Petroleum

During the last year, residents of neighborhoods in Chicago and Detroit have had to deal with growing piles of petroleum coke, or petcoke. These piles were often left uncovered, allowing winds to disperse black dust into surrounding communities and nearby waterways.

Minnesota’s legislative year began by tackling a problem few could have predicted only months earlier — a spike in the cost of propane and its impact on people (mostly in rural areas) who use it to heat their homes. Across the Midwest, the propane shortage has led to a spate of state legislation, gubernatorial-declared energy emergencies and executive orders.

Yesterday, the North Dakota Petroleum Council introduced a new proposal to the North Dakota Industrial Council committing the industry to capture 85 percent of the natural gas flared at wellheads within two years. Within six years, the Association committed to capturing 90 percent and upwards of 95 percent should regulatory agencies, the Legislature, and state and tribal stakeholders come on board.

The Energy Information Administration (EIA) announced yesterday that propane inventories in the Midwest dropped more than 2 million barrels in November 2013 - the largest such drop for the feedstock in a single month since 1993. The agency noted that continued frigid temperatures, low inventories going into winter, and a late harvest in the Midwest have led to sharp increases in spot market prices.