Plans call for development to begin in 2013. Each plant will produce between 7,500 to 40,000 Diesel Gallons Equivalent (DGE) per day of capacity, subject to current and future contractual commitments. According to Joseph Farley, Director of Business Development, “We see a need for LNG and CNG as another important supply fuel to the Oil & Gas industry and service providers. Producers and Suppliers of Oil & Gas are looking for ways to cut their fuel cost and by switching to Natural Gas for their rigs, frac units and fleets they can save millions of dollars each year.
“AmericaCNG.Com,Inc along with their Strategic Alliance Partners(SAP) can convert the trucks, the frac units and the drilling rigs to run off CNG. Thigpen Energy, one of our SAP, is a field service company that specializes in the installation and operation of natural gas fueling infrastructure, be it CNG, LNG or field gas.
“Gas safety equipment, crew safety training and fuel reconciliation are all part of the Thigpen Energy solution. By utilizing our LNG processing, storage and transportation capabilities we will be able to wholesale the fuel, plus transport the fuel to each well site, regasify it back to CNG, and sell it to drillers, suppliers, service companies and converted vehicles…”
“We have the capability to turn around a project in about 180 days for the smaller units out in the field.”
Another SAP is Alternative Gas Processing Inc.. They supply wellhead gas processing equipment for methane and NGL’s, portable LNG fuel skids, and LNG and CNG transportation modules. Methane and NGL recovery at the well head can be accomplished with no out of pocket expense to the producer in specific targeted areas.
The U.S. Energy Information Administration (EIA) said in a report that the U.S. dry natural gas production has increased since late 2005 due mainly to rapid growth in production from shale gas resources. However, there have been two notable instances (see red ovals in the chart) in the last seven years when natural gas production leveled off during a period of falling spot natural gas prices.
The first was during the recent economic recession and the latest began in the fourth quarter of 2011 and continued through the first quarter of 2012.
Weather events (see green ovals) have also affected U.S. natural gas production.
The major events over the past seven years that have caused dry gas output to level off or even decline include:
- Hurricanes Katrina and Rita (Sep-Oct 2005) – Disrupted up to 12.2 billion cubic feet per day (Bcf/d) in offshore natural gas production.
- Hurricanes Gustav and Ike (Sep 2008) – Disrupted up to 9.5 Bcf/d in offshore natural gas production.
- Economic recession and falling prices (Oct 2008- Sep 2009) – Reduced industrial and manufacturing activity, and lower electricity use eased demand for natural gas as a feedstock and a power generation fuel. Natural gas prices fell sharply as a result.
- Winter well freeze-offs (Feb 2011) – Disrupted up to 7.5 Bcf/d in natural gas production from Texas to Arizona, when water froze inside wellheads during extremely cold weather and blocked gas flows.
- Supply overhang and falling natural gas prices (Oct 2011-Mar 2012) - A warm winter that reduced heating fuel demand and record high gas inventories resulted in a nearly 50% drop in gas prices, causing some energy companies to postpone new drilling and cut back on some existing operations.
Natural gas production was relatively flat between October 2011 and March 2012, when Henry Hub spot gas prices declined from just above $3.50 to around $2.00 per million British thermal units in March. Preliminary EIA data indicate a slight drop in production during March, according to the Natural Gas Monthly report released on May 31.
Of the five large gas-producing states tracked monthly by EIA—Texas, Louisiana, New Mexico, Oklahoma, and Wyoming—New Mexico had the highest percentage decline in its March gross natural gas production, down 2.2 percent from the previous month, while Texas had the largest volumetric drop, down 150 million cubic feet per day. States that EIA does not presently track on a monthly basis, such as Pennsylvania, may have seen their gas output increase during March.
- EIA: U.S. Surpassed Russia in Dry Gas Production in 2009 and 2010 (mb50.wordpress.com)
- Natural gas boosted by short covering (business.financialpost.com)
- Natural gas: What are the bulls thinking? (business.financialpost.com)
Robert Drummond, president of Schlumberger North America, (left) talks about his company as Jeremy Aumaugher, south division operations manager, listens to questions about expansion of their business to support clients in the Eagle Ford Shale.
