Archive for the Gas Industry Category

Statoil Takes Helm at Eagle Ford Asset

Posted in Gas Industry, Oil Drilling, R&J Technical Services with tags , , , , , , on July 1, 2013 by amandarandjtech
by  Statoil ASA
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Press Release

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Monday, July 01, 2013

Statoil announced Monday that the company as of July 1 has assumed operatorship for all activities in the eastern part of its Eagle Ford asset in Texas. The Statoil-operated activities fall mainly within Live Oak, Karnes, DeWitt and Bee counties.

“This is an important milestone for Statoil’s development as an operator in the U.S.,” said senior vice president for U.S. Onshore, Torstein Hole.

“We now have operational activities in all our onshore assets, Bakken, Marcellus and Eagle Ford. Our organization in Houston is eager to further develop our Eagle Ford holding as operator and we look forward to engaging with communities and landowners in the eastern part of our joint venture acreage,” he underlined.

Statoil entered into the Eagle Ford shale in 2010, through a 50/50 joint venture with Talisman Energy USA Inc. Talisman initially acted as operator for the jointly owned acreage, under an agreement where Statoil was to attain operatorship for half the acreage at a later stage.

Last year, the companies agreed that Statoil, through a phased transition, would take responsibility for operations in the eastern half of the asset.

This acreage falls mainly within Live Oak, Karnes, DeWitt and Bee counties. Talisman will continue with operational responsibility for the western acreage, which is principally in McMullen, La Salle and Dimmit counties. The joint ownership for the total acreage is not impacted by the splitting of operational responsibilities.

Statoil has already taken over operations on three drilling rigs in the Eagle Ford. From July 1 the company has also assumed responsibility for producing wells, processing facilities, pipelines and infrastructure, and a field office in Runge, Karnes County.

Statoil Takes Helm at Eagle Ford Asset

“Both companies have been committed to executing the transition in a safe and responsible manner, whilst ensuring maximum value creation in the joint venture. We are also committed to continue the relationship and further develop strong ties with our host communities,” said Torstein Hole.

Statoil holds approximately 73,000 net acres in the Eagle Ford. Production stands at 20,200 barrels of oil equivalents per day (boepd) (Statoil share) from around 300 producing wells.

Statoil has been active in U.S. shale plays since 2008. Besides its activity in the Eagle Ford, Statoil holds significant positions in the Marcellus and the Bakken plays. Production from these positions is a strong contributor to Statoil’s North American growth strategy, where the ambition is to produce more than 500,000 boepd in 2020. Statoil’s global ambition is to produce 2.5 million boepd in 2020.

In North America, Statoil is established with U.S. offices in Houston and Austin, Texas; Stamford, Connecticut; Anchorage, Alaska; Williston, North Dakota and Washington DC and Canadian offices in Calgary, Alberta and St. Johns, Newfoundland and Labrador.

The company also owns and operates the South Riding Point crude oil terminal in the Bahamas and has a representative office in Mexico City, Mexico.

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Announcing Our Giveaway Prize

Posted in Gas Industry with tags , , on September 26, 2012 by amandarandjtech

Come and see us at the Bakken Oil Show in Williston North Dakota October 10th and 11th and enter to win!

A Benellie 12 gauge Nova Pump Shotgun with Realtree Max-4 finish.

R & J will be giving away this shotgun worth $500 to a lucky visitor to our booth at the Bakken Oil Show in Williston North Dakota

Fears Confirmed that Isaac Stirred Up Macondo Oil

Posted in Gas Industry, Oil Drilling with tags , , , on September 7, 2012 by amandarandjtech
by  Jon Mainwaring
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Rigzone Staff

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Thursday, September 06, 2012

Original article found here

Fears Confirmed that Isaac Stirred Up Macondo Oil

Fears that Hurricane Isaac might have stirred up crude oil left over in the Gulf of Mexico after the Deepwater Horizon accident more than two years ago have been confirmed by BP after officials closed a 13-mile stretch of beach Tuesday due to tar balls and oil being reported.

According to the Associated Press, a BP spokesman said late Wednesday that the company was working with the Coast Guard, state officials and land managers to clean up oil on the Fourchon beach on the Louisiana coast and that clean-up crews would be there Thursday.

On Tuesday the Louisiana Department of Wildlife and Fisheries Secretary announced the emergency closure of a portion of coastal waters due the emergence of a large tar mat and concentrations of tar balls on beaches in the area. The LDWF banned all commercial fishing in these waters.

BP still has hundreds of workers operating on the Gulf Coast cleaning up oil that was leaked into the GOM from the Macondo prospect, where Deepwater Horizon was drilling.

The BP spokesman added that the storm had served a good purpose since it had made visible where the company can clean up.

Last week the Huffington Post reported that Garret Graves, chairman of Louisiana’s Coastal Protection and Restoration Authority, had warned up to one million barrels of oil is estimated to remain in the GOM because BP had failed to clean it all up.

