Union Pacific Railroad just announced handsome Q3 profits driven in large part by the US energy boom. Although crude oil shipments were down from the corresponding period last year, shipments of sand for hydraulic fracturing operations have been strong. Less expensive diesel fuel also helped the rail company’s bottom line. “Today you’re seeing lots of drilling in the Permian Basin, lots of drilling in the Eagle Ford [in Texas]… you see the Marcellus [in Pennsylvania] resuming the levels of drilling that they had a couple of years ago, and you see sand flowing to all of those places. It’s really driven by the economics of the shale play,” said Eric Butler, Union Pacific’s executive vice president. [Roll Call]
Citizens for Responsibility and Ethics in Washington (CREW), a watchdog group, is suing the EPA for failing to release documents regarding communication between oil industry lobbyists and Obama administration officials about the Renewable Fuel Standard. “It certainly seems as if the administration has backtracked on its commitment to renewable fuels. The question is why. Was there a back room deal orchestrated by big oil and high ranking officials in the Obama administration?” said Melanie Sloan, executive director of CREW. [The Hill]
Abu Dhabi’s renewable energy company Masdar is building the first large-scale wind farm in the Gulf Cooperation Council in Oman. The 50-megawatt wind farm will consist of 25 turbines and construction will begin in Q4 2015. “This project will deliver significant economic benefits,” said Eng Hamed al Magdheri, CEO of RAECO. “When completed, wind power will meet half of the Dhofar region’s energy needs during the winter. It will also reduce our reliance on traditional forms of energy, such as gas, which can be redirected toward more valuable industrial uses, while also extending the life of our hydrocarbon reserves.” [Masdar]