Alphabet Agency Impacts, Mergers Up
Kunal Patel, Dallas Federal Reserve, joins The Crude Life to breakdown the recent Energy Survey. This quarter’s survey also includes for the first time a set of questions regarding price expectations for oil and natural gas over six-month, one-year, two-year and five-year horizons.
The business activity index, the survey’s broadest measure of conditions energy firms in the Eleventh District face, was 2.0 in the first quarter, suggesting little to no growth during the quarter. The index was essentially unchanged from last quarter.
“The U.S. Environmental Protection Agency released guidance earlier this year regarding the methane charge from the Inflation Reduction Act,” Patel said. “We asked the question ‘what net impact will the methane charge have on your firm?’”
Here are the comments:
The most-selected response among E&P firms was “slightly negative,” chosen by 46 percent of respondents. Another 34 percent selected “significantly negative,” while 19 percent selected “neutral,” and 1 percent expect a positive impact. Meanwhile, the most-selected response among support services firms was “neutral,” chosen by 41 percent of respondents. The next most-popular response was “slightly negative,” selected by 27 percent of support service firms, followed by “significantly negative,” 20 percent. A small group, 11 percent, expect a “slight positive” impact.
When considering small and large E&P firms, executives at small E&P firms were more likely to report a significantly negative impact, 38 percent for small versus 20 for large.
In regards to mergers and acquisitions, Patel said they are up and will appear to continue. Although the survey didn’t specifically ask a question about mergers, there was some companies who commented on their impacts.
One comment said ‘our biggest concern is the evolving merger and acquisition activity for U.S. E&P operators. As the operator pool shrinks, the oilfield services will inevitably follow suit. This leads to concerns on additional oilfield services mergers or worse, aggressive pricing from competitors striving to stay alive,’” Patel said.
Costs increased at a slightly faster pace for both oilfield services and E&P firms. Among oilfield services firms, the input cost index increased from 21.3 to 31.2. Among E&P firms, the finding and development costs index was relatively unchanged at 24.2. Meanwhile, the lease operating expenses index increased from 22.6 to 33.7.
WOMEN IN ENERGY: Nominations Now Open for Women in Energy Awards 2024
The highly anticipated Women in Energy Awards 2024 are back, shining a spotlight on the outstanding contributions of women in the energy sector. Nominations are officially open, inviting individuals and organizations to recognize the remarkable achievements and leadership of women driving innovation, sustainability, and excellence in the energy industry.
Organized by World Elite Solutions, the Women in Energy Awards celebrate the pivotal roles women play in shaping the future of energy. From pioneering research to groundbreaking initiatives, these awards honor women who inspire change, challenge norms, and pave the way for a more inclusive and sustainable energy landscape.
“We are thrilled to announce the opening of nominations for the Women in Energy Awards 2024,” said Raluca Buna, CEO at World Elite Solutions. “Now more than ever, it’s crucial to recognize and celebrate the remarkable women driving progress and innovation in the energy sector. These awards serve as a platform to honor their achievements and inspire future generations.”
Nominations are sought across various categories, including:
Leadership Excellence Award
Innovator of the Year Award
Sustainability Champion Award
Rising Star Award
Corporate Excellence Award
Community Impact Award
Educator Award
Diversity and Inclusion Advocate Award
Lifetime Achievement Award
Nominees can be individuals, teams, or organizations making significant strides in advancing the energy industry while championing diversity and inclusion.
The nomination process is simple and accessible. Interested parties can visit [Website Link] to submit their nominations online. The deadline for nominations is May 2024, so don’t miss the opportunity to recognize the exceptional women shaping the future of energy.
Winners will be selected by a distinguished panel of judges comprising industry experts and leaders. The Women in Energy Awards ceremony, scheduled for September 2024, will bring together industry professionals, stakeholders, and supporters to celebrate the achievements of the finalists and winners.
For more information on the Women in Energy Awards 2024 and to submit nominations, please visit https://empowerher.energy/Nominate. Join us in honoring the women who are leading the charge towards a brighter, more sustainable energy future.
Click here for more information
EMERGING ENERGIES: Geothermal Showing It's an Emerging Energy
Barry Smitherman is the Chairman, President, and co-founder of the Texas Geothermal Energy Alliance (TxGEA), an organization dedicated to education, public awareness, and advocacy on behalf of the Texas geothermal industry. He joined The Crude Life to share how the oil and gas industry is working with geothermal energy.
The Texas Geothermal Energy Alliance (TXGEA) is a Texas-based, Texas-led advocacy organization created for the purpose of advancing geothermal energy in Texas.
“The Texas Geothermal Energy Alliance is comprised of a broad and interdisciplinary group of entities engaged in geothermal resource exploration, well drilling, plant construction, resource production and markets,” Smitherman said. “These supporters include representatives from the oilfield service sector, oil & gas operators, utilities, start-up companies working to advance geothermal relevant technologies, and leading scientists and engineers from a number of academic institutions across Texas.”
The Texas energy sector has benefitted tremendously from a diversified energy portfolio that has included oil, natural gas, wind, solar, coal, and nuclear power. In addition to these resources, Texas is also fortunate to have a tremendous amount of undeveloped geothermal resources, which could be developed in the near term to decarbonize residential and industrial heating and cooling, as well as to produce reliable and secure baseload electricity.
PETRO PROFILE: Jimmy Nelson, Owner Nelson Oil and Gas, Pettus, Texas
“We’ve been in the oil field in Pettus, Texas, a long time – over 45 years – so we’ve seen the ups and downs, that’s for sure. My dad has been in the business all his life and started Yegua Oilfield Service, a workover rig company. My two brothers and I started Nelson Oil and Gas (N.O.G.), but the downward turns in the ‘80s were almost a killer for all of us. What my dad did was pretty smart. He started buying stripper wells, so we always had something to fall back on. When things really slowed down, that income saved our a** a bunch of times. You can’t rely on customers all the time and it’s a small town, so it worked out really well for us.