In a statement sent to Rigzone on Thursday at noon (UK time) BP said:

“As anticipated prior to Hurricane Isaac making landfall, there are reports of residual Macondo oil along the shorelines near Fouchon Beach and Grand Isle. These are areas that were in active response prior to Isaac, so it was expected by the Gulf Coast Incident Management Team – which includes the United States Coast Guard, state representatives, other federal representatives, and BP – that these could be areas where highly weathered residual oil might be exposed.

“In accordance with the GCIMT’s Severe Weather Contingency Plan, with the arrival of Hurricane Isaac operations were suspended across the response area.  As areas are opened by the FOSC and appropriate safety assessments have been completed, we are redeploying crews to these areas to resume response operations.

“Under the direction of the Coast Guard and in accordance with the Gulf Coast Incident Management Team sampling protocols, we also anticipate testing this material to determine its origin.

“It is important to note, however, that there have been 90 reports of oil releases from other sources since the storm, and it is imperative that the parties responsible for that oil act in the same manner as BP and respond quickly in following Coast Guard directions.”

Fears Confirmed that Isaac Stirred Up Macondo Oil

A former engineer, Jon is an award-winning editor who has covered the technology, engineering and energy sectors since the mid-1990s. Email Jon at jmainwaring@rigzone.com.

National Oilwell to Acquire Robbins & Myers for $2.5B

Posted in Electricians, Gas Industry with tags , , , , on August 10, 2012 by amandarandjtech
by  Karen Boman

Rigzone Staff

Thursday, August 09, 2012

Original article found here

Houston-based oilfield service company National Oilwell Varco Inc. (NOV) will acquire Robbins & Myers in an all-cash transaction valued at approximately $2.5 billion, NOV said Thursday.

The combination of NOV and Robbins & Myers’ manufacturing infrastructure and portfolios of technology will allow NOV to further advance its presence in the oil and gas markets it services, NOV Chairman, President and CEO Pete Miller said in a statement on Thursday.

“Robbins & Myers has many complementary products with those National Oilwell Varco currently offers the industry,” Miller said. “I am particularly enthusiastic about the prospect of incorporating their downhole tools, pumps and valves into National Oilwell Varco Petroleum Services & Supplies and Distribution & Transmission segments.”

The transaction will allow Willis, Texas-based Robbins & Myers “to join forces with an industry leader that will enable its business segments to fully capitalize on their respective strategies, enhance leadership positions in niche applications, and execute growth plans at a faster pace,” said Pete Wallace, president and chief executive officer of Robbins & Myers, in a statement Thursday.

The agreement calls for Robbins & Myers’ shareholders to receive $60/share in cash in return for each of the approximately 42.4 million shares outstanding. The acquisition is expected to close in the fourth quarter of calendar year 2012.

The deal is the latest in a series of acquisitions made by NOV this year as the company seeks to expand its product offering and customer base.

In April of this year, NOV announced an agreement to acquire Schlumberger Limited’s Wilson distribution business segment. NOV completed that acquisition in May.

NOV also unveiled plans to acquire CE Franklin, a Canadian supplier of products and services to the energy industry, for CAD$240 million. Schlumberger was the largest shareholder of CE Franklin.

In February, Subsea 7 and NKT Holding agreed to sell their NKT Flexibles joint venture to NOV for $672 million.

GHS Research sees NOV’s acquisition of Robbins & Myers as positive for both parties, with Robbins & Myers shareholders getting a respectable takeout price in an all-cash deal, GHS analyst Brian Uhlmer said in a research note Thursday.

The agreement for $60/share is a 28 percent premium to Robbins & Myers closing price on Aug. 8 and an approximately 12 percent premium to its 52-week high.

NOV will get the Robbins & Myers business for less than nine times earnings before interest, taxes, depreciation and amortization, but likely even less as it shaves $50 million to $75 million out of the cost structure.

Karen Boman has more than 10 years of experience covering the upstream oil and gas sector. Email Karen at kboman@rigzone.com.

USA Drilling Rig Report

Posted in Gas Industry, Oil Drilling with tags , on June 8, 2012 by amandarandjtech

Please see site for updated detail list of rigs

As of May 25, 2012, there are 1,983 rigs in the USA, a change of 136 added since this time last year.  Please visit the link above for a detailed listing of these rigs.  We’re very excited to be a part of such a strong and constantly growing industry.

Williston in the News

Posted in Gas Industry, Oil Drilling with tags , , , , on June 1, 2012 by amandarandjtech

Williston has made the news yet again!  To check out the recent local Utah news story, follow the link below. 

  http://www.kutv.com/news/top-stories/stories/vid_598.shtml

Can the U.S. Be Energy Independent?

Posted in Gas Industry, Oil Drilling with tags , , , on May 11, 2012 by amandarandjtech
by  Karen Boman
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Rigzone Staff

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Monday, May 07, 2012

 

As the United States finds itself with abundant natural gas supply and growing domestic oil production, the phrase ‘energy independence’ has become the new buzzword of politicians and oil and gas industry officials.

According to a recent Raymond James report, the United States could achieve energy independence by the end of the decade, Dow Jones reported in early April.

But can the United States truly become energy independent?

In the short to medium term outlook for oil, the United States effectively has no chance of becoming energy independent, said Dr. Michael Noel, senior vice president of Edgeworth Economics.

