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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Working Their Asphalt

Working Their Asphalt

The nation’s construction industry is practically giddy by the prospect of the Administration’s proposed American Jobs Plan and the $115 billion earmarked to repair pot-holed roads and highways while building shiny new ones. But it’s one heck of a hot-diggity for our friends who produce and store asphalt. For the uninitiated, asphalt is produced from a mix of aggregates and the bitumen-rich tar sands crude that’s pipelined from our Canadian neighbors to U.S. refineries for processing. You simply can’t produce asphalt without the heavy oil. Canada currently exports 3.8 MMBPD of the stuff to the U.S. Even with the death of the Keystone XL, pipeline expansions now underway will add another 950,000 BPD of capacity to keep those pavers rolling. On the storage side, Tulsa-based Blueknight Energy is poised for a giant bump should the Plan pass. The company, which last month transitioned to a pure-play operator of asphalt terminals, operates the largest independently owned network in the U.S., with 53 terminals across 26 states and more than 8.7 MMBbls of storage capacity.

What do you think? Learn more about Reese Energy Consulting at www.ReeseEnergyConsulting.com.

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