‘We’ll Take Natural Gas for $500, Alex’

‘We’ll Take Natural Gas for $500, Alex’

Following last week’s Texas debacle, common sense suggests that every form of energy—fossil fuels, nuclear, and renewables—are, and will be, critical to fuel the world in the foreseeable future. Not one, not two, but all the above at work to power and heat homes and industries, avoid catastrophic outage events, and still reduce emissions. Reese Energy Consulting today is studying the latest news from the IEA that sets out the huge role natural gas will continue to play as both a primary and transitional fuel well into 2050. According to the report, U.S. gas consumption by the industrial sector alone will increase by 3.6 TCF—or 35%–between 2020 and 2050 and account for more than 75% of the 4.6 TCF growth in production. Our fast-growing chemicals industry will consume a mighty chunk of that gas for use as feedstock with the power sector following close behind. The IEA also expects natural gas to pick up more steam beyond 2040 as the dominant fuel for heavy-duty vehicles, freight rail, and LNG production.

What do you think? Learn more about Reese Energy Consulting and our range of natural gas services and decades-long expertise at www.ReeseEnergyConsulting.com.

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A Big Cha-Ching in Pipeline Land

A Big Cha-Ching in Pipeline Land

Boston-based private equity firm ArcLight may have just scored the investment deal of a lifetime. Reese Energy Consulting today is following the latest news from Houston-based Kinder Morgan and equity partner Brookfield Infrastructure Partners, which now have sold a 25% joint interest in Natural Gas Pipeline Company of America for $830 million. The enterprise value of that minority interest, however, is more in the neighborhood of $5.2 billion. NGPL not only ranks as the largest natural gas pipeline to serve high-demand Chicago-area markets, it’s also one of the largest in the nation at more than 9,100 miles. The system provides customer access to all major gas supply basins, interconnects with numerous intrastate and interstate systems, and offers 288 BCF of storage. Upon closing next month, KM and Brookfield each will retain a $37.5% interest in NGPL, and Kinder Morgan will continue to operate the pipeline. Boston-based ArcLight Capital Partners manages energy investments focused on midstream, power, and production infrastructure.

 

Arclight Capital

Founded in 2001, ArcLight helped pioneer an asset-based private equity approach to investing in the dynamic energy sector. They have invested approximately $23 billion in 110 transactions since inception, generating strong realized returns for their limited partners from 69 exits across diverse market cycles.

www.arclight.com

What do you think? Learn more about Reese Energy Consulting and our wealth of natural gas services and expertise at www.ReeseEnergyConsulting.com.

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Frozen. No Longer Just a Disney Movie

Frozen. No Longer Just a Disney Movie

One of our Reese Energy Consulting team members received this question yesterday: “I live in Wyoming and we’ve never experienced anything like the number of frozen wells and gas plants in Texas. What’s up?” REC reached out to our friend Justin Mecklenburg, CEO of Okla.-based NeoInsulation, for an answer. Mecklenburg echoes The Houston Chronicle’s latest report as a lack of winterization—especially insulation—on vulnerable back pressure and ball valves and pipes that simply can’t withstand 7-14 days of prolonged exposure to Arctic temps and ice. Old-school insulation without heat trace, he says, won’t cut it—something Texas and Okla., found out the hard way with frozen wells and gas plants. Neo’s patented insulation along with heat trace technology have resulted in more than 3,000 zero-fail installations, including current operations still humming along in both states. It’s a small investment, Mecklenburg adds, when you consider losing thousands if not millions a day.

Neoinsulation

NeoInsulation provides revolutionary, state of the art protective solutions for the oil & gas and industrial industries through its patented insulation applications.

www.neoinsulation.com

What do you think? Learn more about Reese Energy Consulting and our natural gas, LNG, and midstream expertise and services at www.ReeseEnergyConsulting.com.

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