We Heard It Through the Pipeline

We Heard It Through the Pipeline

The state of Texas lays claim to the nation’s largest pipeline infrastructure at 479,798 miles. As a point of comparison, the circumference of Earth is about 24,901 miles. This means the amount of pipe sprawled beneath the surface of the Lone Star State alone could wrap around the globe more than 19 times. Those of us who run in midstream circles love sharing these kinds of impressive stats with friends and neighbors who try and picture just exactly how immense our national pipeline system really is. But in Texas, where everything is bigger right down to the chicken-fried steak, pipelines wear the coveted crown. Reese Energy Consulting today is studying the new updated report from the Texas Pipeline Association, which outlines the extraordinary economic benefits Texas pipelines generated in 2019. In short, of the 1,458 operators there contributing to $48.6 billion in overall economic impact, pipeline operations and construction accounted for 238,000+ high-paying jobs, $29.3 billion in gross state product, and an added infusion of $2.7+ billion in government revenues. We’re having a moment now.

What do you think?

Learn more about REC and our midstream services at www.ReeseEnergyConsulting.com.

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Pipelines Dangle New Carrots in Producer Deals

Pipelines Dangle New Carrots in Producer Deals

​Reviewing, evaluating, and negotiating contracts and agreements on behalf of producers and midstreamers has always been a big part of our business, but this year marks one the busiest as both parties adjust to the new-normal playing field. Shippers and midstream operators will always be codependent, with contracts and agreements between them to lock down the best rates and terms. When these are strategically negotiated, everyone wins. Producers get their supplies to the most lucrative markets and midstream operators earn their fees for processing and transporting those supplies. Then March happened and with it a confluence of fallout conditions that have resulted in pipelines offering fresh incentives for customers to stick with them. Sweeter terms, reduced rates upon contract renegotiation, and creative shipping options may be just the start. As negotiators, we know that preserving relationships is vital for both parties as they adapt and mutate in an uncertain environment for the benefit of each other. Interesting times for those of us on the bargaining end as the cards continue to shuffle.

What do you think?

Learn more about Reese Energy Consulting and our contract expertise at www.ReeseEnergyConsulting.com.

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The Real Horse Race Is Afoot in the Permian

The Real Horse Race Is Afoot in the Permian

Forget Churchill Downs and that blink-and-you’ll-miss-it Thoroughbred competition last weekend. The real horse race is pounding in the Permian, where oil and gas operators are filing for drilling permits faster than Authentic in the home stretch. Reese Energy Consulting today is following the latest news from the nation’s most prolific energy basin as producers scramble to secure their permits ahead of Nov. 3. With the presidential election a mere 53 days away, E&Ps with federal land assets in Texas and N.M., are hedging their bets six ways to Sunday. Permitting there is up 80% over the last three months. New Mexico this year has seen 85% of its well permits on federal lands vs state and private lands, with Matador and EOG bringing in the lion’s share. But, hey, you gotta hold on to what you’ve got. Matador expects to have 300 federal permits in N.M., by the end of the year; EOG has 2,500 on federal lands in four states.

What do you think?

Learn more about REC and our range of midstream services at www.ReeseEnergyConsulting.com.

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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

What do you think?

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

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