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Industry News

OPEC likely to drive near-term oil market as recovery lags: Scotiabank

The Scotiabank Commodity Price Index gained 2.2% m/m in February as industrial commodities continue to benefit from healthy demand on the back of a stronger global economic outlook, while supply-side idiosyncrasies continue to provide opportunity for differentiation. The oil market recovery remains on track but fragile, as OPEC headlines will continue to drive near-term market sentiment, especially ahead of the May 25th meeting to decide whether or not to maintain production cuts for another six months. 

"We're now in the third month of OPEC production cuts and compliance within the OPEC-11 has been surprisingly strong," said Rory Johnston, Commodity Economist at Scotiabank. "We believe that the combination of high OECD inventories, still-weak upstream investment outside the U.S. and recent oil price weakness will prompt OPEC to extend their production cap through the end of the year." 

Prices for North American benchmark WTI have been downgraded and are now forecast to average $53/bbl in 2017 and $56/bbl in 2018. Four key trends that will shape the oil market for the remainder of 2017 are OPEC output discipline; the pace of the U.S. shale response; non-OPEC production declines outside the continental U.S. and; the strength of consistently-underestimated global demand growth. 

Non-OPEC countries outside the U.S. and Canada remain a larger but slower-moving factor in future supply. However, recent strength in Brazilian production has offset broader weakness in the rest of this "other" category. This production group will be essential to meet future supply needs and is nearly equal to OPEC in size. 

Other highlights: 
  • U.S. shale continues strong rebound after market was flooded by supply and prices plunged in 2014, as U.S. crude production is on track to reach growth of 1Mbpd y/y by December. 
  • Copper forecasts have been upgraded to $2.50/lb in 2017 and $2.65/ln in 2018 as combination of production loss, continued supply uncertainty and potential for stronger Chinese demand are all near-term bullish for prices. 
  • Aluminium prices are forecast to average $0.85/lb in 2017 and 2018 as Chinese "blue sky" policies could remove substantial amounts of supply off the market, flipping balances to moderate deficit in 2017. 
  • Zinc continues to show strongest fundamentals with prices forecast to average $1.35/lb in 2017 and $1.55/lb in 2018. 
  • Nickel supply received potential shock as Philippines President Duterte raised possibility of banning all domestic mining activity. Prices are now forecast to average $5.00/lb in 2017 and $5.50/lb in 2018. 
  • Gold prices are likely to average $1200/oz in 2017 and $1250/oz in 2018 given a mix of mildly bearish interest rate fundamentals and a balanced risk outlook.

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Shows & Events

Oil Sands Trade Show returns to Fort McMurray for 2017

Oil Sands Trade Show and Conference (OSTS) is returning to Fort McMurray and will offer attendees expertise and insights from all aspects of the oil sands industry in one setting. This premier oil sands event takes place Tuesday, September 12 to Wednesday, September 13 at the Suncor Community Leisure Centre in Fort McMurray. OSTS will focus on promoting the latest industry technologies, maintenance, shutdowns/turnarounds, mining, upgrading, health and safety, and environmental strategies, and offer attendees access to many free-to-attend conference sessions.

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Software & IT

New publishing and cloud platform support for process insights

Seeq Corporation announces the release of its latest version, Seeq R18. This is the 7th release of Seeq software in just the past 18 months, driven by input from customers expanding their use of Seeq. Seeq is a visual analytics application for engineers and scientists in process manufacturing organizations to rapidly wrangle, investigate, and share insights on production data. Target markets include oil & gas, pharmaceutical, chemical, energy, mining, food and beverage, and other process industries. 

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Instrumentation, Systems & Automation

Family of multipoint thermal flow meters

Process and plant engineers responsible for optimizing combustion or pre-heated air to large boilers, stack environmental emissions monitoring and reporting (U.S. EPA CEMS), or flue gas/scrubber balancing, will find an optimal solution in FCI's family of multipoint thermal flow meters. Designed specifically for flow measurement in round pipes or stacks of 12 inches [300 mm] and larger diameter, and square or rectangular ducts with cross sectional area of 100 inches [250mm] and larger, the model ST102A Flow Meter and the new MT100 Series Flow Meters from Fluid Components International (FCI) provide two to eight non-clogging, no moving parts sensing points that ensure superior accuracy repeatability and reliable operation. 

