Kinder Morgan acquires oil and gas assets in Texas from Avad Energy
The $100m transaction encompasses around 265 wells.
Pipeline operator Kinder Morgan has acquired oil and gas assets in West Texas for approximately $100m, reported Reuters, citing people familiar with the matter.
The transaction with Avad Energy Partners encompasses around 265 wells within a mature segment of the US’ most extensive oilfield, according to Avad’s marketing materials and and people close to the matter.
The acquisition also brings Kinder Morgan 11,600 acres with the potential to scale up oil production through enhanced oil recovery techniques, which could involve carbon dioxide (CO₂) injection.
The acquisition underscores the impact of the Inflation Reduction Act’s $60 per tonne tax credit for carbon sequestration on the oil and gas industry, making older oilfields more financially viable, one of the people said.
The company’s strategic acquisition includes an oilfield with a production history dating back to the 1920s. This field currently has production of around 1,100 barrels per day (bpd).
Kinder Morgan is considering utilising the country’s carbon capture incentives to boost production from the oil and gas properties.
Kinder Morgan’s existing oil production operation, which produces around 50,000bpd, employs CO₂ injection to enhance oil recovery. This makes the field more economic due to the new tax credit in the US.
In line with the new focus on higher-potential properties, Kinder Morgan is reportedly planning to divest several older conventional oilfields in the region.
One of the people said: “This is showing KMI is staying in exploration and production (E&P) business.”
Estimates suggest that an additional 100m–300m barrels of oil could be extracted from the field over time using enhanced oil recovery techniques.
Last year, Kinder Morgan acquired $1.81bn worth of South Texas assets from Nextera Energy Partners, enhancing its natural gas pipeline network.
Everyday your story is being told by someone. Who is telling your story? Who are you telling your story to?
Email your sustainable story ideas, professional press releases or petro-powered podcast submissions to thecontentcreationstudios(AT)gmail(DOT)com.
#thecrudelife promotes a culture of inclusion and respect through interviews, content creation, live events and partnerships that educate, enrich, and empower people to create a positive social environment for all, regardless of age, race, religion, sexual orientation, or physical or intellectual ability.
MORE FROM THE CRUDE LIFE
Please click that ♡ button, share, and subscribe.
Please share the links on social media.
Thank you thank you thank you for your engagement and support.
If you have a news tip, press release, guest suggestion or other content concepts, please email thecontentcreationstudios(AT)gmail(DOT)com
This post was brought to you in part by one of The Crude Life’s fantastic sponsors, please consider supporting their services or learning more about their organization by clicking on the banner below.
Whether you want basic obedience for a family pet or need professional handlers for narcotic and explosive detection, BCK-9 delivers reliable results. With over 20 years of experience in the working dog community, our founder, Dwayne Farris, brings unparalleled expertise in dog training and leak detection techniques.
The BCK-9 team brings a personalized approach to ensure we tailor our services to meet your needs, providing customized solutions that go further than the competition.
With our commitment to the well-being of our clients' dogs and precision and efficiency in our results, the dedicated team of professionals at BCK-9 Services delivers excellence in every service.
Follow BCK-9 Services on their website, Facebook, LinkedIn, Instagram, X (Twitter) or TikTok.