A Water Wonder in the Eagle Ford

A Water Wonder in the Eagle Ford

Out of the shale revolution, wastewater production, disposal and recycling have birthed a midstream industry all its own. One barrel of oil extracted generally yields half a barrel of wastewater. To put this in perspective, between 2011 and 2016 the volumes of wastewater from fracking rose an extraordinary 1,440%. And in areas like Texas and N.M. where one well can require millions of gallons of water to frack in the mostly desert climes, advanced wastewater solutions have become big business.

EVX Midstream

EVX Midstream Partners LLC is a next generation midstream company focused on acquiring, developing and operating crude oil, natural gas, and produced water gathering, recycling and disposal assets in environmentally meaningful and innovative ways. EVX was founded by Herb Chambers IV, Charlie Flynn and Brian Kellar, in partnership with Five Point Energy.

www.evxmidstream.com

Houston-based EVX Midstream is one of those wastewater solutions providers that this year fixed its sights on the Texas Eagle Ford, where the latest figures put wastewater production close to 10 million gallons per well. That’s equivalent to 15 Olympic-sized swimming pools. As a side note, following in the footsteps of neighbor N.M., Texas could soon enact binding regulations for producers to environmentally dispose and recycle the wastewater produced by fracking. But EVX isn’t waiting around. The company recently announced completion of the phase one of construction of what will be the largest gathering system for oilfield wastewater in the Eagle Ford.

EVX in September completed more than 300 miles of water-gathering pipeline, which will connect to its 26 saltwater disposal wells that can inject up to 600,000 Bbls of water per day. Most impressively, EVX is laying a new high-temperature plastic pipe which can substantially cut carbon emissions, withstand higher temperatures, and eliminate as many as 250,000 heavy-haul truck trips every year—all in the first phase of the project.

What do you think?

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Resurgence in the Haynesville

Resurgence in the Haynesville

The suits at BP describe the Haynesville shale as “the most revenue generating gas play in the U.S.” Since its discovery in 2008 by Okla. City-based Chesapeake, this gas-rich play has been estimated to hold more than 304+ TCF of recoverable natural gas. The future looked bright back then, and the big dog independents and supermajors soon came hunting to sniff out a bone of their own. By 2010, the Haynesville boasted more drilling rigs than any other play in the country.

But as the story goes in the world of oil and gas, nothing stays the same for long. Depressed gas prices followed with a monumental glut of supplies from across the nation as though we’d opened a Pandora’s Box. The U.S. was christened the world’s leading producer of natural gas, but what to do with it all? Then, quite amazingly, out of the ashes of oversupply, the LNG export industry was born. The rest, as they say, is history.

But back to the Haynesville. Over the last few years of industry consolidation and power shifts, the Haynesville has witnessed a resurgence of natural gas drilling with production bound for Gulf Coast LNG export. Independents like Comstock are snapping up acreage positions like a hungry bayou gator, with the expressed intention to flow that gas directly to Gulf export terminals only 200 miles away.

Midstream companies, too, are zeroing in on the Haynesville action. Houston-based Enterprise plans to expand its Haynesville gas pipeline to deliver 2.1 BCFD to the Gulf. Okla. City-based Enable looks to build the 135-mile Gulf Run Pipeline. Michigan-based DTE Midstream last month paid $2.25 billion for a natural gas gathering system in the Haynesville with plans to build a 150-mile pipeline connecting to multiple downstream pipelines that terminate at the Gulf. And most recently this month, Texas-based Align Midstream and Elevate Midstream combined their Haynesville assets with all eyes on LNG exports.

Looks like things are heating back up in the South. What do you think?

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Company Profile:  Blue Mountain Midstream

Company Profile: Blue Mountain Midstream

In Oklahoma’s SCOOP and STACK plays, Blue Mountain Midstream is offering up a cool drink of water for producers thirsty for infrastructure. In the heart of the Anadarko, where pipeline capacity limitations and lack of connectivity have curtailed drilling programs, Blue Mountain is rising to the summit to build the midstream assets that courier oil, gas and NGLs to top-paying markets.

