Top News
New S&P podcast: Energy futurist sees major hurdles to renewables dominance
Population growth and mineral resource scarcity will hamper the global energy sector's transition from hydrocarbons to renewables, financial forecaster and futurist Jason Schenker says in the inaugural episode of Energy Evolution, a new S&P Global Market Intelligence podcast. Click here to listen.
FERC moves to ease PURPA power purchase mandate
A draft proposed rule the Federal Energy Regulatory Commission voted to approve Sept. 19 would sharply ease requirements for U.S. electric utilities to buy power from small renewable and cogeneration power plants.
Using fewer rigs and less cash, Pennsylvania's gas production still grows
Despite fewer rigs in action, shale gas production in Pennsylvania inched higher to 18.55 Bcf/d in July, pushed up by significant jumps in production by two producers in northeastern Tioga County, the latest state data showed Sept. 17.
BP remains committed to oil businesses despite low-carbon transition, CEO says
BP PLC plans to continue investing in lower-return renewable fuels and technologies while also using its oil businesses to maintain solid cash flow and a healthy dividend to shareholders, CEO Bob Dudley said Sept. 18.
Contura announces agreement to transfer PRB mines to FM Coal affiliate
Contura Energy Inc. announced Sept. 18 that it has entered into an agreement with an affiliate of FM Coal LLC interested in acquiring and operating the Eagle Butte and Belle Ayr coal mines in the Powder River Basin, a deal that may release Contura from all bonding, reclamation and operational liabilities pertaining to the mines.
Quoted
"The world is going to need all fuels; it is going to need oil. Our role [at BP] is to create a return on investment or we go away, we don't exist," said
Power
* The next wave of offshore wind projects in the U.K. will be delivered at prices significantly below the market rate for electricity, results from the country's third renewable power auction confirmed on Sept. 20.
* With Exelon Corp.'s Three Mile Island nuclear plant scheduled close Sept. 20, the debate over whether Pennsylvania should give financial support to the remaining facilities remains unresolved.
* Google LLC signed a 1,600-MW package of renewable power purchase agreements, as part of its sustainability efforts. The deals mark "the biggest corporate purchase of renewable energy in history," Google CEO Sundar Pichai wrote in a Sept. 19 blog post.
* Oklahoma regulators adopted a settlement agreement that will result to no rate increase for Oklahoma Gas and Electric Co. The agreement settles a rate case that began with an application from the OGE Energy Corp. subsidiary requesting a $77.6 million increase.
* Dominion Energy Inc. announced plans to develop more than 2,600 MW of offshore wind capacity by 2026 in what the company bills as the "largest offshore wind project" in the U.S.
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* Florida Democratic lawmakers are hoping that a "shift in tone" on climate change by their Republican colleagues will improve the chances of passing a 100% renewable energy bill in the coming session, WFSU reported.
* The Nuclear Regulatory Commission has proposed a $232,000 fine against Florida Power & Light Co. and has barred a former FP&L executive from NRC-licensed activities for five years for retaliating against a contract employee, who raised a safety concern while working at the St. Lucie Nuclear Power Plant near Fort Pierce, Fla.
Natural gas
* The first natural gas liquefaction train at the Cameron LNG LLC export terminal in Louisiana will likely remain
* Occidental Petroleum Corp.'s potential sale of its majority stake in Western Midstream Partners LP has garnered interest from suitors, including Blackstone Group Inc., Apollo Global Management Inc., Global Infrastructure Partners and KKR & Co., Bloomberg News reported, citing people familiar with the matter.
* It could be 2020 before Australia's LNG Ltd. builds enough commercial support for its proposed Magnolia LNG LLC export terminal in Louisiana to reach a final investment decision, the top executive said.
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Oil
* With a rising number of oil and gas exploration and production companies facing bankruptcy in 2019, analysts anticipate more credit defaults and Chapter 11 filings will occur across the sector before the year is out.
* Saudi Arabian Oil Co. is seeking to import crude oil to meet its obligations to customers, The Wall Street Journal reported, citing oil traders.
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* Tailwater Capital LLC, an energy-focused private equity firm, made a $150 million commitment to Triten Energy Partners. The newly established company will develop and acquire downstream facilities related to producing valuable fuels and chemicals for the refined products and petrochemical sectors.
* Oilfield services company Petrofac Ltd. will end its operations in Mexico after the sale of its remaining 51% stake to partner Perenco (Oil & Gas) International Ltd. for up to $276 million.
* Valero Energy Corp. lowered production at its Port Arthur, Texas, refinery because of flooding, Reuters reported, citing sources familiar with plant operations.
Coal
* Peabody Energy Corp. terminated its previously announced cash tender offers to purchase outstanding 6.0% and 6.375% senior secured notes, saying the "debt markets do not accommodate a path toward completing the offers and achieving the company's refinancing objectives in an economic fashion" at this particular time.
* The majority of global coal companies are still making expansion plans, an environmental and human rights organization announced Sept. 19.
* Total U.S. coal production for the week ended Sept. 14 decreased 4.2% year over year to 13.9 million tons from 14.5 million tons, according to data from the U.S. Energy Information Administration.
ChartWatch

Daily natural gas flows feeding U.S. LNG export terminals rose again in August as the Sempra Energy-led Cameron LNG plant entered commercial service, becoming the fourth major facility to reach that milestone, but the total flows to these terminals were down for the month compared to July.
New from RRA
* The Pennsylvania Public Utility Commission voted to adopt a settlement, with minor modifications, in a rate case filed by UGI Corp. to consolidate the rates of its gas subsidiaries. The PUC action comports with the administrative law judge's Aug. 22 recommendation that the commission adopt a "black box" agreement calling for a $30 million rate increase.
The day ahead
* The Baker-Hughes rig count is due out today.
* Early morning futures indicators pointed to a higher opening for the U.S. equity markets. To view more SNL equity market indexes, click here. To view more SNL Energy commodities prices, click here.

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