Canada’s Pipeline Crisis Is A Boon For Russia

The controversy of the Trans Mountain pipeline expansion projects has so far focused more on the implications of the project’s delay for Albertan crude oil producers. Yet, the developments around the pipeline also have reverberations for the U.S. refining industry and more specifically that part of it, which operates in the Pacific Northwest, a region without the luxury of many and different sources of crude to turn into fuel and other products for the local industries and households. Canadian crude and crude from Alaska have been the traditional…

Source: Oilprice.com

Iran Sanctions Could Backfire On U.S. Drillers

The United States is upping the ante in its effort to sanction Iran, and its efforts may further complicate its ongoing trade war with China and affect the flow of oil worldwide. On August 16, the head of the new Iran Action Group, Brian Hook, announced that the U.S. would sanction any country that purchased oil from Iran after the November 4 deadline. China has shown no indication that it plans to cooperate with the U.S., and Hook did not rule out imposing secondary sanctions on China if it continues its purchases of Iranian oil. While other importers…

Source: Oilprice.com

Venezuela’s Key Refineries At Risk Of Seizure

In 2007, following Venezuela’s expropriation of billions of dollars of assets from U.S. companies like ExxonMobil and ConocoPhillips, I suggested a potential remedy. Since Venezuela’s state-owned oil company, PDVSA (Petróleos de Venezuela, S.A.) owns the Citgo refineries in the U.S., the companies that had lost billions of dollars of assets should target these refineries for seizure as compensation. These refineries have the same vulnerabilities as the U.S. assets in Venezuela that were seized. They represent infrastructure…

Source: Oilprice.com

What Happens Next To China’s Crude Imports?

Our friends over at Ursa published a blog post yesterday discussing crude inventories at Kyaukphyu in Myanmar, highlighting the seeming political nature of recent crude flows to the storage hub.  Crude is delivered to CNPC's Kabala terminal in Myanmar and is stored at Kyaukphyu before being transported by pipeline to the Yunnan refinery in China.  Since the terminal started up in April 2017, we can see from our ClipperData that there has been nearly 80 million barrels discharged there. Saudi Arabia is…

Source: Oilprice.com

Overlooked Gas Project Could Be Biggest Winner In Trade War

After several months of what can only be only called bad PR and troubling news coming out of the ExxonMobil-led $19 bn Papua New Guinea (PNG) LNG project, finally some good news has broken. Project partner Oil Search, which holds a 29 percent stake, said the project had agreed to a deal to supply LNG to a unit of British oil giant BP. The agreement will start this month and provide BP with about 450,000 tonnes of LNG per annum over an initial three-year period, then rising to about 900,000 tonnes for the following two years, Oil Search said in…

Source: Oilprice.com

Egypt Aims For Natural Gas Dominance In The Mediterranean

The natural market gas in the Eastern Mediterranean is in full ebullition – with Egypt determined to be the center of this regional marketplace. The country faces challenges, including maintaining equidistance from the region’s various tensions, reforming its legal framework for regional gas deals and effectively communicating its activities to the Egyptian population – no easy matter given the complex history of regional gas cooperation, Egypt’s own regional energy relations, and its need to subdue public opinion with the…

Source: Oilprice.com

Are Environmentalist Stunts Obfuscating A Serious Nuclear Debate?

The Greenpeace activists who crashed a Superman-styled drone into an EDF facility near Lyon, France on July 3 pulled off the latest of several stunts designed to highlight the vulnerability of France’s ageing nuclear reactors. In a country whose energy mix is built on nuclear power, the strategy is working: the Superman incident came just before a French parliamentary report called out security “failings” at some facilities. Revelations of faulty welding at the new Flamanville reactor have…

Source: Oilprice.com

Prophet of Spindletop

 

Self-taught geologist Patillo Higgins became known as the “Prophet of Spindletop” a decade after founding his Gladys City Oil, Gas & Manufacturing Company in 1892. He was instrumental in discovering the world-famous Spindletop oilfield at Beaumont, Texas. 

Prophet of Spindletop

Pattillo Higgins formed the Gladys City Oil, Gas & Manufacturing Company on August 24, 1892. He left the company prior to its famous gusher.

“Pattillo Higgins believed that oil lay beneath his feet at Spindletop,” reported the Gladys City Chronicles. “He had a feeling that drilling a well on top of this salt dome (and others like it) would produce oil, and lots of it.”

Higgins was convinced that an area known as “Big Hill” – Spindletop – four miles south of Beaumont, had oil, despite all conventional wisdom to the contrary.

As geologists would soon learn, salt domes are surrounded by oil, and one of the largest was Spindletop Hill, south of Beaumont, notes a local museum.

At age 29, Higgins established one of the earliest of all Texas oil companies – the Gladys City Oil, Gas & Manufacturing Company – with three partners on August 24, 1892. He believed the future energy industry would change from coal to oil.

