Outrigger Out to Conquer The West

Outrigger Out to Conquer The West

Wasn’t quite four years ago Outrigger Energy said adios to its West Texas operations with the $1.5 billion sale of its Permian midstream assets to Targa Resources. But the company hardly looked to sever ties with The West. Denver-based Outrigger had already built a sizeable crude oil gathering system in the Powder River Basin. So, flush with cash and private equity capital, Outrigger said hello darlin’ to the DJ, where it constructed a midstream system in Weld Co., Colo., that includes natural gas, crude oil, and produced water gathering pipelines. The company also purchased a 60 MMCFD cryogenic processing plant that went into service last year. Next up, how’s it goin’ Williston? With a sweet midstream commitment from XTO, Outrigger announced in January plans to build a 70-mile rich gas gathering system and a 200 MMCFD processing facility. Even today, some pipe dreams come true. Outrigger now has received the official regulatory nod from N.D., to continue construction on the plant and two pipelines that will flow residue gas and NGLs from the plant to major pipeline interconnects.

Outrigger Energy

Outrigger Energy II LLC is a private, full service midstream energy company specializing in greenfield project development with current systems operating and under construction in the DJ and Williston Basins.  The company was formed in 2017 after Outrigger Energy LLC sold its assets to Targa Resources and Tallgrass Energy Partners.

www.outriggerenergy.com

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

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The New Pipeline Landscape vs the Law of Diminishing Returns

The New Pipeline Landscape vs the Law of Diminishing Returns

The nation’s pipeline projects this year have met with volcanic reactions that canceled three majors in the Eastern Atlantic, stalled several others, and turned upside down at least three already in service. These are the facts at hand, which now bring even greater challenges to natural gas and power utilities in need of more fuel to meet consumer demand; refineries that require feedstock; petrochemical facilities that depend on supplies to produce raw materials used globally; and U.S. producers who transport oil and gas to end markets. If the current pipeline landscape subsists, the aftereffects are predicted to bring seriously diminishing returns in an era of carbon-neutral goals.

Rystad Energy

Rystad Energy is an independent energy research and business intelligence company providing data, tools, analytics and consultancy services to the global energy industry. Their products and services cover energy fundamentals and the global and regional upstream, oilfield services and renewable energy industries, tailored to analysts, managers and executives alike. 

www.rystadenergy.com

The nation’s pipeline projects this year have met with volcanic reactions that canceled three majors in the Eastern Atlantic, stalled several others, and turned upside down at least three already in service. These are the facts at hand, which now bring even greater challenges to natural gas and power utilities in need of more fuel to meet consumer demand; refineries that require feedstock; petrochemical facilities that depend on supplies to produce raw materials used globally; and U.S. producers who transport oil and gas to end markets. If the current pipeline landscape subsists, the aftereffects are predicted to bring seriously diminishing returns in an era of carbon-neutral goals.

According to Rystad Energy, if the Dakota Access Pipeline (DAPL) is shut down in August following a July court mandate to halt operations and empty its line of Bakken crude oil, an initial 300,000 BPD will have to be transported by rail. The DAPL is the largest outbound Bakken pipeline, which means other pipelines and refineries will need to absorb at least 900,000 BPD. And as far as those “other” pipelines, the DAPL ruling came on the heels of a court-ordered closure earlier in July of the Bakken’s Tesoro High Plains Pipeline that’s been in operation for 67 years. As curtailed volumes in the Bakken are expected to come back online later this year, Rystad foresees significant bottlenecks ahead with the lack of primary exit routes. This suggests more rail, more trucks, more flaring, and more emissions. Again, diminishing returns.

Rystad also predicts gas output from the Permian will rebound during the second half of this year and is expected to return to record levels by late 2021. That’s the good news. The bad news is that regulatory obstacles and belt-tightening have delayed or put on hold several pipelines to feed supplies to the East Coast, Gulf Coast LNG facilities, and Mexico. With the need for new gas takeaway projects from the Permian beginning in 2023, Rystad estimates another period of increased gas flaring citing it’s highly possible that any new pipelines will be approved too late, resulting again in a situation with insufficient infrastructure.

