First Gas from Ultra-Deepwater Gulf of Mexico Pipeline

                           Williams , through its general partner ownership of Williams Partners announced with DCP Midstream Partners, LP that the new extended Discovery natural gas gathering pipeline system is now flowing natural gas. The Keathley Canyon ConnectorTM deepwater gas gathering pipeline system and the South Timbalier Block 283 junction platform are serving producers in the central ultra-deepwater Gulf of Mexico.

The 20-inch, 209 mile Keathley Canyon Connector, which is capable of gathering more than 400 million cubic feet per day (MMcf/d) of natural gas, originates in the southeast portion of the Keathley Canyon protraction area and terminates into Discovery’s 30-inch diameter mainline at Discovery’s new junction platform. The pipeline was constructed in depths of up to 7,200 feet of water approximately 300 miles south-southwest of New Orleans.

“Building a pipeline in challenging terrain at this depth is incredibly complex, and I applaud our project team for their commitment to completing the project in a safe, environmentally responsible and timely manner,” said Rory Miller senior vice president of Williams’ Atlantic-Gulf operating area. “True to our vision of developing smart, large-scale solutions to move gas to market, we’ve built a highly reliable and cost-effective connection from deepwater production to our onshore Larose gas processing plant and Paradis fractionator.”

5 Reasons Oil Prices Are Dropping

As oil prices continue to fall, analysts and producers are trying to wrap their heads around the reasons and identify a floor price. Even though crude benchmarks like Brent and WTI keep dropping, the cost of finding oil continues to rise. What are some of the key drivers that have created this paradox? 

1. The U.S. Oil Boom

America’s oil boom is well documented. Shale oil production has grown by roughly 4 million barrels per day (mbpd) since 2008. Imports from OPEC have been cut in half and for the first time in 30 years, the U.S. has stopped importing crude from Nigeria.  

2. Libya is Back

Because of internal strife, analysts have until recently assumed that Libya’s output would hover around 150,000-250,000 thousand barrels per day. It turns out that Libya has sorted out their disruptions much quicker than anticipated, producing 810,000 barrels per day in September. Libyan officials told the Wall Street Journal last week that they expect to produce a million barrels per day by the end of the month and 1.2 million barrels a day by early next year. 

3. OPEC Infighting 

There have been numerous reports