Higgins had noticed oil seeps and gas flares on the hill while taking his Sunday school class on picnics. To get the necessary backing to drill, he approached George W. Carroll, George W. O’Brien, and J.F. Lanier.

Gladys City Oil, Gas, and Manufacturing Company leased 2,700 acres in Jefferson County. Their plan was to find oil and use it to develop a model industrial city, which Higgins carefully mapped.

“It was Higgins’ dream to make Gladys City, named for his favorite Sunday school student, Gladys Bingham, a perfect industrial city based on manufacturing and the production of oil,” explains the Spindletop-Gladys City Boomtown Museum.

Prophet of Spindletop

Pattillo Higgins later founded the Higgins Oil and Fuel Company and later the Higgins Wonder Oil Company. The bond certificate above, signed by Patillo Higgins, is attractive to scripophily collectors.

Although the company drilled wells on Spindletop Hill in 1893, 1895 and 1896 – all were dry holes.

“By 1896, industry experts and Beaumont residents believed Spindletop was worthless and that Higgins was something of a fool,” notes the Texas State Historical Association (TSHA). Still believing in hill’s potential, Higgins advertised in search of geologists and engineers.

Anthony Lucas, a Croatian-American mining engineer and an expert on salt-dome formations, responded to one of the advertisements and traveled to Beaumont, TSHA adds. “With the assistance of Higgins, Lucas negotiated a lease on June 20, 1899, with Gladys City to drill on Spindletop.”

However, a series of drilling problems stopped the attempt at a depth of 575 feet, according to historian Robert Wooster. This failure exhausted the last of the partners’ finances.

Lucas contacted experienced drillers John Galey and James Guffey of Pittsburgh, Pennsylvania. Guffey, who controlled newly raised funds (investors included Andrew Mellon), excluded Higgins from the new venture.

Lucas brought in the famous gusher on January 10, 1901. His 1,140-foot-deep well on Spindletop Hill flowed uncontrolled for nine days at about 100,000 barrels of oil a day.

Soon known as the “Lucas Gusher,” the new oilfield produced almost 3.6 million barrels in its first year alone. As drilling companies proliferated and drilled wells, the field produced 17.4 million barrels the following year.

Spindletop also brought the first extensive use of rotary drilling technology, replacing many cable-tool rigs. Further, “Christmas trees” of valves to control oil wells became commonplace in the industry after the Lucas Gusher.

Although Higgins had left the company, he wisely retained some leases at Spindletop field. He subsequently formed the Higgins Oil and Fuel Company and then the Higgins Wonder Oil Company, which drilled actively in Chambers, Wilson, Bexar, and Gonzales counties, Texas, in 1916-1918.

Prophet of Spindletop

Although Lucas received much of the credit, it was Higgins’ determination that Beaumont’s old “Big Hill” or “Sour Hill Mound” would yield oil and his relentless pursuit of it ultimately changed American energy history.

Prophet of Spindletop

Visitors to Spindletop-Gladys City Boomtown Museum can view exhibits in 15 replica buildings – watch a gusher demonstration.

“Call him a dreamer, a visionary, a pioneer or ‘the millionaire’ – the life and exploits of oilman Patillo Higgins are the stuff of legend,” notes the museum of the man who would drill many successful wells before passing away in 1955.

“Besides his ability to locate oil throughout south Texas, Higgins, in the early days of exploration at Spindletop, oversaw the planning for an ‘industrial Utopia’ called Gladys City,” the museum concludes.

Visitors to the Spindletop-Gladys City Boomtown Museum at Lamar University in Beaumont explore 15 replica buildings filled with objects from the early 20th century depicting life during the oil boom. The Spindletop field will produce more oil in one day than the rest of the world’s oilfields combined. Texaco, Gulf, Mobile and Sun Oil will trace their roots to Patillo Higgins’ confidence in the Big Hill.

Learn more in Spindletop lauches Modern Petroleum Industry.

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The American Oil & Gas Historical Society preserves U.S. petroleum history. Support this AOGHS.ORG energy education website with a contribution today. For membership information, contact [email protected] © 2018 Bruce A. Wells.

The post Prophet of Spindletop appeared first on American Oil & Gas Historical Society.

