The Association of American Railroads, an industry group that represents major freight rail companies, reported 22,126 non-jacketed DOT-111s in ethanol service as of the second quarter in 2017, the most recent data available. That would mark a sharp year-over-year downturn in use of the cars compared with BTS data, which did not extend to this year.
BTS also said that over 2,000 rail tank cars have been retrofitted to meet new federal requirements, with the majority of those spruced-up cars moving into ethanol service.
Environmental advocates found little comfort in the statistics.
"The market for the use of these 111s ebbs and flows, but it only takes one unit train to create a disaster," said Sean Dixon, senior attorney for the Hudson River Program at New York's Riverkeeper. "While a lot of attention [was] being paid to crude oil, this ethanol issue was and remains a very real, daily occurrence, with giant ethanol unit trains rolling through towns throughout the country."
https://www.eenews.net/energywire/2017/09/29/stories/1060062119
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Haze Regs, Long in the Making, See Cloudy Future Under Trump
Sep 29, 2017 | E&E Greenwire
By Sean Reilly
Updates to U.S. EPA's regional haze regulations published early this year now rank among the latest Obama-era rules to face a clouded future.
Already the target of 11 separate lawsuits brought by states, power producers and environmental groups, the revised regulations confront further uncertainty as the Trump administration takes a timeout to review its position.
Earlier this week, the U.S. Court of Appeals for the District of Columbia Circuit approved EPA's request for a 90-day hold on legal proceedings, in part so the agency can review three reconsideration petitions brought by the state of Alaska and utilities.
In making the request, EPA said it needed the extra time to reach decisions on "which of the contested issues it will address through non-litigation alternatives, whether through granting reconsideration and commencing a rulemaking or through guidance."
The D.C. Circuit signed off on the motion Wednesday without comment; none of the plaintiffs objected to the delay, which means proposed briefing formats won't be due until shortly before Christmas.
But at the National Parks Conservation Association, which is among the environmental groups that are defending the revised regulations while challenging some provisions as inadequate, clean air counsel Stephanie Kodish said in an interview that she hoped EPA "would find it prudent to reflect on the many different stakeholder interests in play and at a minimum keeping the rule in place."
The regional haze program, authorized under the Clean Air Act, has a goal of restoring visibility to 156 national parks and wilderness areas — ranging from the Everglades National Park in Florida to the Bering Sea Wilderness in Alaska — to natural conditions by 2064.
The bulk of sulfur dioxide and other haze-forming pollutants comes from older coal-fired power plants; under the Obama administration, EPA and state regulators repeatedly clashed over the scope of cleanup measures needed. Among the challengers was EPA's current administrator, Scott Pruitt.
In his previous job as Oklahoma's attorney general, Pruitt, a Republican, waged an unsuccessful three-year legal fight to block an EPA haze reduction plan for his state.
Since Pruitt took over EPA in February, the agency has sought to roll back or delay implementation of pollution control measures in haze plans for Texas, Arkansas and Utah.
The updated regulations for the broader program, published in the Federal Register in January just before the Obama administration left office, pushed back the deadline for the next round of state haze reduction plans from 2018 to 2021.
Among other changes, they bolstered consultation requirements, with a goal of bringing National Park Service employees and other federal land managers earlier into the planning process.
The three reconsideration petitions, all filed in March, raise a potpourri of issues. Alaska, for example, charged that EPA adopted a "one-size-fits-all" strategy that fails to account for the impact of airborne dust wafting in from Russia and China.
The Utility Air Regulatory Group, a trade association, wants changes to "clearly emphasize state decision-making authority."
The group is also seeking to scrap the revised consultation requirements, saying that they "add unnecessary uncertainty and confusion to a process that previously was comparatively well-defined."
The third petition, jointly filed by Southwestern Public Service Co., Entergy Services Inc. and Cleco Power LLC, asks EPA to undo revisions related to the connection between long-term haze reduction strategies and goals used to measure "reasonable progress."
The revisions turn "the statutory scheme on its head," the power producers wrote, by requiring states to identify "reasonable progress" pollution control measures before setting the actual goals.
https://www.eenews.net/greenwire/2017/09/29/stories/1060062167
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