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Corpus Christi, TX: Apache to Add CNG Gas Fuelling Dispensers at Midland Stripes Stores

Stripes LLC, a subsidiary of Susser Holdings Corporation announced it is partnering with Apache Corporation to add natural gas fueling dispensers at selected Stripes® convenience store locations.

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.

Apache to Add Gas Fuelling Dispensers at Stripes Stores, USA LNG World News.

University of Texas Oil Connections


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.

Yates Oil Field

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.



Bexar facility is ‘big deal for us’


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-News
By 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.image

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.


Crimp in Keystone XL plans may help Houston’s Enterprise


by Loren Steffy
Posted on November 14, 2011 at 6:37 am

The Keystone XL pipeline may be the first shovel-ready project buried by foot-dragging.

While the Obama administration allows the proposed pipeline, which would move oil from Canada’s oil sands region in northern Alberta to Gulf Coast refineries, to languish, market demands will ensure the oil is transported south by other routes. By the time Keystone gets the green light from the State Department, there may be no demand for it.

Last week, the administration said it would consider alternative routes for the Keystone project to avoid environmentally sensitive areas. It’s a political non-decision that avoids angering key Democratic constituents before next year’s presidential election. Approving the pipeline would have angered environmentalists; rejecting it would have angered labor unions.

Keystone’s stagnation, though, is good news for Houston-based Enterprise Product Partners, which has teamed with Canada’s Enbridge to build its own Alberta-to-the-Gulf network.

Enbridge already has lines to move oil from Alberta to Chicago – avoiding the need for State Department approval – and from there to Cushing, Okla.


Enterprise’s proposed Wrangler line would transport the oil from Cushing to the Houston area.

“Wrangler becomes the only game in town if Keystone’s going to be pushed back a year,” said Jeff Dietert, an analyst with Houston-based Simmons & Company International. “Producers and shippers are going to be interested in moving crude sooner than that.”

Pipelines don’t compete the same way that, say, retailers do. Demand is measured by long-term commitments for oil and other products. But Enterprise CEO Mike Creel acknowledged that with Keystone on hold, more people may see Wrangler as the best option for moving oil to the Gulf.

“We’ve had a very good reception so far,” he said. “We’ve got the right support from producers and shippers.”

As I wrote this summer, increased oil production from Canada and shale formations in places like North Dakota have resulted in a glut of oil at the pipeline hub in Cushing. That oversupply is keeping prices on West Texas Intermediate crude lower than the world price, which is what most refiners are paying.

The question is how much additional pipeline capacity is needed to bring prices into balance, which would, in theory, result in lower gasoline prices at the pump.

“There’s been a lot of debate about how much really needs to be built,” said John Cusick, an analyst with Wunderlich Securities in New York. “You just hear so much about all of the crude that’s stranded in Cushing.”

In addition to the Wrangler project, other companies are considering ways to get more oil to the Gulf. Houston-based ConocoPhillips, for example, has put its share of the Seaway pipeline up for sale. Currently, the line moves oil from the Gulf Coast inland to supply ConocoPhillips’ Midwestern refineries.

But with the sale – Enterprise owns the remaining interest in the line – the new owners may decide to reverse the flow.

As other companies move in, last week’s delay leaves Keystone’s future far more uncertain than either the administration or the company behind the project, TransCanada, are willing to admit.

“We remain confident Keystone XL will ultimately be approved,” TransCanada’s chief executive, Russ Girling, said in a statement. “This project is too important to the U.S. economy, the Canadian economy and the national interest of the United States for it not to proceed.”

But it’s not likely Keystone will seem as important a year from now, or that TransCanada or its customers will stick with the project through the latest delay.

With Keystone buried in uncertainty, Enterprise and Enbridge have gained the upper hand.

Source – Fuel Fix

Washington Declares War on Texas!

4/26/2011, 10:31 pm


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.

Original Article

W&T taps into Permian liquids


Steve Marshall  26 April 2011 11:38 GMT

W&T Offshore has struck a $366 million deal to acquire acreage in the Permian basin of west Texas to help the Gulf of Mexico-focused player revive lagging liquids production from its mature asset portfolio.

The company, which saw its net income more than halved in the first quarter, has been looking to make fresh acquisitions after stating last month that most of its producing properties had reached saturation point, hitting its share price.

Its production profile has been further dented by a third-party pipeline outage at its key Main Pass 108 field in the Gulf of Mexico, which only came back online at the end of the last quarter having been shut in since June 2010.

The latest acquisition from private sellers will give W&T about 21,500 net acres with estimated proven reserves of 27 million barrels of oil equivalent – 91% of which is oil and natural gas liquids.

The properties are currently producing at 2800 barrels of oil equivalent per day, and W&T expects ongoing drilling activities to deliver further output increases this year.

Analysts had earlier reacted negatively to W&T’s acquisition of some of Shell’s assets in November, which had comprised mainly gas while most companies were switiching to liquids-rich plays. This had given the company few drilling opportunities to lift output, they said.

Oil prices have soared beyond $110 a barrel while NGLs, which can be stripped of components such as ethane, sell at a premium to dry gas.

W&T said the Permian basin purchase has “significant upside potential… with hundreds of proved undeveloped and probable well locations”.

The company raised its production forecast for 2011 on the back of the deal to 87 billion to 101.1 billion cubic feet equivalent, up from the previous prognosis of 83.2 to 96.7 Bcfe.

The company is targeting capital expenditure of $35 million to $40 million this year on development work on the newly acquired acreage. Closure of the acquisition is expected in the second quarter.

“We believe that there are many more attractive acquisition opportunities for us both onshore and offshore,” said chief executive Tracy Krohn.

The company saw its net income including special items fall in the first quarter to $18.6 million, or $0.25 per common share, down from $42.3 million, or $0.57 per common share, a year ago. Revenues, however, were up 24% year-on-year at $210.9 million.

The weaker quarterly result was attributed by W&T to to a derivative loss of $23.8 million in the first quarter as well as a higher effective tax rate on profits.

Krohn said higher production volumes as a result of deep-water asset acquisitions from Shell and Total, as well as high oil prices, helped to offset the net income decline.

Total sales volume increased 14% to 22.7 Bcfe from 20 Bcfe in the first quarter of 2010.

“Our oil and natural gas liquids production, which represented 48% of our total production on a thousand cubic feet equivalent basis in the quarter, continues to contribute substantially to our revenues in this higher price environment,” Krohn said.

The Main Pass 108 field is currently producing 46 million cubic feet equivalent per day of gas after coming back online, with the company expecting output to rise by another 8 to 10 MMcfe when the Main Pass 108 E-3 well starts producing.

Shares in W&T on the New York Stock Exchange were up 81 cents to $23.57 after the Permian basin deal was announced.

Original Article

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