Source: American Oil & Gas Historical Society

Turkey’s Tariff Hike On U.S. Coal Imports Could Backfire

Turkey's move to hike tariffs on US imports this week threatens the country’s coal supply since a weakened lira will likely make the commodity a very expensive one, even as its price in U.S. dollar terms declines, a report by Wood Mackenzie shows. According to the Scottish research and consultancy group, high costs of imported coal in Turkish lira terms puts at risk a few million tonnes of metallurgical and thermal coal imports from several countries, particularly the U.S. “Even if Turkey relaxes rules sufficiently to…

Source: Oilprice.com

How To Trade The Turkish Crisis

Financial markets reacting negatively to a seemingly obscure or remote risk was commonplace not that long ago. Whether it was a slightly disappointing Chinese growth number, fears about the future of the Euro, or concerns about Greek debt, much of the recovery from the recession has been about lurching from worry to worry. In the last couple of years, however, that has eased. There has been a focus on improved global growth, lifting stocks as well as growth dependent commodities such as oil. Sure, the OPEC+ agreement to cut output has helped, but…

Source: Oilprice.com

Aramco Ready To Invest To Meet Future Oil Demand

Citing $1 trillion in planned investments lost since the market downturn began, Aramco’s chairman of the board of directors Khalid Al-Falih issued a battle cry to the world’s other oil producers in its latest report, Saudi Aramco Annual Review 2017. The message: mature oil fields are seeing an increase in declining production rates, and this must be offset by continued investments in the industry if the world is to meet what is thought to be an 1-1.5 million barrel per day annual demand growth rate in coming years. “To respond…

Source: Oilprice.com

Bears Are Back In The Oil Market

Friday August 17, 2018 In the latest edition of the Numbers Report, we’ll take a look at some of the most interesting figures put out this week in the energy sector. Each week we’ll dig into some data and provide a bit of explanation on what drives the numbers. Let’s take a look. 1. Oil prices testing lows (Click to enlarge)- WTI fell to $65 per barrel on Wednesday, flirting with the 200-day moving average. - WTI traded above that threshold for much of the past year. - The 200-day moving average is a key resistance point. It offers…

Source: Oilprice.com

Global Energy Advisory – 17th August 2018

The Permian once again reaffirmed its status as the star shale play in the United States after Diamondback announced it had inked a merger deal worth $9.2 billion with peer Energen. This is the second Permian deal for Diamondback within a week, after it announced the acquisition of Ajax Resources for $1.2 billion. The Energen deal—all-stock—was prompted by an activist investor, Corvex Management, which has been vocally unhappy about the company’s weak shareholder returns. This aspect of the deal highlights an ongoing trend in…

Source: Oilprice.com

U.S., China Trade War Puts A Lid On Oil

The oil market has suddenly gone south in recent weeks, with cracks in the global economy starting to drag down oil. The U.S.-China trade war is one of the drivers of the souring climate. But that conflict could get a lot worse in the months ahead. The latest flashpoint is the lira crisis in Turkey, which is dragging down other currencies and sparking fears of an emerging market crisis. But the problems have been building for some time. The IEA warned last week that the oil market has been “cooling down,” which was partly the result…

Source: Oilprice.com

Demand Pitfalls, High Supply Threaten Long-Term Trend

Despite rebounding on Thursday and early Friday, October West Texas Intermediate crude oil futures are heading for a third consecutive weekly decline and its sixth weekly lower close out of seven amid increasing concerns about slowing global economic growth that could hit demand for petroleum products. Additional bearish factors include data released earlier this week showing a large build in U.S. inventories. The crisis in Turkey also contributed to the weakness by driving up demand for the U.S. Dollar. This lead to a broad sell-off in dollar-denominated…

Source: Oilprice.com

Aramco Ready To Invest To Meet Future Oil Demand

Citing $1 trillion in planned investments lost since the market downturn began, Aramco’s chairman of the board of directors Khalid Al-Falih issued a battle cry to the world’s other oil producers in its latest report, Saudi Aramco Annual Review 2017. The message: mature oil fields are seeing an increase in declining production rates, and this must be offset by continued investments in the industry if the world is to meet what is thought to be an 1-1.5 million barrel per day annual demand growth rate in coming years. “To respond…

Source: Oilprice.com

Aramco Ready To Invest To Meet Future Oil Demand

Citing $1 trillion in planned investments lost since the market downturn began, Aramco’s chairman of the board of directors Khalid Al-Falih issued a battle cry to the world’s other oil producers in its latest report, Saudi Aramco Annual Review 2017. The message: mature oil fields are seeing an increase in declining production rates, and this must be offset by continued investments in the industry if the world is to meet what is thought to be an 1-1.5 million barrel per day annual demand growth rate in coming years. “To respond…

Source: Oilprice.com

Aramco Ready To Invest To Meet Future Oil Demand

Citing $1 trillion in planned investments lost since the market downturn began, Aramco’s chairman of the board of directors Khalid Al-Falih issued a battle cry to the world’s other oil producers in its latest report, Saudi Aramco Annual Review 2017. The message: mature oil fields are seeing an increase in declining production rates, and this must be offset by continued investments in the industry if the world is to meet what is thought to be an 1-1.5 million barrel per day annual demand growth rate in coming years. “To respond…

Source: Oilprice.com