CLASS II SALTWATER DISPOSAL (SWD) FACILITY BUSINESS OPPORTUNITIES
A Leader In Salt Water Disposal Systems
Hew-Tex Oil & Gas’s Managing Member, Peter Hewett, has been in the upstream side of the energy industry for more than four decades of crude oil producing operations involving the generating of oil and gas drilling prospects (exploration and production of hundreds of oil and gas wells) both domestic onshore and offshore USA. Thus, Hew-Tex Oil & Gas (“HTOG”) has extensive knowledge and experience in producing crude oil and dealing with the associated formation saltwater produced by nearly every crude oil well.
It was a natural shift into the saltwater disposal business by Mr. Hewett and the Hew-Tex Oil & Gas management team early in 2017 after the discovery (late 2016) in the Permian Basin of more than 20 billion barrels of proven oil reserves and 16 trillion cubic feet of natural gas reserves that were found through the use of new horizontal drilling extraction techniques and 3-D seismic technology. The niche that Mr. Hewett decided to specialize in was the result of a hands-on awareness that the operators and producers drilling the hundreds of oil wells, needed to find a way to dispose of the significant volume of saltwater that is produced along with the crude oil in the Permian Basin. The Permian Basin is comprised of the Delaware Basin on the west, the Central Basin Platform in the middle, and the Midland Basin to the east. Today, there are currently as many active drilling rigs in the Permian Basin as there are combined throughout the balance of the entire USA, both onshore and offshore. Several thousand wells are planned to be drilled by companies like ExxonMobil, Occidental Petroleum, Chevron, Apache Corp., Shell Oil Western, Anadarko E&P, EOG Resources, Cimarex Energy, Energen Resources, Endeavor Energy, Matador Production and many other independents.
Today, the average Permian Basin oil well initially produces 650 barrels of oil per day will also produce and estimated 2,000 barrels of formation saltwater per day. This ratio of 3 barrels of saltwater per 1 barrel of crude oil creates a huge problem for operators and producers. There is a substantial need for approved saltwater disposal well facilities to inject this saltwater as well as to clean and wash the tanker and vacuum trucks and frac tanks that is required under the EPA (Environmental Protection Agency) by statutory law of the Texas Water Code and enforced by the Texas Railroad Commission. If an operator has no place to dispose of the saltwater, it has no choice but to shut-in the well.
Hew-Tex Oil & Gas, believes the commercial saltwater disposal business in the West Texas Permian Basin area will continue to be a very lucrative business opportunity for years to come. The economics are simple…spend the least amount of capital to build a state-of-the-art disposal facility that has the potential to generate significant cash flow 24/7. This website will discuss in subsequent sections all of the relevant areas pertaining to saltwater disposal business opportunities.
HOUSTON and NEW YORK (Bloomberg) – Major oil companies are investing more in U.S. shale, not less, after the recent tumble in crude prices.
It’s a far cry from four years ago when OPEC declared war on American shale areas, which at the time had some of the highest costs anywhere in the world and were often the first on the chopping block during tough times.
The cost of shale production has fallen so much since then that it’s becoming a safe haven for major oil companies in times of volatile prices, providing rapid, reliable growth and quick returns even with crude trading for just over $50/bbl, down by almost a third since the start of October.
The U.S. shale sector has helped boost American production to an average of 10.9 MMbpd this year, the most on record. Output is forecast to grow a further 11% next year, according the Energy Information Administration. read more…
Paul Hart Midstream Editor-at-Large, Oil and Gas Investor Hart Energy – Tuesday, January 15, 2019 - 7:30am
DALLAS—Permian Basin drillers have begun to standardize drilling and completion programs that maximize production while keeping costs reasonable, according to the CEO of Dallas-based Haas Engineering, a reserve evaluation firm.
“We’re not seeing as much experimentation now,” Thad Toups told attendees at a Petroleum Engineer’s Club of Dallas luncheon Jan. 11. While “proppant is a driver in recovery,” Toups added as one example, “3,000 pounds [per foot] in my eyes isn’t any better than 2,500 pounds. Unless there is some sort of price change, I think we’re going to be dealing with 2,500 pounds” as something of a Permian standard. read more…
LONDON (Bloomberg) — The year has barely begun but it’s already shaping up nicely for OPEC, with crude rebounding sharply after the worst fourth-quarter performance since 2014.
A new production cuts deal with Russia and thawing U.S.-China trade relations have given the market a boost. But for OPEC, good news often comes hand-in-hand with bad news. For that, look no further than the Permian basin.
The biggest shale play in the U.S. is set to pump 3.8 MMbpd this month, according to Energy Information Administration data. That’s more than the United Arab Emirates, the Organization of Petroleum Exporting Countries’ third-largest producer. read more…
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