May 17, 2020

More than 80% of U.S. oil comes from 5 states and the Gulf of Mexico

Admin
2 min
Crude oil production
[email protected] The March issue of Energy Digital magazine is live Five states and the Gulf of Mexico supplied 6 million barrels per day, more tha...

The March issue of Energy Digital magazine is live

Five states and the Gulf of Mexico supplied 6 million barrels per day, more than 80 percent, of the crude oil produced in the United States in 2013. Texas provided almost 35 percent, according to preliminary 2013 data released in Energy Information Administration's March Petroleum Supply Monthly.

The second-largest state producer was North Dakota with 12 percent of U.S. crude oil production, followed by California and Alaska at close to 7 percent each and Oklahoma at 4 percent. The federal offshore Gulf of Mexico produced 17 percent.

Total U.S. crude oil production grew 15 percent in 2013 to 7.4 million barrels per day. Texas and North Dakota led that growth, with their crude oil outputs each increasing 29 percent from 2012, according to EIA. Production gains in both states came largely from shales, especially the Eagle Ford in Texas and the Bakken in North Dakota. In the three years since 2010, North Dakota's crude oil output has grown 177 percent and Texas's output 119 percent, the fastest in the nation.

Three other states that were among the top 10 U.S. producers in 2013 also experienced production growth rates above 20 percent during the past three years. Colorado, which overlies part of the Niobrara Shale, had 93 percent growth in production from 2010 to 2013; Oklahoma, with the Woodford Shale, had 62 percent growth; and New Mexico, which shares the Permian Basin with Texas, had 51 percent growth.

Crude oil is produced in 31 states and two offshore federal regions – the Gulf of Mexico and the Pacific Coast. Of those 33 producing areas, 10 supply more than 90 percent of U.S. output. While nine of those top 10 areas were also among the top 10 producers five years ago, their relative contributions have changed.

North Dakota has risen from the seventh largest oil producer to the third. The Gulf of Mexico, Alaska, and California, which together in 2008 supplied nearly half of U.S. crude production mainly from conventional oil reservoirs, provided less than one-third of national output in 2013. Output in those areas has declined at the same time that overall national production has expanded.

Source: Energy Information Administration

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Jul 26, 2021

Ofwat allows retailers to raise prices from April

Ofwat
Utilities
water
prices
Dominic Ellis
3 min
Ofwat confirms levels of bad debt costs across the business retail market are exceeding 2% of non-household revenue

Retailers can recover a portion of excess bad debt by temporarily increasing prices from April 2022, according to an Ofwat statement.

The regulator confirmed its view that levels of bad debt costs across the business retail market are exceeding 2% of non-household revenue, thereby allowing "a temporary increase" in the maximum prices. Adjustments to price caps will apply for a minimum of two years to reduce the step changes in price that customers might experience.

Measures introduced since March 2020 to contain the spread of Covid-19 could lead to retailers facing higher levels of customer bad debt. Retailers’ abilities to respond to this are expected to be constrained by Ofwat strengthening protections for non-household customers during Covid-19 and the presence of price caps.  

In April last year, Ofwat committed to provide additional regulatory protection if bad debt costs across the market exceeded 2% of non-household revenue. 

Georgina Mills, Business Retail Market Director at Ofwat said: “These decisions aim to protect the interests of non-household customers in the short and longer term, including from the risk of systemic Retailer failure as the business retail market continues to feel the impacts of COVID-19. By implementing market-wide adjustments to price caps, we aim to minimise any additional costs for customers in the shorter term by promoting efficiency and supporting competition.”  

There are also three areas where Ofwat has not reached definitive conclusions and is seeking further evidence and views from stakeholders:   

  1. Pooling excess bad debt costs – Ofwat proposes that the recovery of excess bad debt costs is pooled across all non-household customers, via a uniform uplift to price caps. 
  2. Keeping open the option of not pursuing a true up – For example if outturn bad debt costs are not materially higher than the 2% threshold. 
  3. Undertaking the true up – If a 'true up' is required, Ofwat has set out how it expects this to work in practice. 

Further consultation on the proposed adjustments to REC price caps can be expected by December.

Anita Dougall, CEO and Founding Partner at Sagacity, said Ofwat’s decision comes hot on the heels of Ofgem’s price cap rise in April.

"While it’s great that regulators are helping the industry deal with bad debt in the wake of the pandemic, raising prices only treats the symptoms. Instead, water companies should head upstream, using customer data to identify and rectify the causes of bad debt, stop it at source and help prevent it from occurring in the first place," she said.

"While recouping costs is a must, water companies shouldn’t just rely on the regulator. Data can help companies segment customers, identify and assist customers that are struggling financially, avoiding penalising the entire customer in tackling the cause of the issue."

United Utilities picks up pipeline award

A race-against-time plumbing job to connect four huge water pipes into the large Haweswater Aqueduct in Cumbria saw United Utilities awarded Utility Project of the Year by Pipeline Industries Guild.

The Hallbank project, near Kendal, was completed within a tight eight-day deadline, in a storm and during the second COVID lockdown last November – and with three hours to spare. Principal construction manager John Dawson said the project helped boost the resilience of water supplies across the North West.

“I think what made us stand out was the scale, the use of future technology and the fact that we were really just one team, working collaboratively for a common goal," he said.

Camus Energy secures $16m funding

Camus Energy, which provides advanced grid management technology, has secured $16 million in a Series A round, led by Park West Asset Management and joined by Congruent VenturesWave Capital and other investors, including an investor-owned utility. Camus will leverage the operating capital to expand its grid management software platform to meet growing demand from utilities across North America.

As local utilities look to save money and increase their use of clean energy by tapping into low-cost and low-carbon local resources, Camus' grid management platform provides connectivity between the utility's operations team, its grid-connected equipment and customer devices.

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