Here’s what you need to know this week in oil and gas:
No injuries in pipeline explosion in Texas
A natural gas pipeline exploded in Refugio County, Texas early Wednesday morning.
No injuries were reported, Refugio County Judge Robert Blaschke said.
The Kinder Morgan Inc. pipeline exploded about 12:30 a.m. and the fire was extinguished by 2:30 a.m. The pipeline fireball climbed an estimated 200 feet into the air, according to reports.
The company is investigating the cause of the explosion.
IEA: OPEC complying with output cuts
The International Energy Agency said that OPEC has achieved the best compliance rate in its history by adhering to its production cut plan.
According to IEA, OPEC implemented 90 percent of output cuts in January, and 11 non-OPEC members who also agreed to the deal reached about half their agreed reductions. Meanwhile, Saudi Arabia reduced output by even more than it had agreed.
“This seems to be one of the most successful agreements in terms of compliance,” IEA Executive Director Fatih Birol said in Oslo. “But there’s a second story: strong growth coming from the non-OPEC countries who are not part of the agreement.”
The IEA estimates that this year, world oil demand will see an increase of 1.4 million barrels a day.
Governors asking Trump to support wind, solar energy
Twenty state governors are asking President Donald Trump to support the wind and solar industries with more federal funding.
According to a letter from The Governor’s Wind & Solar Energy Coalition, the group is also asking for legislation to support offshore wind farms and a more streamlined permitting process for solar and wind projects.
The letter represents eight Republican governors and 12 Democratic governors.
“The nation’s wind and solar energy resources are transforming low-income rural areas in ways not seen since the passage of the Homestead Act over 150 years ago,” Kansas Republican Sam Brownback and Rhode Island Democrat Gina Raimondo wrote in the letter.
Work officially restarts at Dakota Access Pipeline
A federal judge this week refused another effort to stop construction on the last stretch of construction on the Dakota Access Pipeline.
Energy Based Transfers had started drilling work last week and the company expects that horizontal drilling under Lake Oahe will finish within 60 days.
The pipeline will extend 115 below the bottom of Lake Oahe.
North Dakota protest leaders have already asked activists to return to the Standing Rock Sioux camps to begin protesting again.
Alpine High well results disappointing
Some analysts are worried well results released from Apache Corp.’s Alpine High are disappointing.
The company first announced the discovery in September, saying that the field could boast at least 15 billion barrels of oil and gas, but analysts have pointed out that production from new wells hasn’t been a strong indication of such a large find.
An analysis from Simmons & Company International said the new well results were “weaker than previous results.”
This week, Apache chief executive John Christmann confirmed oil and gas in five geologic formations, saying the reservoirs are “over-pressured,” meaning that they will more easily produce oil and gas.