Blue Mountain Midstream

From the wellhead to market, Blue Mountain Midstream, a subsidiary of Riviera Resources, Inc., is committed to delivering peak performance by efficiently accessing new and expanding markets. They provide flexible and innovative natural gas, crude oil and natural gas liquids service solutions backed by responsive and reliable customer service.

www.bluemountainmidstream.com

Blue Mountain, a subsidiary of Houston-based Riviera Resources, operates a 100-mile natural gas-gathering system in the SCOOP/STACK and a gas processing plant that offers 250 MMCFD of cryogenic gas processing capacity. The company’s water gathering system spans 100,000 acres across 67 townships in western Oklahoma. But this Anadarko-focused midstreamer isn’t quite digging yet.

Shovel? Meet dirt.

In July, Blue Mountain launched an open season for an initial 50-mile crude oil gathering pipeline and another 100-mile water-gathering system in the Anadarko. Responses came quick. During the company’s 3Q ending this month, Blue Mountain entered into a long-term, fee-based crude oil-gathering agreement with Roan Resources and placed into service its water gathering pipelines connecting to 14 Roan pads. Okla. City-based Roan was acquired last month for $1 billion by Tulsa-based Citizen Energy.

Blue Mountain also closed this quarter with its acquisition of Tulsa, Okla-based Lumen Midstream, which brought the company an added 55 miles of gas-gathering pipelines and an 18 MMCFD processing plant now connected to the Blue Mountain system.

What do you think?

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EnLink and the Return of Barry Davis

EnLink and the Return of Barry Davis

When Barry Davis stepped down from his role as CEO of Dallas-based EnLink a year and a half ago, the oil and gas shale industry was in full throttle and midstream companies had emerged as the prettiest girl at the dance. An average $63 in oil prices, record production and an on-going demand for oil and gas infrastructure further galvanized midstreamers to build and expand those vital bones.

EnLink Midstream

EnLink Midstream reliably operates a differentiated midstream platform that is built for long-term, sustainable value creation. EnLink’s best-in-class services span the midstream value chain, providing natural gas, crude oil, condensate, and NGL capabilities. Our integrated asset platforms are strategically located in premier production basins and core demand centers, including the Permian Basin, Oklahoma, North Texas, and the Gulf Coast.

www.enlink.com

But this previous CEO wasn’t content to sit on the sidelines.

Taking a seat as executive chairman on the EnLink board, Davis had a lot to be proud of after leading the company’s remarkable growth from 2014-2018. He watched the company flourish to more than 12,000 miles of gathering and transportation pipelines, 21 processing plants, numerous barge and rail terminals, storage facilities and an extensive crude oil trucking fleet. All of these in the core areas of Texas, NM., Okla., La., the Gulf Coast, and across the Ohio River Valley. In the four years under Davis’ leadership, EnLink became a Fortune 500 company with more than $7 billion in revenues.

But true visionaries are hard to replace no matter what the successes of their incumbent. And in the case of EnLink, Barry Davis brought the passion and foresight to write the next chapter of the company he helped form. In August, Davis reclaimed his position as CEO to accelerate EnLink’s growth strategy in what is now a hyper-challenging environment of oversupply, lower oil and gas prices, and decreased volumes across the pipeline.

Although EnLink projects a net loss for this year, Davis has created an execution strategy already in progress to respond to the industry’s market conditions, including $75 million in cost reductions and a 50% cut in 2020 capital expenditures. Hard not to rally around a man with a plan.

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High Exportations for the South Texas Coast

High Exportations for the South Texas Coast

​​RMR today is following news from FERC, which just announced approval for construction of four LNG export facilities in the Texas Gulf Coast.  More than four dozen LNG projects currently are in development in the U.S., Canada and Mexico—all of which underscore the rapid build-up of a prospering new industry in which the U.S. is expected to dominate within the next five years. The FERC says it now has completed work on applications for 11 export projects over the last nine months. Another four projects are pending.

The most recent proposals include three greenfield LNG facilities in Brownsville, Texas, and expansion of another in Corpus Christi. The Brownsville projects will include more than $38 billion of private investment. Houston-based Cheniere’s expansion at Corpus will allow for seven more trains at the site in addition to the two it currently operates, while a third is under construction. A $380 million project to deepen and widen the ship channel to accommodate large tankers launched in May.

But for Corpus Christi, LNG export terminals aren’t the only business changing the face of the port. According to a new report by global research firm Wood Mackenzie, the Port of Corpus Christi is set to become the top U.S. crude oil export hub over the next 10 years with volumes expected to quadruple in the next five.

What do you think?

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