01172020Fri
Last updateThu, 16 Jan 2020 7pm

Energy Sector in Central U.S. Contracting

According to the Kansas City Fed, energy activity continued to drop in the fourth quarter of 2019. The drilling and business activity index fell from -23 to -48, indicating a continued, significant decrease in activity following a slight expansion earlier in 2019. However, the revenues index improved slightly, the wages and benefits index remained positive, and the employment index was flat. The supplier delivery time, profits, employee hours, and access to credit indexes all declined.


Texas Processing New Drilling Permits at Historic Rate

For two years in a row, since 2018, the Railroad Commission of Texas has set a historic record of taking just two days on average to process standard drilling permits, one day below the legislative requirement. In 2019 the commission processed a total of 11,654 new drilling permits. Standard drilling permits are permits that do not require exceptions to commission rules such as spacing or density rules.

Texas leads the nation in oil and gas production with the Permian Basin in West Texas ranking as the top energy production region nationwide. In the last 12 months Texas operators reported 1.438 billion barrels of oil produced and almost 10 trillion cubic feet of total gas.

Oil and Gas Companies Struggle to Reestablish Investor Trust

In recent years, oil and gas companies have disappointed their investors, and now, they must do everything they can to undo the damage, according to a new report by Boston Consulting Group (BCG).

The report details the factors and forces beyond the companies’ control—including oil price weakness and volatility—that have weighed on the firms’ ability to generate strong total shareholder returns (TSRs). Nevertheless, companies can take steps to regain investor confidence, even in a difficult external environment.

In Natural Gas Industry, U.S. Holds Competitive Advantage

After years of high and volatile natural gas prices, new domestic supplies of more affordable natural gas and natural gas liquids (NGLs) have created a competitive advantage for U.S. chemical manufacturing, leading to industry growth and new jobs. According to the American Chemistry Council, companies from around the world are investing in new projects to build or expand their shale-advantaged capacity in the U.S. Since 2010, 340 projects cumulatively valued at $204 billion have been announced, with 56% of the capital investment completed or under construction, 41% in the planning phase, and 3% of delayed or unknown status. Much of the investment is geared toward export markets for chemistry and plastics products, which can improve America’s trade balance. Fully 70% of the investment is by firms based outside the U.S. or includes a foreign partner.

Global Chemicals Output Improves in November

Data collected and tabulated by the American Chemistry Council show that global chemicals production grew by 0.3% in November, a reversal of the 0.2% decline in October. During November, chemical production increased in Latin America, Africa and the Middle East, and the Asia-Pacific region. Production was flat in Europe and fell in North America and the Former Soviet Union. Headline global production was up only 1.4% year-over-year (Y/Y) on a three-month moving average basis and stood at 117.7% of its average 2012 levels.

During November, global capacity rose by 0.2% and was up 3.5% Y/Y. As a result, capacity utilization in the global chemical industry rose 0.1 points to 81.7%. This is down from 83.4% last November and below the long-term (1987-2017) average of 86.7%.

Subscribe FALL19FREE SUBSCRIPTION*

• Print magazine
Digital magazine
• VALVE eNews
Read the latest issue

*to qualified valve professionals in the U.S./Canada

Looking for a career in the Valve Industry?

ValveCareers Horiz

To learn more, visit the Valve Careers YouTube channel to watch the videos below or visit ValveCareers.com a special initiative of the Valve Manufacturers Association

  • Latest Post

  • Popular

  • Links

  • Events

New Products