SoCalGas Gets OK For Local Electric Power

With solar and wind power making distributed generation an increasing factor in California’s socalgas_logoenergy market, utilities face the challenge of covering their fixed costs. A new tariff issued by California to Sempra Energy’s Southern California Gas Co. aims to benefit utilities and their customers.

The state’s Public Service Commission has issued its first Distributed Energy Resources Service (DERS) tariff to SoCalGas. The DERS tariff allows SoCalGas to own and operate Combined Heat and Power (CHP) facilities on or near a customer’s location, and provide output from the CHP to the customer at regulated prices.

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Chevron’s 2016 Capital Budget Is $26.6 Billion

Chevron Corporation (NYSE: CVX) announced a $26.6 billion capital and exploratory investment chevron_logoprogram for 2016, including $4.5 billion of expenditures by affiliates. The 2016 budget is 24% lower than investments for 2015.

“Our capital budget will enable us to complete and ramp-up projects under construction, fund high return, short-cycle investments, preserve options for viable long-cycle projects, and ensure safe, reliable operations,” said John Watson, Chairman and CEO of San Ramon-based Chevron.

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OPEC Again Fails to Limit Production

Despite pressure from some of its member countries,  OPEC (The Organization of the Petroleum opec_logo_200Exporting Countries) ended a contentious six-hour biennial meeting in Vienna on Dec. 4 without any agreement to restrain crude oil production.

The outcome was not unexpected, as OPEC had failed to limit output by its member countries at two previous meetings. But it meant that members would continue operating their fields at near-record levels at a time when the global market is oversupplied.

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DOGGR’s Steven Bohlen Resigns

Steven Bohlen

Steven Bohlen

Dr. Steven Bohlen, supervisor of the state Division of Oil, Gas and Geothermal Resources (DOGGR), has resigned after 17 months running the agency.

Gov. Jerry Brown has appointed Kenneth A. Harris, executive officer of the Central Coast Regional Water Quality Control Board, to replace Bohlen. Harris has 25 years of experience with the State Water Board. He holds bachelor’s degrees in earth science and water science and a master’s degree in hydrology, and is a licensed professional geologist.

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Regulators Order Emptying of Pipeline

Federal regulators have ordered Plains Pipeline, LP, to remove the crude oil remaining in an idle plains_pipeline_logopipeline that runs from the Santa Barbara coast to Kern County, and to take other corrective action following a failure in the system on May 19 that spilled 2,500 barrels of heavy crude on the coastline.

The actions were taken by the Pipeline and Hazardous Materials Safety Administration (PHMSA) of the U.S. Department of Transportation. They affect Plains Pipeline’s Line 901 and 903.

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Kern County Approves Petroleum Ordinance and EIR

kern_county_sealAfter a day-long hearing, the Kern County Board of Supervisors adopted an ordinance implementing a new land use approval process for oil and gas exploration, extraction, operation and production activities, and also accepted an accompanying environmental impact report.

Environmental groups had opposed the ordinance, and several have told the county that they will go to court to oppose the ordinance.

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