Current Issue Contents - February 2021
Frigid February temperatures and strengthening oil market fundamentals stoked natural gas demand, rallied oil prices to 12-month highs and roused bullish sentiment on Wall Street, but they are hardly the only indicators of better times ahead in oil and gas. In the field, U.S. independents are laying a solid framework for the future by making new discoveries and capturing upside value in proven basins. February’s Operations America cover story shares conversations with executives at EOG Resources, BKV Corporation, DoublePoint Energy and TGS on some of the properties, projects and plans that may characterize the next wave of industry activity. From there, Crude Purchasing looks at best practices to help operators maximize the value of their oil sales volumes, and technologies to improve measurement accuracy. The Permian Resource Solutions section then features analysis of the frac sand market and potential supply obstacles, and presents case studies of how advanced stage-level diagnostics can optimize well spacing and completion performance. Industry news includes Official Issues Updates for OOGA and LOGA. Cover design by Amanda DeMoss. Issue photography courtesy of Cudd Energy Services.
- COVER STORY: With market fundamentals flashing bullish signs for both oil and natural gas, and rig and frac spread counts continuing to climb, AOGR assesses the way forward through the eyes of independents that are positioning themselves for the future, in part, by focusing where it all began for U.S. shale plays. In South Texas, EOG Resources is developing a new field discovery in the Eagle Ford and Austin Chalk, the grandaddy of the modern resource play. In North Texas, KBV Corp. is deploying technology to optimize production in the Barnett, where shale gas was first commercialized. In West Texas, DoublePoint’s multi-rig program is targeting stacked intervals, including the Spraberry, the Permian’s original tight play. Meanwhile, technology providers such as TGS are helping operators capture upside potential across their foundational and legacy assets. | Special Q&A with Ken Boedeker, Eric Jacobsen, Cody Campbell and Matt Mayer
- Platts S&P Global’s American GulfCoast Select Offers Crude Value Clarity | by Matthew Eversman
- Strategies, Technologies Optimize Crude Purchasing | by Tim Beims and Kari Johnson
Accurate oil quality and volumetric measurements are critical for both the producer and the purchaser, making operational best practices and best-available technologies fundamental to maximizing the value of produced crude.
PERMIAN RESOURCE SOLUTIONS
- Frac Sand Bottlenecks May Slow Activity Rebound | by Tim Beims and Colter Cookson
Less than a year after an historic collapse in demand led to excess supplies of everything from diesel to drill pipe, the word “shortage” is suddenly finding its way back into the industry’s vocabulary, including in the outlook for the U.S. frac sand market.
- Smart Tracers, Advanced Diagnostics Yield Stage-Level Insights | by Talgat Shokanov, John Oliver and Adilkhan K. Shokanov
Stage-level flow profiles represent a novel advancement in understanding and measuring direct frac hits, while promoting a surgical interwell communication strategy to optimize well spacing and increase production rates and EURs.
- In the Courts: Scientific transparency regulation falls in court; Settlement halts leasing on 45,000 federal acres in Piceance; North Dakota state court strikes down pore space statute
- EIA Outlook: Hydrocarbons continue to account for majority of U.S. energy supply and demand through 2050
- Industry News: IOGA hires Stewart as executive vice president; PESA, AESC combine to form new Energy Workforce & Technology Council; Late, Morris and Newman inducted into Petroleum Hall of Fame
- Acquisitions and Startups: Enerplus agrees to buy Williston Basin operator; Fifth Creek Energy team launches next startup; Contango closes deal for low decline-rate producing assets
- Federal Update: Biden moves quickly on green agenda
- Industry Outlook: Evercore sees more 2021
OFFICIAL ISSUES UPDATE
- OOGA: Ohio industry looking to pick up the pace
- LOGA: Association seeks to revive activity incentives
- Tech Connections
- Washington Watch