Photo: TOM REEL, San Antonio Express-News / San Antonio Express-NewsBy Vicki Vaughan Updated 12:26 p.m., Thursday, March 8, 2012
Schlumberger, the world’s largest oil-field services company, threw open the doors Wednesday to its new operations plant in southern Bexar County, where it was drawn by proximity to the Eagle Ford Shale.
“This is a big deal for us,” Robert Drummond, president of Schlumberger North America, said as he stood before shiny trucks in a spic-and-span warehouse that’s part of a $19 million investment.
The new facility is a critical addition to Schlumberger’s south division operations, which encompasses the New Mexico, West Texas and South Texas, he said.
Construction of the company facilities, which occupy three sites on Fischer Road near the intersection of Interstate 35 South and Loop 410, began in December 2010, company officials said.
Schlumberger — which is based in Houston, Paris and The Hague, Netherlands — employs almost 400 in the San Antonio area, a total that is likely to grow to 500 employees in the coming months, officials said.
San Antonio’s nearness to the shale has meant that the company hasn’t had a problem recruiting employees, whose work ethic “is excellent,” Drummond said.
The South Bexar facility employs managers, engineers, health and safety employees, equipment operators, maintenance and electronic technicians, and laboratory workers.
Salaries at the operations center range from $25,000 to $85,000 a year, said Jeremy Aumaugher, south division operations manager for pressure pumping. Employees also are eligible for performance bonuses, he said.
However, some employees may work 60 hours a week or more and be away from home for periods of time, Aumaugher said.
The company’s biggest labor needs are for truck drivers, while mechanics and electronic technicians make up another key category, he said.
“We’re in competition, obviously, with others who do the same work as us,” Drummond said. “We want to be the employer of choice in North America, meaning not only (in) compensation but work conditions, facilities and safety environment.”
Schlumberger’s center will handle its customers’ demands for pressure pumping, which is used to enhance the flow of oil and natural gas in hydraulic fracturing. It also will provide cementing services, a process used to surround a well’s casing, or pipe.
Schlumberger’s operations occupy 60 acres. One facility occupies a 35-acre site that includes bays for maintaining, fueling and washing trucks. There’s a 15-acre bulk plant capable of storing 20 million pounds of sand for use in hydraulic fracturing, a cement blending area, a 39,028-square-foot warehouse, a laboratory and a support and training facility on 10 acres.
At a ceremony Wednesday at Schlumberger, Economic Development Foundation Chairman Henry Cisneros said: “This is a great, global company doing important work. The more you can succeed here, it is ‘mission accomplished’ for us.”
As drilling in the Eagle Ford Shale has exploded, a number of oil-field services companies have established a presence in the region, including Houston-based Halliburton Co. and Baker Hughes Inc., Switzerland-based Weatherford International Inc. and Canada-based Sanjel.
In addition, a number of oil production companies drilling in the Eagle Ford Shale have opened offices in San Antonio.
- Eagle Ford construction is booming – San Antonio Express-News (wpvins.wordpress.com)
It is time for great rejoicing. Washington has at last declared war on Texas. It is not a war of guns but of regulations, which is war by other means.
Some Esteemed Comrades may not realize that I live in Texas. There. I feel better. I came out. This Bruno bit is nothing, but I’ve been hiding my red soul under a potato basket from some of the people here at the Karl Marx Reeducation Center.
Our glorious environmental friends have discovered the sand hills lizard, which is 3” of sheer bliss. It is thought to exist in about five West Texas counties and three New Mexico ones, and being a lizard, it is more important than any of the citizens there, or the economies of Texas and New Mexico. Which is as it should be. Ten million acres and billions of wealth held hostage to a lizard. Wipe your eyes, comrades: it gets better. Better yet, get a fresh cup of borscht, and yes, it’s worth the splurge.
We are in the process of holding meetings to see if the lizard is endangered. I am confident that it will be found to be endangered: it has no use whatsoever; everyone has seen thousands of them; and so they are perfect. Their complete and total unimportance is the perfect excuse for war.
If we are lucky in our hearings, the lizard will be considered an endangered species, and that will occasion a two-year study on the impact of, well, work and living, in West Texas and New Mexico. For two years there will no farming or ranching. That’s one excellent way to make people quit eating the beef that they like: let the cattle starve in a pen for the rancher can’t buy food for them, or have a forced sale at giveaway prices. This is sure to ruin the rancher.
