Morning Headlamp — Living in a low price world

State-owned Saudi Aramco is already co-owner, with Royal Dutch Shell, of Motiva, the largest U.S. refinery. Under an already signed agreement, in April 2017, Aramco will take full ownership of the most valuable Motiva assets. Now comes news that Motiva is the leading candidate to purchase the Lyondell Basell Refinery in Houston. This would give Saudi Arabia control of two major Texas refineries proving, once again, that American energy independence is impossible.

On Wednesday, Moody’s Investor Service issued a report on the blow suffered by many places that once enjoyed a boom in shale oil and shale gas. Low oil and gas prices have directly lowered tax revenues in many states, and have also led to a drop in drilling activity and related services that has indirectly hurt state and local finances. In Alaska, revenues from energy taxes made up almost 90 percent of general fund revenues when prices were high, Moody’s said.

The B.C. Court of Appeal has dismissed an appeal by the Peace Valley Landowner Association to overturn approval of the Site C dam. Those panel recommendations included referring the dam for review by the BC Utilities Commission, as well as having the commission review a long-term pricing scenario that included LNG demand, and reviewing BC Hydro’s load forecast and demand side management plan.

 

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First Reads

US Crude Oil Production Rose for the Week Ending September 9
Market Realist, September 15, 2016

U.S. petro-states, petro-towns suffering in low oil prices
Fairbanks Daily News Miner, Steve Mufson, September 15, 2016

Saudi Arabia Is Buying Up America’s Oil Assets
Forbes, Ellen Ward, September 15, 2016

Court dismisses landowners’ appeal to reverse Site C approval
Alaska Highway News, September 15, 2016