On the eve of the last day of a decade, it’s worth recognizing two extraordinary outgrowths of America’s energy renaissance that illustrate how our oil and gas industry continues to evolve. Maybe even at a faster pace than we’ve ever realized.
Magnolia LNG LLC, a wholly owned subsidiary of LNGL, is developing an 8 mtpa or greater LNG export terminal in Lake Charles, Louisiana, USA. The project site is on 115 acres adjacent to the Calcasieu Ship Channel, an established shipping channel in the Lake Charles District, State of Louisiana.
Bison is the largest privately held energy solutions company in Oklahoma. It is the #1 provider of water midstream solutions in the state, and is a market leader in trucking and logistics, environmental services, pipeline construction, midstream manufacturing and fabrication, and a wide range of other energy infrastructure solutions.
The rise of LNG as a commodity export ranks as one of those soaring outgrowths with large-, mid- and small-scale liquefaction terminals planned, under construction, or expanding. Spurred by our prodigious volumes of natural gas, this energy subsector is still in its infancy and, incredibly, one in which we will globally dominate in less than four years.
Seems we read news every day of inaugural tanker shipments, more train start-ups to increase capacity, new liquefaction technologies, and dedicated pipelines to transport gas supplies to our export facilities where they’ll be converted to LNG bound for destinations far and wide. For all the criticism levied on the oil and gas industry, American LNG is bringing clean energy to energy-impoverished nations and those looking to transition from coal-powered processes. Among the series of firsts we’ve witnessed this year, Australian and Houston-based Magnolia LNG announced last week a milestone move to supply Vietnam with 2 million MTPA of liquified natural gas from the company’s proposed LNG export terminal in Lake Charles, La. Also of note is that the fuel will be dedicated to generating electricity from a power plant originally planned to fire coal.
The second most impressive outgrowth has rendered itself an absolute must for fracking. Whether fresh from the aquifer or produced from fracking, the business of water storage, hauling, gathering, disposal, recycling and pipeline infrastructure has triggered explosive growth in the nation’s oil and gas basins. This subsector has seen a dizzying number of mergers and acquisitions this year and is quickly becoming a temptress by private equity groups as well. Consider this: Every horizontal well drilled requires between 100,000 to 1 MMBbls of water. And when you’re fracking in the desert environs of the Permian, activity tends to get mighty thirsty. Then, it’s time to do something responsible with all that wastewater and start all over again with fresh.
For Okla. City-based Bison, the need for water management is filling its coffers like never before. The company recently announced yet another acquisition in the Anadarko’s SCOOP, making it the largest provider of water midstream solutions in the state. Water management has now become a $34 billion a year enterprise—and growing. As oil and gas production rises so does the need for more water. For an element once considered an afterthought by drillers, water is now the first consideration to bring oil and gas production online.
What do you think? Oh, and Happy New Year.