The Texas energy industry news has been mostly negative lately with reports of profits dropping and job cuts. However, it appears that some good news is finally appearing for this sector. There have been statements released regarding new facilities being created, and there has been news regarding the lifting of the ban on crude oil exports. Let’s take a closer look at these developing stories in Texas.
It appears the U.S. Department of Commerce has announced that licenses have been approved for swaps to take place among American light crude oil and heavy crude oil from Mexico. The U.S. is closer to a lift on the ban set in place that makes the trading of crude oil illegal. This comes as good news to those involved with the Eagle Ford Shale and other shale entities. The change also fixes an issue that both countries are currently facing in the processing of crude oil. U.S. refineries can process light crude oil but are fully equipped to handle heavy crude oil. Meanwhile, the refineries in Mexico are known for their ability to process light crude oil more effectively.
More good news comes from Yuhuang Chemical Inc., which announced their intentions to add to the growth of their Houston workforce. This North American subsidiary of the China-based Shandong Yuhuang Chemical Co. Ltd. has already exhibited steady growth that is evident by their 55 corporate jobs that have already been added in Houston. These jobs have been created because of the development of the energy company’s methanol production complex that is located in Louisiana. Another development for Yuhuang Chemical was announced last week concerning the transportation of the gas they produce on the Transcontinental Gas Pipe Line to serve the Louisiana complex.
In other news, Bentek Energy recently released data that revealed that the consumption of natural gas in Texas has reached a record high. The EIA used this data to show that Texas power plants averaged around 4.5 billion cubic feet of natural gas being used per day. Levels of usage have not been this high since 2012. The EIA cites the increase in usage as a result of the weather and the capacity of the natural gas.
The city of Plano, which is north of Dallas, will soon be home to a $300 million power-measuring data center. This project, which is said to be one of the first of its kind, is being developed by Aligned Data Centers, a subsidiary of Danbury. What is the purpose of this facility? It will bring Aligned Data Centers self-made model of leasing megawatts to those who pay on only what they use instead of the leasing terms that are currently setup on a per megawatt basis.
While new projects and facilities are getting their start others are closing. National Oilwell Varco (NYSE: NOV) announced that they would be closing their Fiber Glass Systems facility. The facility that is located in Mineral Wells is scheduled to close within the next several months. The Houston-based energy company also plans to close a facility in Willis. Both closures will affect over 200 workers who are currently employed in these two facilities.