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Instrumentation, Systems & Automation

Liquid analyzers provide consistent process data

With their intelligent design, precision accuracy and excellent reliability, the family of modular S80-T80 Liquid Analyzers from Electro-Chemical Devices (ECD)provides engineers and managers with the consistent process data they need to obtain and maintain a wide range of global, regional and local quality, environmental, safety and other certifications, as well as achieve government regulatory operational compliance.

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Instrumentation, Systems & Automation

Wall-mounted particle/mass monitors have multiple options

GrayWolf Sensing Solutions has introduced a new, branded 6-channel Particulate Meter which optionally incorporates sensors for additional environmental parameters such as Total Volatile Organic Compounds (TVOCs), Carbon Dioxide (CO2), Temperature and Relative Humidity. This wall-mounted monitor, a modified version of the portable PC-4005 introduced last year, displays and logs calculated particle mass concentrations while simultaneously displaying and logging all installed optional sensors.

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Pipelines

Enbridge hosts provincial, federal leaders for Line 3 tour, kickoff

Premier Rachel Notley, Amarjeet Sohi, federal Minister of Infrastructure and Communities, Kent Hehr, federal Minister of Veterans Affairs and Leo Golden, Enbridge vice-president tour the Line 3 construction site in Hardisty, Alberta.  – Province of Alberta

On Thursday, Aug. 10, 2017, Enbridge hosted a Line 3 Replacement Program (L3RP) construction right-of-way tour for a number of federal, provincial, and municipal leaders, including Premier Rachel Notley. Notley, Amarjeet Sohi, federal Minister of Infrastructure and Communities, and Kent Hehr, federal Minister of Veterans Affairs were on hand for the tour near Hardisty, AB.

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Industry News

Netzsch announces new VP of OEM Management

Netzsch Pumps North America has expanded its Executive sales force by hiring Robert LePera as the Vice President of OEM Sales. He will provide world class support to our OEM customers by addressing their needs with a dedicated and independent sales organization. The goal is to provide individual attention with a team that includes sales, service and engineering that speaks the language of the OEM customer.

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Drilling & Production

Coiled tubing simulation software enables data-driven decisions

CIRCA coiled tubing simulation software from Baker Hughes enables coiled tubing service providers to maximize equipment performance and improve operational efficiency in well interventions. Based on learnings from the field and built and refined over three decades, the software allows coiled tubing providers and operators to build better job models for more predictable results. 

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Instrumentation, Systems & Automation

Probe plans acceleration of global expansion with investment

Probe Technologies Holdings, a supplier of logging and reservoir monitoring technology to the global oil and gas and geothermal industries, announced that Turnbridge Capital has completed a growth recapitalization of the Company alongside its experienced management team.  Federico Casavantes continues leadership of the Company as its President & Chief Executive Officer, while Gary Cresswell has joined to serve as Executive Chairman of Probe. 

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Environmental
Industry News

Methane detector pilot launched at Shell shale gas site

Shell has launched a methane detector pilot at one of its shale gas sites near Rocky Mountain House in Alberta, Canada. The pilot test is part of a wider multi-stakeholder initiative called the Methane Detectors Challenge, a partnership between Environmental Defense Fund (EDF), oil and gas companies, US government agencies and technology developers to test next generation methane detection technologies. The initiative aims to enable better early detection and repair of methane leaks, and ultimately reduce emissions. While detection technologies and processes are already in place across the oil and gas industry, more technical innovation is desired. 

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Industry News

Sliding vane pumps excel in chemical-transfer spots

Blackmer GNX and GNXH Series sliding vane pumps incorporate numerous design features that help them excel in a wide variety of chemical-transfer applications. The design of GNX and GNXH Series pumps eliminates traditional couplings and features a commercial-grade, single-stage gearbox with aluminum housings, NEMA C-face or IEC D-flange motor connections and a proprietary output shaft that is compatible with the Blackmer keyed pump shaft. This revolutionary design makes GNX and GNXH Series pumps the industry's first alignment-free, reduced-speed pumps for use in both portable and stationary applications, Blackmer states.

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