By JOHN P. TRETBAR
The operators of the Keystone Pipeline have updated their recovery numbers at the spill site in Washington County, Kansas. Workers had recovered 12,289 barrels of oil, and more than 32,000 barrels of oil and water through Saturday, according to the company's Web site. TC Energy estimates about 14,000 barrels of oil spilled when the pipeline ruptured last month. The entire system is operational now, with reduced pressure and other safety measures.
In a consent order signed earlier this month, the pipeline division of TC Energy agrees to pay any bills incurred by the government in its response to the Keystone spill. The company agrees to recover all spilled oil, all oil-contaminated soil and vegetation, and to contain the further spread of oil in Mill Creek. The Environmental Protection Agency will oversee the cleanup. Curtis Carey, EPA's Director of Public Affairs, said in an email response that discharging pollutants into protected waterways is a violation of the Clean Water Act. But Carey says this agreement is part of EPA's regulatory enforcement process. Any penalties or injunctive relief would have to come from a separate, future enforcement action.
The Kansas Department of Health and Environment last week announced the results of weekly water testing along Mill Creek following the oil spill Dec. 8. The tests show improvements, notably "...a decrease in the concentration of contaminants over time, and a downward trend in contaminants on the Little Blue River." KDHE says a stream advisory remains in effect for Mill Creek between the pipeline spill and the Little Blue River. Officials warn area residents not to come into contact or allow pets and livestock to contact the creek water.
Kansas Common crude at CHS in McPherson starts the week at $70 a barrel after jumping a dollar-and-a-quarter on Friday. That's half a dollar less than the price on the first of January.
Crude prices in New York posted six dollars gains last week, settling Friday at $79.86 per barrel for the benchmark contract. In morning trading Monday, the near-month Nymex contract for light sweet crude dropped below $79. London Brent was also slightly lower, with prices just over $84 per barrel.
So far this year, 29 operators have drilled 40 wells across Kansas with total footage estimated just over 40,000 feet. Independent Oil & Gas Service is monitoring 489 new wells in various stages of drilling and completion. Drilling was underway on a lease in Barton County Friday, and operators in Ellis County were about to spud two new wells.
Operators across the state completed 51 wells last week, 99 so far this year. Independent Oil & Gas Service says that includes 32 in Western Kansas, with one new completion in Barton County, three in Ellis County, and one in Stafford County,
Kansas regulators OK'd 29 new drilling locations across the state, 46 so far this year, including one new drilling permit each in Barton, Ellis and Stafford counties.
In a monthly energy analysis the government predicts a decline in future energy consumption, rising energy production and dramatically lower profit margins at US refineries. That could lead to a big drop in diesel prices. The EIA says pump prices for diesel could drop about forty cents a gallon by the end of this year and another half dollar by the end of next year.
US crude inventories posted a dramatic increase last week. The Energy Information Administration says stockpiles increased by 19-million barrels to 439.6 million barrels as of Jan. 6. EIA says inventories are about one percent above the five-year average for this time of year.
The government reported the best weekly US production tally since April of 2020. Operators pumped 12.248 million barrels per day in the week through January 6th. That's up nearly 200,000 barrels from the week before and more than half a million barrels higher than a year ago.
Crude imports averaged 6.4 million barrels per day last week, an increase of 637,000 barrels per day from the week before. Imports are down about three percent from a year ago, based on the four-week average.