Maybe Grease Really Is ‘The Word’

Maybe Grease Really Is ‘The Word’

The next time you order a burger and fries, you just might help a refinery reduce emissions. At least four refiners this year have stepped forward with plans to convert their existing facilities from diesel produced from crude, to renewable diesel produced from cooking oil.

Phillips 66, Marathon, CVR Energy, and HollyFrontier have ramped up their projects amid the slowdown in gasoline demand. Phillips 66 in August announced plans to repurpose its refinery in Rodeo, Calif., to produce 100% renewable fuels from oils, fats, and greases. Retooling is expected to take 18-20 months. Once operational, Rodeo Renewed will produce more than 800 million gallons a year, making it the largest plant of its kind in the world. Acquiring enough greasy supplies for use as feedstock, however, could pose its own challenges. Curiously, the U.S. doesn’t produce enough. Getting ahead of the demand, Valero has inked a deal for fats and used cooking oil with Darling Ingredients, which collects and converts animal-based products across the globe. So, the next time you hear “Fries with that?” yep, you know what to say.

What do you think? Learn more about Reese Energy Consulting at www.ReeseEnergyConsulting.com.

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Barron Petroleum Strikes Paydirt

Barron Petroleum Strikes Paydirt

In the Land of West Texas, some things are inextricably linked. Like family-owned cattle farms that set atop acres of oil-rich minerals, and inherited legacies that—for the most part—go quietly unpronounced until a big discovery stirs up talk. Such is the case with Barron Petroleum headquartered in Graham, Texas, a three-and-a-half-hour drive from Midland. Don’t bother looking for a website; Barron doesn’t have one. The tiny company comprises CEO Roger Sahota, his wife and three sons, and they’ve announced a Texas-size oil and gas find.

Situated on one 13,000-acre lease in Val Verde County, Texas, the Barron site holds an estimated 417 BCF of natural gas and 74.2 MMBbls of crude oil reserves. A Fort Worth petroleum engineer, who completed an evaluation of the potential oil and gas reserves, described the field as a low-risk, high-volume, high-rate drilling opportunity that “more resembles that of a development project than an exploration venture.” Sixty new wells are planned and Sahota’s shopping for a pipeline. What do you think?

EVX Midstream

Barron Petroleum LLC is a privately held company engaged in the oil and gas exploration & production business. The company has primarily focused on drilling oil wells, gas wells and working over existing oil and gas wells in the Permian Basin and Fort-Worth Basin in the State of Texas. 

www.barronpetroleum.com

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What’s Mine Is Now Yours

What’s Mine Is Now Yours

After a year plagued with disappointments and back-to-square-ones, Houston-based Occidental Petroleum finally has something to smile about. In the company’s efforts to reduce its debt load by more than $2 billion by year end, Oxy has scored a big win with the $1.33 billion sale of 4.5 million mineral acres and 1 million surface acres in Wyo., Colo., and Utah.

Occidental Petroleum

Occidental Petroleum Corporation is an American company engaged in hydrocarbon exploration in the United States, the Middle East, and Colombia as well as petrochemical manufacturing in the United States, Canada, and Chile. It is organized in Delaware and headquartered in Houston.

www.oxy.com

The deal also includes mineral rights to the world’s largest trona deposit. When refined into soda ash, trona is a key element to manufacture glass, paper products, laundry detergents, and even baking soda. Not surprisingly, the winning bidder knows a thing or two about mining. N.Y.-based, private equity firm Orion Mine Finance was one of 13 bidders on the package and invests exclusively in base and precious metals operations across the globe. For now, Occidental will keep its oil and gas assets in the Rockies, specifically in the DJ and Powder River basins. The sale is expected to close in 4Q. Oxy inherited the Rockies’ spread as part of its $38 billion purchase of Anadarko Petroleum last year, making the company the largest landowner in the state of Wyo.

What do you think?

Learn more about Reese Energy Consulting at www.ReeseEnergyConsulting.com.

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DOE Sets Aside $33 Million to Rehab Old Gas Pipelines

DOE Sets Aside $33 Million to Rehab Old Gas Pipelines

​At least 10 of the nation’s natural gas utilities are about to receive a long overdue overhaul of its pipeline distribution systems. The Dept. of Energy announced last February that it had earmarked funds to rehabilitate natural gas pipelines originally constructed in the 1800s with cast iron, and later in the 1930s with wrought iron—both of which have become a contentious source of leaks and failures. But hey, it’s only been 90 to 220 years. What do you expect from a great-great-great grandparent pulling hard overtime?

Nevertheless, the legacy pipes identified comprise 3% of the nearly two million miles of utility pipelines in operation today, and the time arrived earlier this year to create a new government program cleverly coined REPAIR (Rapid Encapsulation of Pipelines Avoiding Intensive Replacement) to rehab those transmission soldiers of a certain age. Now, with $33 million in hand, The REPAIR initiative is ready to rock and roll, and will include the addition of “smart” coatings to line the inside of the identified pipelines using 3D mapping tools and robotic tools—essentially creating new pipe inside the aged pipe. The coating technology is expected to have a minimum lifespan of 50 years, even if the outer pipe eventually succumbs (which of course it will).  As a comparison, the DOE says excavation and complete replacement of the original pipelines would otherwise cost up to $10 million per mile.

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