Initially, compressed natural gas (CNG) fueling capability will be available at two Stripes locations in the Midland, Texas area.
Steve DeSutter, Stripes President and CEO – Retail, said, “Adding natural gas to our conventional motor fuel products reinforces our mission to give Stripes customers what they want at a great price in our convenient store locations.
“We certainly see the role of natural gas in our energy future, and we are looking forward to participating as it evolves as a viable alternative transportation fuel. We plan to evaluate the results of our pilot project in West Texas, and if it is successful, we expect to gradually roll out CNG fueling capabilities in other Stripes markets,” DeSutter said.
Steve Farris, Apache’s Chairman and Chief Executive Officer, said: “Natural gas discovered and produced in the United States is a smart alternative to conventional fuels. It’s cheaper, cleaner, and abundant.
“We use it for our fleet cars and trucks with great results, lowering operating costs and reducing our environmental footprint. Partnering with Stripes provides our fleet and other CNG users with a more convenient fueling experience as well as access to their stores and other amenities.”
Today compressed natural gas is priced 30% to 40% lower than gasoline or diesel on a gallonequivalent basis, which means a big savings at the pump. According to industry experts, natural gas is kinder to the environment by reducing vehicle exhaust emissions, and because of our nation’s abundant natural gas reserves, it represents a more secure American energy supply. According to the Department of Energy Clean Cities Alternative Fuel Pricing Report and the Institute of Energy Research, known domestic resources could satisfy the nation’s needs for more than 100 years.
This is a picture of the Santa Rita in the early 1920’s.
In 1883, the year UT was opened, an endowment was established by the state of Texas that donated 2.1 million acres in West Texas to help UT. Not much was expected of the desolate land besides to perhaps develop it for real estate. In the 1920’s curious men acquired drilling permits from UT, hoping to strike it rich. There were in fact huge oil discoveries. Oil from the Permian Basin has generously provided for the UT system. The PUF continues to receive royalties from oil and gas production in West Texas while the AUF, Available University Fund, continues to receive all surface lease income. Surface lease usually entails “grazing and easements for power lines and pipelines.”1
Big Lake Oilfield and Santa Rita #1 Oil Well
In 1919, Rupert P. Ricker started advertising the land given to UT for oil exploration. The UT alum had utilized a law passed two years earlier permitting state land to be chartered for oil exploration. Having trouble making the sale of 431,360 acres, Ricker turned to an army buddy, Frank T. Pickrell. The original price of the permits for the land and other processing fees was approximately $41,136; however Pickrell paid only $2,500 due to the approaching thirty day deadline for Ricker to make the sale. In 1921, Pickrell started making his runs desperately searching for Texas Tea.
Much to his delight, the Santa Rita #1 oil well produced oil on the final day before the permit expired. A group of Catholic women had large investments in the exploration; when they heard all of this, they wanted it called Santa Rita (“Patron of the Impossible”). But on May 25, 1923, Cromwell, with fellow worker Dee Locklin, decided to “shut down the well to keep reports tight while they leased surrounding acreage for themselves.”2
The oil well was a part of the Big Lake Oilfield. By 1926, the oilfield had already contributed $4 million to the PUF. In the beginning, the single oil well was producing around 3,000 barrels of oil daily. Different wells in the field also had success early on; “the No. 9 well’s initial daily production was 1,400 barrels, on June 24, 1924. The No. 10 came in with 1,840 barrels on July 11. But the No. 11, which began producing 3,600 barrels daily on July 31, proved the field’s productivity.”1
The Santa Rita had served its purpose to the UT system in its sixty-seven years. In 1990, the plug was pulled. The Texas State Historical Association had the original Santa Rita #1 rig moved to the UT campus, and it can be seen next to MLK Blvd between Trinity and San Jacinto streets.
is one of the richest oil fields in the United States; it is rated in the top ten for overall production and second for reserves. Much like the Big Lake Oilfield, permits were granted by UT, and in turn, the school received royalties from the drilling in West Texas.
According to the DrillingInfo website, Yates has over 1 billion barrels left in reserves, which is the largest amount of reserves in the entire nation with the exception of the mammoth Prudhoe Bay, Alaska. It continues to produce around 20,000 barrels of oil per day and around 85,000 MCF (thousand cubic feet) of gas daily. In 1998, it was reported that a research team named Golder Associates of Redmond, Washington was attempting to discover ways to maximize production using natural drainage systems. “Very effective gravity drainage, combined with a secondary gas-cap expansion drive is responsible for the estimated ultimate recovery of 50 percent of the original oil in place.”3 The oil field is so well maintained since it contributes so much to the University.
- Energy: Texas Tops Finds From Brazil to Bakken as Best Prospect (mb50.wordpress.com)
- Permian Basin of West Texas seeing oil boom (mb50.wordpress.com)
- Pioneer Bets On West Texas Shale Oil To Rival Bakken (mb50.wordpress.com)
- West Texas Wolfcamp Oil (nextbigfuture.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)