Comprehensive Energy Data Intelligence

Information About Energy Companies, Their Assets, Market Deals, Industry Documents and More...

SCOOP/STACK Midstream Developments. Pipeline Projects Driving Gas Prices. Challenge of Getting Water for Fracking

Positive Outlook on SCOOP / STACK’s Blue Mountain Midstream’s Pipeline System

Blue Mountain Midstream LLC Company operating in Merge play as well as in SCOOP and STACK plays, OK, continues to be a “fast-growing business”. Being a 100% subsidiary of the Riviera Resources, Inc., a recent spin-off from Linn Energy, Blue Mountain Midstream is said by David Rottino, Riviera’s president and CEO, during the recent company’s earnings call to remain one of its “tremendous growth assets”.
Blue Mountain provides natural gas, crude oil and natural gas liquids service solutions in the mentioned area. (See this on Rextag's map above).

Christmas Season Decorative Lighting and Power Demand. Does This Still Affect Gas Prices? (Or Have New Pipeline Projects Changed this Pattern?)

According to research (by EnVantage Inc.), a 10% increase in power demand near Christmas and the New Year was historically attributed to decorative lighting. Although diminishing due to the slow adoption of LED, this year the effect is hard to trace due to extreme volatility. Waha Hub prices were fluctuating from $3.85 /MMBtu on Nov. 13 down to $0.30 /MMBtu in two weeks and up to $1.36 /MMBtu by December 4.
Most of the movement is attributed to the excessive gas supply from Midland basin. The latter was a by-product (associated gas) from additional oil output delivered from Midland to Colorado City and Wichita Falls along newly introduced Sunrise Pipeline expansion by Plains All American LP. Estimated at over 750 MMcfd it contributed to the Waha plunging prices.
NGL prices likewise are thought to be affected by prospects of another group of pipelines under construction: Mariner East 1 and Mariner East 2 pipelines by Sunoco. Located in Pennsylvania, the pipelines are intended to facilitate the transfer of Natural Gas Liquids from the Utica and Marcellus Shale Formations to ports on the East, where ethane, butane, pentane, propane mixes will be exported.

Fracking Water Demand: Challenges and Their Treatment Approaches

It has been pointed out by experts that “rig count correlates with water source needs”. If a region lacks water-handling assets then development slows to a stop. Companies need to procure both water to drill and means of its future disposal. Cost is the main concern here.
The issue may be resolved by one of the following approaches:

Adjusting the existing pipelines to become water-dedicated for bringing new water to the area.
Use treated water from nearby municipals. (Several projects are being discussed in Oklahoma City in the Midcontinent, Carlsbad, N.M., and Odessa and Midland, Texas). However, supply of the treated water is quite limited so this will remain a niche market.
Reuse of already produced water for frack jobs. This approach can be taken by regional players who would provide dedicated systems in place to handle all: gas, oil and water for their local customers.

If you are looking for more information about energy companies, their assets, and energy deals, please, contact our sales office mapping@hartenergy.com, Tel. 619-349-4970 or SCHEDULE A DEMO to learn how Rextag can help you leverage energy data for your business.

FREE TRIAL

Midstream

U.S. Crude Breakevens at Less Than $50/Bbl - Pipelines Help

U.S. Shale Breakevens now at $50 instead of $68/bbl. Pipeline management (field and maintenance data), as well as new projects introduced lower operation costs and provide path to future industrial success.

Energy Transfer's lead in the world's NGL exports booked the company another successive quarter. With a global market share of almost 20%, the company is nigh unstoppable. But will it be enough to, finally, push the Mariner East project over the edge? If everything goes as planned, Mariner East's last segment could be operational by the end of the first half of 2022.

Rangeland Energy has agreed to sell Rangeland Midstream Canada to Kingston Midstream Alberta and remains committed to future Canadian midstream investments. Texas-based Rangeland Energy, supported by financial partner EnCap Flatrock Midstream, has inked a deal to sell its Canadian subsidiary, Rangeland Midstream Canada Ltd., to Calgary's Kingston Midstream Alberta Ltd. for cash.

The merger between ONEOK and Magellan received approval from Magellan shareholders, securing just 55% of the total votes at Magellan’s meeting on Sept. 21. ONEOK Inc. has successfully concluded the acquisition of Magellan Midstream Partners LP on Sept. 25. The deal will bring together their respective assets and expertise, resulting in a powerful entity boasting an extensive network of approximately 25,000 miles of pipelines primarily focused on transporting liquids.

Viper Energy's deal, comprised of cash and equity, secures an additional 2,800 net royalty acres in the Midland Basin and 1,800 in the Delaware Basin. Viper Energy Partners LP, a Diamondback Energy Inc. subsidiary, has inked a deal to acquire mineral and royalty interests in the Permian Basin. The deal, valued at around $1 billion, is with Warwick Capital Partners and GRP Energy Capital. Viper was established by Diamondback with the purpose of owning, purchasing, and capitalizing on oil and natural gas assets in North America, specifically targeting mineral and royalty interests.

2023 blog posts