Producing LNG is an energy intensive task. Cooling anything down to -260°F takes a lot of power. ExxonMobil wants to make the process as efficient as possible. Here's how they did just that, from an article on ExxonMobil's Energy Factor website. It takes a lot of investment and energy to build and operate LNG plants. This reality has prompted ExxonMobil to work with some of the world’s best turbine manufacturers, including GE, Mitsubishi and Siemens, to develop gas turbines better suited to producing LNG with industry-leading low emissions. The results are “LNG-ready” turbines that … [Read more...]

After losing cash for two years, and cutting its dividend in 2015, Anglo American surprised shareholders this morning. Management had told shareholders it would try to reinstate the dividend at the end of 2017, but thanks to surging profits, the board of directors was able to pay out a dividend for the first half instead. This is a sign of confidence from one of the world's largest miners. Scott Patterson reports: In a surprise move, Anglo American reinstated its dividend for the first half after having suspended payouts in 2015. The company had previously said it planned to deliver dividends … [Read more...]

Soon, oil companies may pump more crude in America than they ever have before. The U.S. may produce more than 10 million barrels a day by early next year. Bradley Olson and Alison Sider report: Easy Wall Street cash is leading U.S. shale companies to expand drilling, even as most lose money on every barrel of oil they bring to the surface. Despite a 17% plunge in prices since April, drillers are on pace to break the all-time U.S. oil production record, topping 10 million barrels a day by early next year if not sooner, according to government officials and analysts. U.S. crude fell again … [Read more...]

John Fredriksen, a billionaire shipping magnate, is looking to buy oil tanker companies. He wants to prepare for a rebound in oil prices and expand his business empire. Fredriksen wants to spend more than $2 billion on acquisitions to overtake his competition as the largest shipping company in the world. Costas Paris writes: “We used to be the biggest VLCC owner, but now we are No. 4,” as his tanker company,Frontline Ltd. , was overtaken by rivals, said Mr. Fredriksen in a rare interview earlier this month. “I’m looking to invest more than two billion [dollars] in acquisitions,” he said, … [Read more...]

With the shale revolution generating massive new oil and gas supplies, big oil companies are looking for ways to maximize returns on the glut. For the biggest oil majors, like ExxonMobil and Shell, investment in petrochemicals, especially plastics, seems like the best route to increased profit. Spending on new petrochemical projects is taking off in the U.S. Christopher Matthews writes: Companies are eagerly launching new U.S. petrochemical projects—310 in all according to the Chemistry Council—because at a time of uncertainty over when demand for transportation fuels may peak, due to … [Read more...]

  Gasbuddy.com makes it easy to see where the cheapest gasoline is. I first told you about Gasbuddy.com in 2014. Back then the range of gas prices on the Gasbuddy.com map key was from $2.55 to $3.35, today that range has fallen substantially. Prices today range between $1.73 and $2.79. … [Read more...]

Farming equipment maker Deere expects South American farmers to buy 20% more tractors and harvesting combines after this year. Record harvests and increased profitability are giving South American farmers the confidence to buy. Meanwhile North American farmers aren't feeling the same, with expectations that they will purchase 5% less farm equipment this year. The slump in U.S. and Canadian sales is a bit of a backlash from recent success. Bob Tita writes in the WSJ: The slump, driven by years of strong harvests that have produced record global grain stockpiles, is pushing some U.S. farmers to … [Read more...]

As OPEC members dutifully hold back on oil production, American producers are stepping in to fill the gap in production left by the cartel. Oil boom-bust areas like Williston, North Dakota, which was hit hard by the drop in oil prices, are now booming once again. If America has become the new swing producer in oil markets, OPEC will have trouble getting a firm grip on oil prices ever again. NPR reports on the boom in oil country: There are more than twice as many U.S. rigs drilling for oil as a year ago, a turnaround that's felt keenly in places like the Bakken oil patch in North Dakota. … [Read more...]

According to the IEA, a host of new efficiency measures, the rise of electric vehicles, and increased usage of bioplastics could combine to cap world oil demand by 2020. All these things together, which is what the IEA says would be required to limit global warming to within 2 degrees Celsius, would mean oil demand peaking around 2020 and declining by about 20 million barrels a day by 2040. That’s 36 million barrels a day lower than the average oil company forecast for 2040—a gap larger than OPEC’s current production. Some oil companies have acknowledged the potential for demand to peak … [Read more...]

Scientists working in Rutland, Vermont have installed a massive lithium ion battery at the Green Mountain Power, Stafford Hills solar farm. The battery charges up during the day when the installation's 7,722 solar panels are producing power at full blast. The power can then be fed back into the grid when the sun has set. Grid battery storage is something like a "Holy Grail" for power companies. Electricity is mostly a "use-it or lose-it" commodity, and planning generation around fickle renewable power sources like solar and wind can make it hard on utilities to operate. The research … [Read more...]