Brrrrrrr…

Brrrrrrr…

Is a cold war brewing between Canada and the U.S. because it’s feeling a might chilly these days. Reese Energy Consulting today is following the latest headlines from our northern neighbors who are having a rough go of trying to replace old or build new pipelines that connect the two countries. Alberta-based Enbridge in June scored a court win to complete rehab construction on a 337-mile segment of Line 3. Upon replacement by year’s end, Line 3 will flow 760 MBPD of crude from Canada to N.D., Minn., and Wisc., refineries. The company’s Line 5 project, however, faces mounting opposition to replace dual pipelines under Mich.’s Straits of Mackinac that flow 540 MBPD of light crude, synthetic crude, and NGLs. Line 5 has operated without incident at the Straits of Mackinac for more than 65 years. Turning to Calgary’s  TC Energy and its long-beleaguered Keystone XL project, the company has taken an extraordinary step to recoup $15 billion in damages from the U.S. government after the new Administration revoked a key permit to build the pipeline. TC Energy now has filed a notice of intent to begin a legacy NAFTA claim.

What do you think? Learn more about REC and our energy expertise at www.ReeseEnergyConsulting.com.

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Let’s Go Dutch

Let’s Go Dutch

​After nine long years, the Dutch Caribbean island of Aruba is growing closer to realizing a refinery once again to supply gasoline to a populace in paradise. Following U.S. sanctions in 2006 on neighboring Venezuela (which until last year controlled the facility), the 235,000 BPD Aruba Refinery and Terminal complex has sat idle since 2012. Reese Energy Consulting today is following the latest updates from Aruba and a Calif.-based consortium of investors that has proposed a $3.5 billion plan to restart the island’s sole refinery. But only temporarily before a complete demolition later this year and new rebuild by 2024. Meanwhile, Aruba’s government-owned refining company is ready to seal a deal with Houston-based Eagle LNG to build a small-scale LNG import terminal at the same complex, which could also power the refinery and even become an export hub for U.S. LNG across the Caribbean basin. Which is exactly where we all should be sun-worshipping today.

What do you think? Learn more about Reese Energy Consulting and our range of natural gas and LNG services at www.ReeseEnergyConsulting.com.

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Baby, You Can Drive My Car. You Just Can’t Sit in It.

Baby, You Can Drive My Car. You Just Can’t Sit in It.

We don’t typically sit around discussing the state of the automobile industry, but this latest news has earned our attention. With the shutdown last month of Gulf Coast petrochem plants, car makers face a new headache that threatens to slow or even halt production starting as early as next week. REC today is following Automotive News, which reports vehicle plants now are dealing with a critical shortage of refined products used to make plastics, rubber, and special fibers. Of particular concern is propylene oxide—the raw material in polyurethane foam used to make vehicle seats. Last year’s cuts in automobile production meant less demand for propylene oxide, which then meant Texas plants stopped producing it for a stretch. Factor in a quicker-than-expected demand recovery topped with an unprecedented winter storm, and you have all the ingredients for no ingredients available. The looming scarcity has at least one auto exec predicting the problem will be larger than the shortage of microchips.

What do you think? Learn more about REC at www.ReeseEnergyConsulting.com.

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