Justin Gauthier, MSc

Time to move on, and I mean now. When your plates and coffee cups start falling off the table the public will demand change. With a 5.1 seismic activity, the plates and coffee cups are falling off the table. The industry does not have a Frac problem, a drilling problem or an air quality problem. The energy industry has a water benefical use problem. There is a distinct difference between recycling and calling it beneficial use and actual beneficial use. It is not even a disposal problem, they (midstream) is excellent at what they do. Profitably paying share holders, generating income, assuming liability for producers. Reality is, that is not enough. I can not imagine a world without oil and gas which would lead to the disruption of our agriculture system, because we can not feed our world. The green new deal is about more than solar, or wind energy and we may get there and it is no sin to try. It is a lack of good stewardship practices to continue a current disposal process without expediting treatment trains and agricultural beneficial use. In closing at the last conference (I was on a panel) I stated, I see the exit sign from here, I’ll show myself out. I stated and will restate, “I look out over this audience and I see Oxy/ Saudi Aramco/ Exxon/ EOG/Devon/and hundreds of smaller producers, but what I see is enough net worth to cure World Hunger and you expect me to believe this industry can not figure out how to treat water and put it to beneficial, use for agriculture and industrial use?” Truth is at this time the industry has not yet figured out how to own, profit, remove liability, and several other obstacles and challenges. Enter a patent process from a most unusual source. A prescriptive approach Inventor Marvin Nash Patent #11844316 Type Grant 307-287-6711 Be glad to help as you go forward with Conservation by Design. It’s the right idea at the right time!

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Enterprise Bets on a Dark Horse Back in 2020, Houston-based Piñon Midstream set out to cure a massive headache for producers in Perm Town’s most prolific eastern flank of the Delaware in N.M., and Texas—namely, the lack of infrastructure to gather and treat pervasive sour gas. Solving that problem would no doubt be a grand introduction into the nation’s hottest play. Solving another would be even grander. So, in 2021, Piñon unveiled two of three plants comprising its Dark Horse sour gas treating and CCS facility in Lea County, N.M. At the time, Dark Horse offered amine treating capacity of 170 MMCFD, the state’s largest and deepest acid gas injection well, and CO2 and H2S capture and sequestration. Expansions would continue over the years. And at least one of the Big Five midstream operators was closely watching. Reese Energy Consulting today is following the latest news from Houston-based Enterprise Products, which has found a red-carpet entry into this slice of the Delaware with a $950 million acquisition of Piñon Midstream. This, Enterprise says, saves the company three to four years building out itself. Pinion’s Dark Horse is the largest facility of its kind in N.M., sitting fat and happy in an area where drilling has been largely restricted due to the lack of sour gas treating and acid gas injection capacity. And where more than 7,500 remaining well locations wait to be loved. The deal with Piñon includes 50 miles of gathering and redelivery pipe, five 3-stage compressor stations, two of the Delaware’s highest capacity and deepest acid injection wells at 18,000’, and 270 MMCFD of H2S and CO2 treating facilities. Expansions to 450 MMCFD are slated for completion next year. Enterprise reports adding a third injection well to increase capacity to 750 MMCFD. What do you think? Learn more about REC and our natural gas, midstream, and Permian consulting services at https://lnkd.in/ebXT2mS. For more information about our latest online natural gas training courses, visit us at https://lnkd.in/g_jDyx_Y. #energy #midstream #naturalgas #ngls #reeseenergyconsulting

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Texas oil & gas producers are revolutionizing energy production. With over 99% utilization of all gas produced, record-breaking output and advanced water recycling, the Lone Star State is proving that a sustainable energy future isn't just a goal—it's a reality. 