Ranchers and farmers are being cursed by Gaia now, in the worst drought in fifty years. That’s why we have these wildfires. Many ranchers and farmers have taken mortgages on their land, often underwritten by the government, that they will not be able to repay. Often the government, very wisely in my view, let them borrow much more money than the collateral would bear. It’s not about being a prudent lender. It’s about taking OPM by force and lending it under circumstances which can succeed only if nothing goes wrong.
Fortunately for us, things always go wrong, and if they don’t, we’ll see to it. Misery for all, all for misery! When the land is foreclosed, it will be worth virtually nothing because of the prohibition on ranching and farming. Not only will the government have managed to waste the money it lent, it will acquire property whose value it destroyed. This is brilliant collectivization. The counties’ tax bases will be corrupted, as the property will be exempt from taxation, and since the other property values will plummet, see below, this will further harm the local governments’ abilities to extract as much money as possible under circumstances as unpleasant as possible while they still stay in office. By whatever means. No tapeworm ever feels overpaid or unwelcome.
The laying of pipelines across the property will be banned. Any hydrocarbons will have to detour around the lizard’s putative range. This will add to the cost of gasoline, which is just what President Obama wants. If the winter is cold in the northeast, gas might be scarce, and there is little need for those gas-fired power plants when we can have wind turbines which turn when it is still, and they will after the CBO decrees it after we wave our Prog Wizard’s wand. You know, the one that Paul Krugman sells on late-night infomercials.
There will be no seismic work to prospect for minerals. It might hurt the lizard. But this is fine because all drilling operations shall be curtailed. Two of the Texas counties alone provide 20% of the oil and gas that Texas produces. I wish it were more, to hurt people more. There. I’ll come out again. I’m a made prog and I love to hurt people. That’s why I’m a made prog. Oh, that and self-righteousness and unlimited self-entitlement. That’s why I’m Father Prog Theocritus. If I weren’t I, I’d shoot me.
The value of the mineral owners will be destroyed. And most of them are just people who inherited them. Blameless people. They have to go. Seize their wealth—for they’re oil barons.
The economies of those counties will be destroyed, forcing house foreclosures and vehicle repossessions. Property values of houses will go into free-fall. I have seen houses sell for half the mortgage, and that was in times which will seem good to the ones we can have here. There will be no takers of the foreclosed homes. The lender will sue the borrowers for a deficiency judgment, which they will have to declare bankruptcy to avoid, and this is wonderful because they’re sued and it’s not their fault. They were making payments before they lost their jobs. The jobs they sedulously went to in a vital industry, but then again: working people, vital industry. What is that compared to a lizard and my self-righteousness? See how good it is? It’s like shocking the dog at random times. Soon the dog gives up and doesn’t even try to avoid the shocks. But these are bitter-clingers and so must be made to pay as Lord Obama flies overhead on another vacation. Perhaps he can arrange for the sewage of Air Force One to fall onto a Texas county. How lucky the county would be. And a presidential turd! Be still my beating heart. To think that he shit on us in fly-over country while his government was ruining the bitter clingers who are making money and not consuming it. Yet. It is pure manna from heaven.
More work for attorneys, our party’s biggest contributors. At times I think that maggots could go to law school and learn things.
The roughnecks working on the rigs will be fired. They’ve just bought new pickups to replace the old ones that they had, since the chance of employment, and overtime, and Sunday work, was so high. Also roughnecks tend to live life immediately. They often spend money when they get it, not knowing where they’ll go. Not only will this get them, but then the people who put money away will be destroyed by the inflation coming from the printing presses. See? We’ve got it all. Destroying the impetuous and destroying the prudent. The only safe existence will be, are you ready? Working for government, which is of course all that matters. Government = slavery in the Perfect Prog World. All for the Democrat Party, nothing outside the Democrat party. With this logic alone you can plan re-education camps.
