John Gibson talks about the difference between natural gas in the Bakken and Texas.
Gibson is non-executive chairman of the board of ONEOK, ONEOK Partners and ONE Gas. He most recently was chairman and chief executive officer of both ONEOK and ONEOK Partners after serving as chairman, president and chief executive officer of ONEOK and ONEOK Partners.
Gibson joined ONEOK in 2000 as president of energy, responsible for the company’s natural gas gathering and processing, and transportation and storage businesses. In 2006, he was named president and chief operating officer of ONEOK Partners, the master limited partnership that contains the midstream natural gas and natural gas liquids businesses. He was elected chief executive officer of ONEOK and president and chief executive officer of ONEOK Partners in January 2007, becoming chairman of ONEOK Partners later that year. In January 2010, he became president of ONEOK; and in May 2011, he became chairman.
Gibson began his career in the energy industry in 1974 as a refinery engineer with Exxon Company, USA. He spent 18 years with Phillips Petroleum Company in a variety of domestic and international positions in the natural gas, natural gas liquids, and exploration and production businesses. When Gibson left Phillips in 1995, he was vice president of marketing of GPM Gas Corporation, a wholly owned natural gas gathering, processing and marketing subsidiary. Prior to joining ONEOK, Gibson was executive vice president of Koch Energy, Inc., a subsidiary of Koch Industries, responsible for its interstate natural gas pipelines and gathering and processing businesses.
A native of Kansas City, Kansas, Gibson earned an engineering degree in 1974 from the University of Missouri at Rolla, now called Missouri University of Science and Technology. He also is a graduate of the Harvard Business School’s Advanced Management Program.
John Gibson
John Gibson Chairman, Ceo, one oak inc and one oak partners
Jason Spiess
Here at the press conference at the State Capitol announcement of 1/6 plant here in North Dakota. 3.4 billion. I have down in my notes and maybe you can elaborate on those two numbers I just recited
John Gibson
right. We just announced this latest plant, which will be uh, 200 million cubic foot plant. And once we've done, we have completed building that plant and the infrastructure associated with it, we will have invested 3.123 point $5 billion in North Dakota in
Jason Spiess
this natural gas. It's starting to become a little bit more known as the natural gas gets more and more play that this is a rich liquid natural gas and that's quite a bit different than the dry gas. Do you guys have an elevator pitch to where you can let someone know the difference between that or is it a fairly complicated answer that we need a chemistry here for?
John Gibson
Well, I don't need you, I don't think you need to review your chemistry, but but the way to think about it is that in a cubic foot of natural gas produced in the Williston Basin, you will find somewhere around 8-12 gallons of raw natural gas liquids. That's ethane, propane, butane is all mixed up. If you go down into Oklahoma or texas in the panhandle, you might, that same cubic foot will have say three gallons per M.
C. F. So as you can tell by just the comparison the two numbers, there's a whole lot of liquids in the natural gas in the Wilson and of course that's what is attractive to us is because we also are a natural gas liquids business.
Jason Spiess
$30 billion dollar investment in the petrochemical industry happening right now in the United States. Where do you see that heading? In terms of the transportation industry, the residential industry? Just where do you see natural gas heading over the next decade here in the United States? Well,
John Gibson
first on the investment in the petrochemicals, that's what's driving our interest in the natural gas liquids business and our natural gas liquids business allows us to gather these raw NGS all the way up in the Williston and re deliver those finished products to the pet cams. So we're one of the largest suppliers feedstock to the pet kim's. So seeing them invest those large amounts of money is a good signal for us.
The natural gas. Uh, this whole natural gas show play has changed the country's view of natural gas as a sustainable, reliable energy source and really changed the entire dynamic of the United States in particular when you figure a lot of this, if not all of this. And the Wilson is being driven by crude oil, which is also going to change the entire industry structure. Is it really screwed all without
Jason Spiess
getting political and this is not the question to be political. I just wanted to get your comments a little bit on the, the importing and exporting part of the natural gas. Some of the reading I was doing it, it becomes a heavily debated topic but it is a global economy. So just just an overall comment on the importing exporting when it comes to natural gas.
John Gibson
Well like other products that for example propane, we export propane as a country and there's because there's a market, there's a need. So the same should be true for natural gas as well as any other energy product or for that matter any product that the U. S. Producer can compete in
Jason Spiess
anticipating When is this coming online?
John Gibson
The plan will be completed at the end of 2015. Thank you much sir. Thank you very
Jason Spiess
much.
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Below is the raw, unedited transcript from our artificial intelligence translator.
John Gibson
John Gibson Chairman, Ceo, one oak inc and one oak partners
Jason Spiess
Here at the press conference at the State Capitol announcement of 1/6 plant here in North Dakota. 3.4 billion. I have down in my notes and maybe you can elaborate on those two numbers I just recited
John Gibson
right. We just announced this latest plant, which will be uh, 200 million cubic foot plant. And once we've done, we have completed building that plant and the infrastructure associated with it, we will have invested 3.123 point $5 billion in North Dakota in
Jason Spiess
this natural gas. It's starting to become a little bit more known as the natural gas gets more and more play that this is a rich liquid natural gas and that's quite a bit different than the dry gas. Do you guys have an elevator pitch to where you can let someone know the difference between that or is it a fairly complicated answer that we need a chemistry here for?
John Gibson
Well, I don't need you, I don't think you need to review your chemistry, but but the way to think about it is that in a cubic foot of natural gas produced in the Williston Basin, you will find somewhere around 8-12 gallons of raw natural gas liquids. That's ethane, propane, butane is all mixed up. If you go down into Oklahoma or texas in the panhandle, you might, that same cubic foot will have say three gallons per M.
C. F. So as you can tell by just the comparison the two numbers, there's a whole lot of liquids in the natural gas in the Wilson and of course that's what is attractive to us is because we also are a natural gas liquids business.
Jason Spiess
$30 billion dollar investment in the petrochemical industry happening right now in the United States. Where do you see that heading? In terms of the transportation industry, the residential industry? Just where do you see natural gas heading over the next decade here in the United States? Well,
John Gibson
first on the investment in the petrochemicals, that's what's driving our interest in the natural gas liquids business and our natural gas liquids business allows us to gather these raw NGS all the way up in the Williston and re deliver those finished products to the pet cams. So we're one of the largest suppliers feedstock to the pet kim's. So seeing them invest those large amounts of money is a good signal for us.
The natural gas. Uh, this whole natural gas show play has changed the country's view of natural gas as a sustainable, reliable energy source and really changed the entire dynamic of the United States in particular when you figure a lot of this, if not all of this. And the Wilson is being driven by crude oil, which is also going to change the entire industry structure. Is it really screwed all without
Jason Spiess
getting political and this is not the question to be political. I just wanted to get your comments a little bit on the, the importing and exporting part of the natural gas. Some of the reading I was doing it, it becomes a heavily debated topic but it is a global economy. So just just an overall comment on the importing exporting when it comes to natural gas.
John Gibson
Well like other products that for example propane, we export propane as a country and there's because there's a market, there's a need. So the same should be true for natural gas as well as any other energy product or for that matter any product that the U. S. Producer can compete in
Jason Spiess
anticipating When is this coming online?
John Gibson
The plan will be completed at the end of 2015. Thank you much sir. Thank you very
Jason Spiess
much.
Support American Entrepreneurs! Click on the image and use the promo code OTIS!
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The Crude Life Podcast: John Gibson, ONEOK Partners