-The Senate today approved a House bill to extend the Chemical Facility Anti-Terrorism Standards (CFATS) Authorization and Accountability act through 2017. American Fuel & Petrochemical Manufacturers President Charles Drevna said extending the program would allow refiners and petrochemical manufacturers to enhance security measures at their facilities and give them “much needed stability” to make long-term investments. The measure will now go back to the House since amendments were added in the Senate.
-A shortage of labor could slow down the U.S. chemical manufacturing industry’s shale-driven renaissance. Via Bloomberg, some companies are experiencing project delays and cost overruns as a flurry of expansion overwhelms the workforces in many areas. The problem could get worse as more LNG terminals and ethylene plants are built in the Gulf Coast region. Methanex CEO John Floren said the only viable way to address it is to train more people.
-The city council of Port Arthur, Texas, voted to annex Valero’s Port Arthur refinery, which will now be subject to full property taxes. Via the Port Arthur News, the refinery’s taxable value could be set at $1.3 billion. Valero claims the plant’s taxable value is closer to $800 million.
-Methane emissions from natural gas production are down from previous estimates and now represent only 0.38% of production, according to a new study released by the American Petroleum Institute. The study found that emissions are down 10% from what the same University of Texas research team estimated in September 2013.
-Oilfield service companies may see their earnings shrink as customers seek deep discounts amid the oil price plunge, Bloomberg reports. Contractors will have to lower prices by as much as 20%, which could cut the earnings of Schlumberger, Halliburton, Baker Hughes and Weatherford International by more than $3 billion. Service companies were looking forward to raising rates after a glut of pressure-pumping gear lowered prices in recent years, but the oil price decline is likely to forestall those plans. Meanwhile, some oil companies such as Chevron are deferring their 2015 budget plans until early next year.