HEW-TEX INDUSTRY NEWS ROOM

February 5, 2019: By Iris Dorbian

Blackstone Energy Partners has formed Waterfield Midstream, which has secured a $500 million equity commitment. Waterfield is a provider of water management services to producers in the Permian Basin.

PRESS RELEASE

THE WOODLANDS, Texas & NEW YORK–(BUSINESS WIRE)–Today, Blackstone (NYSE:BX) (“Blackstone”) announced that funds managed by Blackstone Energy Partners L.P. have formed Waterfield Midstream (“Waterfield”), a full-cycle provider of water management services, including water gathering, treatment, recycling and disposal, to provide solutions to producers in the Permian Basin. Waterfield is Blackstone’s water midstream platform in the Permian Basin and has a $500 million equity commitment to pursue greenfield development and acquisitions of water-related infrastructure, helping producers minimize the environmental impact and operating cost of oil and gas production.

Waterfield is led by Co-Chief Executive Officers Scott Mitchell and Mark Cahill, who previously built and led Anadarko’s and Western Gas’s Permian Basin commercial water infrastructure platform. Since partnering with Blackstone last summer, Waterfield has put together a highly skilled team that brings together upstream and midstream technical expertise with a deep understanding of the subsurface and operating characteristics of the Permian Basin. This expertise positions Waterfield to provide reliable, turn-key services for its customers. read more…

By Sergio Chapa, Houston Chronicle: Published 10:46 am CST, Tuesday, February 5, 2019

Goodnight Midstream has put two pipeline systems into service that will move wastewater from oil and natural gas wells in the Permian Basin to disposal sites.

The Dallas saltwater disposal well operator announced that its Llano Pipeline System in New Mexico and its Rattlesnake Pipeline System in West Texas are now in commercial service.

Combined, the two pipelines will be able to move 600,000 barrels of produced water per day, which is roughly 25.2 million gallons of produced water per day.

“With our first two trans-basin pipeline systems operational, Goodnight Midstream can provide reliable and secure produced water transportation services for our customers operating in the Delaware Basin,” Goodnight Midstream CEO Patrick Walker said in a statement. read more…

 David Blackmon Forbes.com: Contributor : Energy

Despite recent low crude prices and a significant drop in the DrillingInfo rig count during January, the giant Permian Basin of West Texas and Southeast New Mexico continues to expand its role as the main driver of energy growth in North America. In just the past week, we have seen the following significant events that are attributable all or in part to what has become the world’s second most-productive oil and gas resource:

A driver of upstream and midstream profits – Both ExxonMobil and Chevron beat analyst expectations with their 4th quarter earnings announcements, driven mostly by their upstream and midstream developments in the Permian. Exxon beat forecasts by almost one-third, with its full-year 2018 earnings coming in at the highest level since 2014. Driven by its Permian drilling, Chevron’s oil and natural gas production rose to an all-time high as the company produced a record 3 million barrels of oil per day (bopd) during the 4th quarter. read more…

freightwaves.com: January 24, 2019 John Paul Hampstead

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By Sergio Chapa, Houston Chronicle – Published 10:06 am CST, Wednesday, January 23, 2019

University Lands has awarded a contract to a Houston-based joint venture to provide water services to oil and natural gas operations on 167,000 acres of state-owned lands in the Permian Basin of West Texas.

Houston-based UL Water Midstream LLC will source groundwater for new hydraulic fracturing projects as well as gather, store, transport, recycle, and dispose of wastewater produced by oil and natural gas wells on university-owned lands in Ward, Winkler and Loving counties.

UL Water Midstream LLC is a joint venture of two Houston oil field water companies — H2O Midstream and Layne Water Midstream. read more…

Worldoil.com: By ALEX NUSSBAUM on 1/18/2019

NEW YORK (Bloomberg) — Oil hasn’t started off this strong in 18 years.

After closing out 2018 in free-fall amid fears of a global supply glut and economic slowdown, U.S. crude prices have rebounded more than 18% to start this year. That’s the biggest climb over the first 13 trading days since January 2001, according to New York Mercantile Exchange data compiled by Bloomberg.

The swift climb higher has coincided with a steep drop in volatility. After reaching its highest level in more than two years, an index tracking West Texas Intermediate crude options prices has sunk to the lowest since November.

Why all the optimism? Analysts and traders credit progress in U.S.-China trade talks, a more dovish stance on interest-rate hikes from the Federal Reserve and signs that OPEC-led production cuts are starting to take a bite out of supplies.

By KEVIN CROWLEY, ALIX STEEL AND RACHEL ADAMS-HEARD on 12/11/2018

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…

Worldoil.com: By CHRISTOPHER SELL on 1/15/2019

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…

Worldoil.com: By KEVIN CROWLEY on 1/13/2019

HOUSTON (Bloomberg) — Chevron Corp. will spend about half its capital budget on projects that yield quick returns over the next three years, underscoring the importance of shale as it prepares for growing uncertainty in how the world consumes energy.

The U.S. oil giant will spend about $9 billion to $10 billion a year on “short-cycle investments” through 2022, primarily focused on the Permian Basin, the world’s biggest shale oil region, the San Ramon-based company said in a presentation on its website Friday. The Permian is on course to make up about one in five barrels the super major pumps worldwide.
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