
Energy and Environment News
August 13, 2015
Top Stories
Oil. The Wall Street Journal notes that refining margins continue to rise in 2015, exceeding expectations and helping to cushion the impact of low oil prices for integrated oil and gas companies. The demand for oil products has benefited from lower prices more than experts predicted — particularly in the U.S., where average daily gasoline demand is more than 5% higher than last year and measures of “vehicle miles traveled” have also steadily risen. WSJ
Energy Outlook. The Energy Information Administration reports that increased Iranian crude oil production resulting from the nuclear accord will contribute to large inventory builds next year and consequently lower oil prices more than previously expected. Further, EIA’s outlook for U.S. crude production has been revised downward by 400,000 barrels per day in 2016, and the agency expects that the biggest declines in production among non-OPEC producers will occur beyond 2016 for producers in areas outside of the U.S. shale plays. EIA
Oil. Industry analysts report that the world’s biggest oil producers will need to slash investments by an additional $26 billion — or 10% of current expenditures — in order to meet dividend commitments amid the continued price slump. Oil producers have mitigated the impact of the price downturn by tightening operating costs, cutting capital expenditures, and even increasing their share of natural gas output in order to reduce exposure to low prices; looking ahead, analysts estimate that majors will need Brent prices at $82 per barrel next year in order to balance cash flow between operations and investments. Bloomberg
EPA. After a contractor for the EPA accidentally caused a mine to burst during a field investigation last week in Colorado, the agency has halted all similar investigations until further notice. The EPA is still seeking an independent review of the cause of the spill, and officials have not yet determined what health risks, if any, the incident poses. NY Times