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DCP Midstream to Implement Groundbreaking Emissions Technology Across Its Natural Gas Assets

DCP Midstream to Implement Groundbreaking Emissions Technology Across Its Natural Gas Assets

In what could be among the strongest mandates in the nation to dramatically reduce emissions from oil and gas production and midstream operations, the state of N.M., has announced new proposed standards to capture at least 98% of methane by 2026. This comes following plans already underway in Colo., and Pa., as well as the latest methane rules in Texas and N.D. The planned regulations in N.M., would give operators flexibility to choose the emissions-reduction technology of their choice while encouraging new innovations to rein in greenhouse gases.

DCP Midstream

DCP Midstream Partners, LP is a Fortune 500 company for midstream petroleum services, headquartered in Denver, Colorado. As a publicly traded partnership, the company does not have directors, officers, or employees of its own, but relies on its general partner for managing its operations.

www.dcpmidstream.com

For Denver-based DCP Midstream, finding the right emissions-reduction technology for its widespread operations began nearly two years ago. DCP is among the nation’s leading processors of natural gas. The company produces on average 400,000 BPD of NGLs, and transports and stores both hydrocarbons in the nation’s largest oil and gas basins. The company in 2019 began piloting a sophisticated airborne methane monitoring and advanced data analytics system from Calif-based Kairos Aerospace. With testing now completed, DCP has announced it will deploy the technology across its operations in Texas, N.M., and Colo., in what will be the largest industry-led methane survey to date.

Founded in 2014, Kairos has emerged as a leading provider of large-scale aerial monitoring of methane emissions. Last year, the company flew more than 135,000 miles in the Permian, completing the largest aerial survey of methane emissions ever conducted.

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Executive Profile: George Kaiser, Kaiser-Francis Oil Co.

Executive Profile: George Kaiser, Kaiser-Francis Oil Co.

“In the charitable world as in the business world, opportunities should drive budgets, not the other way around.”

In one succinct quote, George Kaiser offers up every puzzle piece needed to understand the man and his philosophies on money, business, and philanthropy. All are inextricably linked. He’s an invisible billionaire of sorts, who swats away any ranking of himself as one of the wealthiest in the world like frivolous, disposable news. If you don’t live in his beloved birthplace of Tulsa, Okla., you may never have heard his name—and that suits Kaiser perfectly fine.

Kaiser Francis Oil Co.

Kaiser-Francis Oil Company is a Tulsa-based oil and gas exploration and production company.

www.kfoc.net

Fiercely private, Kaiser shuns publicity, never attends society functions, and hardly ever grants interviews. He doesn’t own big-bucks toys like vacation homes, exotic cars, airplanes or yachts. He wears a cheap watch and always flies coach. Kaiser’s passions instead lie equally in his businesses and charitable investments. He commits half his 70-hour work week to each, so the first can finance the other.

George Kaiser quietly owns empires in oil and gas, banking, and private equity. His father, an attorney, fled Nazi Germany in 1933 and ultimately landed in Tulsa where the family finally settled in 1940. George was born two years later. He went on to earn a Harvard MBA then joined his father and uncle at their small E&P known as Kaiser-Francis Oil Co. When his father passed in 1969, Kaiser bought out his uncle and over a short time grew Kaiser-Francis into one of the most successful upstream operators in the nation. The company currently operates in Okla., Texas, N.M., Wyo., N.D., and La.

Following the rapid growth of his oil and gas company, Kaiser in 1991 acquired Bank of Oklahoma for $60 million and a 60% ownership, launching his personal wealth into the stratosphere. He created Argonaut Private Equity in 2002, which today manages billion-dollar investments in 19 companies including those energy related. He’s also a tireless champion for education and recovery among the city’s impoverished and marginalized.

But Kaiser doesn’t believe in check-writing handouts. Through his George Kaiser Family Foundation, the now 78-year-old develops and finances ground-breaking programs and initiatives that merge every requirement to deliver meaningful results. He, along with other private investors, built the 100-acre Gathering Place in 2014—now a Tulsa icon intended to unite every socioeconomic group at a learning park uniquely created for everyone. Kaiser has invested more than $10 billion in Tulsa and its citizens, putting him third behind Warren Buffett and Bill and Melinda Gates as the largest American philanthropists. But there’s that annoying ranking again.

Several years ago Warren Buffett famously quipped to Forbes, “I’d fight for the opportunity to be president of the George Kaiser fan club.”  Somehow, we don’t think he’s alone.

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