MIDSTREAM & MORE:
Tulsa Heaters Midstream is focused on providing useful and informative content to our customers, suppliers, and anyone else that wants to follow along. Each Wednesday, we will post links to interesting articles from around the web relating to the midstream oil and gas industry and more. Posts could include articles that talk about one or more aspects of the industry, including:
- State of oil and gas industry/pricing
- Oil and gas companies and their businesses
- Major news releases
- Gas processing plants
- Pipeline/infrastructure projects
- Many others
WEDNESDAY, JUNE 8, 2016:
The big news from the last week was the OPEC meeting in Vienna. And the big news is...nothing really happened. OPEC didn't come out with any noteworthy announcements, and several articles have called it a "love fest". With all of the bankruptcies in the U.S. over the last few years, and the current recovery in price due to the reduced supply overhang, OPEC members are declaring they have met their earlier objectives of securing market share.
While oil markets will start rebalancing after a slump next year, an oversupply in natural gas won’t disappear until the end of the decade, the International Energy Agency said, slashing its gas demand outlook for a fourth straight year. But that doesn't mean that the U.S. (and others) are going to stop growing their natural gas supplies. In the U.S., almost all of the production growth is expected to come from shale gas and tight oil plays, according to the EIA.
Some of the gas production growth will go towards new projects, such as Shell's new ethylene plant in Pennsylvania. This has been discussed for several years, but has now received the final green light by Shell.
Over the last several years, and in the coming years, much of the gas production has gone towards the building or retro-fitting of power plants. In a recent report by the EIA, the cost of producing power with natural gas is approximately half the cost for power from wind, and about 25% of the cost of power from solar.
Let's end on a good note this week. A recent article from Forbes showcases some of the pure play companies in the Permian basin that are out-performing the market because of their asset locations. Companies like Parsley Energy that have continued to grow and show good ROI on production are leading the way.
That's it for this week. If you missed our newest heater resource that was announced last week, make sure to check it out here:
Tune in next week (same bat time, same bat channel) to see what else we have dug up from across the web.
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Legal note: The views expressed in the linked content does not reflect the views of THM or its employees.