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M&A chatter lately has it that inventory is scarce, the pool of potential U.S. shale targets are drying up and consolidation is slowing. But deal making may be poised to shift from the recent epicenter of M&A, the Permian Basin to the Bakken, Marcellus and elsewhere. Research firm Rystad Energy said $80 billion worth of North American assets remains on the market, with the U.S. shale sector expected to be the engine driving activity. Shale assets account for 66%, slightly more than $52 billion, of total assets on the market. Some potential deals up for grabs include Bakken-focused Grayson Mill Energy, Uinta-focused XcL Resources, Exxon Mobil's Bakken portfolio, EQT's remaining non-operated Marcellus portfolio and certain Haynesville assets from Shell and BP, Rystad said in an April 28 report. Globally, the first quarter saw the biggest dealmaking tab in five years as deal M&A value crossed the $64 billion threshold. By value, deals were up 145% compared to first-quarter 2023. The primary fuel for M&A: U.S. shale consolidation. For the remainder of the year, Rystad said the industry could see another $150 billion in M&A. “The Permian Basin has dominated recent dealmaking, but other shale plays look set to attract significant investments in the near future, with about $41 billion of non-Permian opportunities on the market,” Rystad said in an April 28 report. In some cases, deals already announced will spawn other deals. Exxon Mobil, Chevron, Occidental Petroleum and Diamondback Energy are set to make divestitures that could “invigorate short-term M&A activity,” Rystad said. With significant recent acquisitions, the companies are planning to divest non-core assets, “paving the way for growth among regional upstream players,” Rystad said. Chevron, for instance, has plans to divest approximately $10 billion to $15 billion worth of assets by 2028. Occidental’s divestiture target ranges between $4.5 billion and $6 billion. “The Permian has been the focal point for M&A activity in recent times, but that focus is waning as available assets in the basin become scarce,” said Atul Raina, vice president of upstream research at Rystad. “But with appetite still strong, deal-hungry players are looking outside the basin for acquisitions. A power shift could be on the cards, with non-Permian assets taking center stage in the future North American deals pipeline.” Outside of the U.S., deal activity has remained strong in the first quarter of 2024, with $10.5 billion changing hands at a 5% year-on-year increase, Rystad reported. Upstream majors BP, Chevron, Shell and TotalEnergies collectively accounted for $5.2 billion in deals. Rystad said demand for gas-producing resources has been high, representing about 66% of total resources bought and sold in first quarter 2024. 

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Big news this morning with XCL's Uinta Basin assets being acquired by SM Energy! This deal should put a spotlight on a remarkable basin: wells in the Uinta perform as well or better than the Permian or Williston. Looking at 2021 well results, XCL's wells outperform SM's by an average of 30%. Of course, the asset is still relatively early in development, but this is performance worth paying attention to. In our discussions with clients on the Uinta, we have often referred to it as a "mini-Delaware" with extreme overpressure and stacked pay, and XCL's asset covers much of the deep, overpressured window. In the press release, SM quoted potential of 17 benches (!!) for development. Last week, we coauthored a paper with XCL on Uinta Basin production drivers (from which the bottom chart is taken). For more on that, follow the link in the details of the image. #oilgas #uinta #permian

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Dean Foreman, Ph.D., Chief Economist, Texas Oil & Gas Association joined Grayson Brulte on The Autonomy Economy podcast to discuss key trends and geopolitical issues that are impacting the global oil and natural gas markets. Without energy, there is no economic growth. As we prepare to usher in the autonomy economy, it's important to have a clear understanding of the oil and natural gas markets as over 96% of all manufactured goods are manufactured using petrochemicals. 🎧 Listen on Apple Podcasts: https://lnkd.in/ePis7wfS 🎧 Listen/Watch on Spotify: https://lnkd.in/em7enjtt 🎥 Watch on X: https://lnkd.in/etEQhTv3 🎥 Watch on YouTube: https://lnkd.in/eN_2cubm #RoadToAutonomy #AutonomyEconomy #Energy #OilandGas #Oil #OilMarkets #EnergyMarkets #GeoPolitics #Economist #Economy

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April's Showers of Discussion Lead to May’s Nuggets of Knowledge E&P Operators attending Crüe Club Topic Series events: 102 Topics: M&A, Leadership, Operational Challenges, Forecasting in Volatile Markets, AI in the Oilfield, Future of the industry, Self-sourcing in-field wet sand, Frac'ing Geometry in the Haynesville, Energy Policy Hours spent in in-depth round table industry discussions: 42 Hours of uninterrupted time. We’re wrapping up an incredible spring with the Topic Series at Crüe Club this month. These roundtable symposiums, led by selected guest facilitators, have been nothing short of impressive. From packed events to in-depth discussions, sharing perspectives, experiences, and insights has enriched all of us. Thank you to everyone who participated and made these events a resounding success! This summer, we’re excited to shift gears and introduce something special: Professional Growth Workshops powered by Exec Crüe. These workshops are designed for those looking to level up, expand their networks, and accelerate their professional development. While this summer we take a brief pause from our Topic Series to host more casual yet strategic connection events for our members and E&P Operators/Producers, we’re gearing up for an impactful summer. Whether you're looking to elevate your company’s exposure or engage in pivotal conversations that drive and shape the industry, these workshops are for you. Thank you to all who have attended the events and looking forward to diving into more interesting subjects with you! Limited memberships are available. #oilgas #oilandgasindustry #networking #connections #professionaldevelopment

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