These pathetic red-staters will not be able to service that debt and the pickups will be repossessed. This will cause a glut of pickups on the Texas market, causing even Government Motors to have to cut back on production, although I must say that in the last year I have been seeing more Ford pickups. I don’t know why these roughnecks prefer the only auto company that didn’t take money from them by force. That’s reasonable and oriented toward their survival, meaning that of course it’s wrong. De facto wrong, but de jure right. After all, isn’t the First Church of Gaia all about de jure right? How else could we make people do things that make no sense whatsoever? De facto? It is to laugh. De jure? Bend over, baby, and get used to it. You’ll have a Ford F-250 there next. That’s the only way you can keep it. De jure right = de facto might.
I do worry though about those roughnecks who love guns. I don’t know why: the Second Amendment is obviously misread, and ought to read that the citizenry must be unarmed at all times, and only the government militia can have arms. The Bureau of Land Management has taken to wearing side arms. [ This is true. ]
The bitter-clingers must be disarmed before anyone can play them the Sierra Club commercial asking terminally ill people to take out a dam as they die. Because that sort of speech is so very reasonable coming from our sort, and pardon me while I sniff, but it’s fascist when coming from anyone who is not quite our sort. Bear in mind, we don’t like guns unless they’re guns our goons are holding on evil people. For which read anyone who is responsible, works, and loves this country. Because that self-sufficiency won’t do.
And in counties where the lizard is thought to be, we can use the lack of a lizard as proof that it is endangered. On this logic we can look for penguins or lantern fish in any county in Texas and do it again. After the second time, it’s easy. Remember dear Karl’s dictum that history repeats itself the first time as tragedy, the second time as farce. We can play this Washington farce county by county until the entire state, the red state, I remind you, is immiserated and immerded. Which Texas ought to be, because it didn’t see the greatness of Lord Obama, and may his feet never touch the ground. He could even shit on us without being in Air Force One. Well, his government is trying to. Such heaven.
There we have it. The destruction of a huge chunk of the Texas and New Mexico economy. Foreclosed ranches and farms. Foreclosed houses. Repossessed vehicles. Plummeting property values. Legally acquired assets which cannot be used. Complete and total human misery for a state which did not vote for Lord Obama and which has taken the entirely mistaken view that Washington is where the Sons of the Boys from Brazil came to live. A Texas which ignored Washington as much as possible—that’s the crime of course—and was doing better for it. A low-tax and low-service state. Kill it. Take it behind the barn and kill it with an ax. Can’t let them get uppity; more Californians might want to move there, but they won’t, when the economy tanks.
Then when the government has bankrupted the agriculture and oil businesses, it can declare the lizard to be at sustainable levels. Lenin forfend that we not have an adequate supply of sand hill lizards; might need to put them in say Utah to steal the property there. The government can either keep the property or sell it, with restrictions on drilling rights, further alienating the owners of the minerals from their property. A private citizen can’t do that. But what’s with private property? This is the first step toward its elimination. Oh. The tenth step. Do I hear thousandth?
The crippling of the counties producing 20% of Texas’ oil, and the best oil counties in New Mexico and just as the oil companies had discovered the technology for producing whole new fields to lower the price of gas.
Anticipate the skyrocketing gas prices. Could we get to $8 a gallon? I surely hope so. After all, Lord Obama’s Secretary of Energy wants European gas prices, but then the entire cabinet wants European stagnation and collectivism, as a pit stop on the road to serfdom because nothing will serve until each of has has its own STASI agent.
Pardon me, comrades. This is such a heady draught that I’m squirming in my seat at the utter and complete fulfillment of the progressive fantasy: the ruination of other people’s lives under banner of saving something entirely useless. Was there ever greater power? But I get to feel good about being the meanest person in America, next to Lord Obama.
There. You have it. A lizard will bring down the most vibrant economy of all the states. A lizard will make gas prices jump. A lizard will derail the economy. A lizard will pull Texas’ teeth.
A lizard. A 3” lizard. A completely unremarkable lizard will destroy the usage of ten million acres of desert land sitting on top of oceans of oil and gas. A lizard.
All hail the lizard king! It wins over the bitter clingers every single time. As long as it has the Washington thugs in its corner.
Sorry. This is too much prog happiness. I’ll see you later after I clean up and bite the heads off kittens. Such a wonderful snack. I love deep-fried kitten heads, wrapped up in copies of the Constitution, which I then use to take care of the remains of the last batch of deep-fried kitten heads.