“Right now, we import so much oil because it’s cheaper to do so,” Noel said. “To forego a cheaper source of oil and replace it with a necessarily more expensive source generally does not make economic sense.”

The argument for energy independence implies that the Unites States should always pay a premium on energy to avoid Middle East oil instead of just a premium when price shocks coming from the Middle East cause price spikes in the United States.

“It’s an expensive insurance policy and that’s why we still use Middle East oil,” Dr. Noel commented, adding that, as long as the United States uses oil to a certain degree, the United States will always be subject to global oil shocks.

Currently, 20 percent of oil imported by the United States comes from the Middle East and 40 percent from OPEC member countries. Canadian oil comprises 20 percent of U.S. imports and is expected to keep growing. Ten percent of U.S. oil imports come from Mexico; the amount of oil imported continues to fall.

Even if the United States imported all of its oil from friendly countries such as Canada, a supply cut in the Middle East would mean customers in this region would need to source oil from somewhere else, bidding up the price of oil and drawing supply from Canada and other friendly countries. As a result, U.S. customers would be impacted with higher prices.

“The domestic price of oil will reflect the world price of oil, so thinking that more domestic drilling will bring domestic oil prices down is a bit naïve,” said John Z. Wetmore, producer for “Perils for Pedestrians” Television, a television series that examines the issues affecting people who walk.

Additionally, the faster the United States pumps its domestic reserves out of the ground, the sooner it will exhaust them and be even more dependent on foreign supplies, Wetmore commented in a statement.

Assertions by some politicians that U.S. energy independence means the U.S. will not have to send its troops over to the Middle East are not accurate, given the United States support of Israel.

“There is still going to be some involvement, given that a number of Muslim countries don’t like its existence,” Noel said.

“Energy independence doesn’t mean we’ll abandon our friends and allies around the world,” said Mike Amman, a Florida-based business finance and technology consultant. “Isolationism isn’t the answer, we’re joined at the hip (or at the wellhead) to the rest of the world, like it or not.”

The outlook is not good for cheap gasoline, given worldwide demand for oil. Wetmore noted that China is now a larger automobile market than the United States and India.

Other countries are trying hard to catch up with United States’ driving habits, Wetmore commented.

“Four dollars will look cheap when the world economy recovers,” said Wetmore. “It would all be more tolerable if we designed our cities and towns with more transportation choices, so we didn’t have to burn gasoline every time we made any trip for any purpose.”

Chris Nelder, an energy expert who has written numerous articles in the topic of Peak Oil, said that existing data doesn’t support the idea of the United States being energy independent.

Nelder questions whether production forecasts for unconventional oil plays such as the Bakken are feasible, and notes that Mexico’s production has been in long term decline.

While tight oil wells have huge initial production rates, they decline sharply in six months times. Tight oil production will also not work with lower oil prices.

“To be energy independent, we would have to produce about 9 million barrels of oil per day (bopd) from wells that give you 100 bopd,” Nelder noted, adding that oil prices need to stay above at least $85 per barrel to sustain production.

However, higher oil prices have also bolstered gasoline prices, and as U.S. consumers struggle with $4/gallon prices, they start to drive less, which kills demand. Oil production needs to remain on a narrow ledge to keep production flowing, and the incredible price swings to above $100 and below $85 impact supply.

“In that narrow band, do we really think it’s possible that for another decade we can drill thousands and thousands of wells?” said Nelder.

To keep output flat, the U.S. would have to draw down its oil resources more quickly, Nelder commented.. By 2030 and 2040, over two-thirds of the world’s oil fields will be in terminal decline. At that time, the United States will face difficulties in importing oil from anywhere.

“From that point, we’re going to need our domestic resources,” said Nelder. “We could actually be shooting ourselves by trying to achieve energy independence.”

Promise of Natural Gas?

The United States already is energy independent in natural gas, said ConocoPhillips Chairman and CEO James Mulva at a recent conference.

Energy industry leaders such as T. Boone Pickens and Robert Hefner are calling for greater use of natural gas in the United States in transportation.

Nelder thinks that T. Boone Picken’s plan to convert fleet vehicles to run on compressed natural gas makes a lot of sense, but worries that the deluge of natural gas that as resulted from the shale gas rush means that no companies can make money on natural gas.

The land rush mentality that ensued since late 2010 resulted in companies buying up a number of properties and drilling. A lot of gas is being flared, and plans have been proposed to convert liquefied natural gas import terminals constructed in the United States into export terminals.

Nelder said he thinks that the United States shouldn’t get crazy about exporting LNG until the United States really knows what it has in terms of supply, noting that the 100 years of natural gas supply in the United States hasn’t been proven and is highly speculative.

The United States already uses gas that is the equivalent of 11 million barrels of oil per day and faces the serious risk of finding itself faced with very expensive gas if gas use increases and LNG is exported.

A number of shale gas producers such as Chesapeake Energy have taken on a lot debt to acquire shale gas properties, thinking they can flip the leases. But these companies face the real possibility of going bankrupt when buyers start to question whether the can profitably produce gas, Nelder noted.

 

Original article found here