A friend of mine, David Martin Phillip, was a partner of my dad’s years ago in his wells and so he knew the family history. What David does is he finds things. For instance, if somebody needs these old cars for a certain scene of a movie or there’s a certain way a movie needs to be set up, people in the industry would reach out to him.
Mark Bristol, the director of Accidental Texan, and Koen Wooten, the producer, went to David and said, “Hey, we’re looking for a drilling rig for a scene in the movie. You know anybody?”
And then they told him the budget. They had reached out to the big drilling companies and they didn’t want to do it. I guess the main thing was, it would be tying the rigs up [time-wise] and the other thing was the worry that somebody might get hurt on the scene.
SHARE YOUR SUSTAINABLE STORY: Baker Hughes Reports Progress on Wells2Watts Geothermal Research Consortium
.International energy service company Baker Hughes has published an excellent feature article on the progress of the research work being done as part of the Wells2Watts consortium. The full piece can be accessed via this link.
First announced in late 2022, the Wells2Watts consortium is led by Baker Hughes and aims to produce geothermal energy from abandoned oil and gas wells and non-productive geothermal wells. This is a private industrial partnership with Continental Resources, INPEX, Chesapeake Energy Corporation, and California Resources Corporation. The first consortium project will center around the test well that was commissioned in October 2023 at the Baker Hughes Energy Innovation Center located at the Hamm Institute for American Energy in Oklahoma City, Oklahoma.
“At the test well here in Oklahoma City we can test new geothermal technologies and also test how customers can use their existing infrastructure,” said Rob Klenner, Director of Geothermal Technology and Innovation with Baker Hughes and executive director of the Wells2Watts consortium.
“For example, where they’ve drilled oil and gas wells with high temperatures – that available heat could be used for geothermal. The idea is that they can transition an oil and gas well that’s no longer producing and become a renewable energy producer.”
TODAY IN ENERGY NEWS BRIEFS
CAER Researchers Utilizing Fly Ash to Increase Kentucky Oil, Natural Gas Production
Researchers at the University of Kentucky Center for Applied Energy Research (CAER) are investigating a new technology that they hope will give new life to Kentucky’s oil and natural gas wells.
Funded by the Kentucky Office of Energy Policy, CAER’s Cementitious Materials Research Group, along with an industrial partner, have developed a method to utilize coal combustion products to recover and enhance production from pre-existing oil and natural gas wells.
The team is using fly ash, which is a fine powder created from coal combustion. CAER is a global leader in fly ash research, having spent decades creating new processes for fly ash utilization. The powder is used in numerous products, including cements and concretes.
Targeting oil and natural gas wells that have either been abandoned or are no longer in production, the CAER team is using ash fracking, a green technology paired with simple pumping equipment that creates a small operational footprint — a crucial factor in Eastern Kentucky topography.
In some cases, the industry partner has proven the rejuvenated wells have surpassed original production levels. Because fly ash is uniquely small and spherical compared to conventional sand, it does not settle quickly which eliminates the need for viscosity modifiers and results in simpler post-fracking clean up. The process uses less water and can reuse well water, mitigating environmental contamination.
Not a Scam – ODNR Sends Letters to Some BG residents about Orphan Oil or Gas Wells on Properties
Recently some Bowling Green residents received letters from the Ohio Department of Natural Resources, Division of Oil and Gas Resources Management, in partnership with Verdantas LLC, to conduct evaluations on properties for the presence of abandoned or orphan oil/gas wells.
The City of Bowling Green understands the significance of this endeavor and assures property owners that this initiative is not a scam and could be highly beneficial. This identification process includes employing an unmanned aerial system (UAS) based aerial magnetic survey to identify the general location of any oil or gas wells that may be abandoned or orphaned.
This non-invasive method involves flying a drone over the property to determine if any wells are located just below the surface.
Many of these wells do not cause problems for landowners, in fact most people do not even know they are there. The division is conducting this evaluation to determine whether an orphan well may be located on your property and if so, whether the wells may qualify to be plugged with State of Ohio funds under the Orphan Well Program.
Holy Fetterman, Batman; Pennsylvania Is Flip-Flopping!"
An interesting juxtaposition is taking place relative to two of Pennsylvania’s most high profile elected officials: Governor Josh Shapiro and U.S. Senator John Fetterman. Fetterman was elected in 2022 as a darling of his party’s Left wing, while Shapiro campaigned as a pragmatist and proudly boasts about getting stuff done.
Conventional wisdom, which typically proves to be unwise, held that once in the U.S. Senate John Fetterman would so far to the Left he would make Bernie Sanders look like Ted Cruz. Fetterman, however, appears to be as comfortable charting his own course as he is wearing hoodies and gym shorts.
The far-Left wing of the Democrat Party, which is to say almost all of it, is going bat crap crazy over Israel’s war against the Hamas terrorists who executed a brutal slaughter of its citizens last October. President Biden has attempted to straddle the fence on the issue, but Fetterman has been an unabashed defender of Israel and a proponent of its right to self-defense.
Illegal immigration has surged to the top of voter concerns as fentanyl deaths skyrocket, crimes committed by illegals grab headlines, and the cost to taxpayers mount. Biden Administration policies are responsible for the debacle, but the President shows no signs of doing anything other than attempting to blame Republicans for the problem. Fetterman has spoken out in favor of more stringent border controls taking a pragmatic approach to the issue.
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Today In Energy: Alphabet Agency Impacts, Mergers, Petro Profiles and Women in Energy Awards