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No More Gas Flaring: the Permian's Double E Pipeline is brought into service in West Texas

A natural gas pipeline run by the U.S. energy company Summit Midstream Partners LP has been operational in New Mexico and Texas since Nov. 18.

Double E was built as a joint venture, where Summit holds 70% of the equity. Federal energy statistics estimate the project's cost at $450 million.

Permian Basin producers will benefit from improved downstream market access through this pipeline, possibly fueling new production growth in New Mexico and West Texas. It stretches approximately 135 miles from the Lane Processing plant to the Waha Hub in West Texas, adding approximately 1.35 Bcf/d of flow capacity to the Delaware Basin core.

As a result of its strategic location, Double E will be within reach of at least 20 gas processing plants, including six in New Mexico and one in Texas.

In addition to providing capacity holders with access to West Texas' benchmark Waha Hub, the pipeline also connects key downstream pipelines, including Kinder Morgan's Gulf Coast Express and Permian Highway Pipelines, adding to the system The Trans Pecos Pipeline that connects to the United States-Mexico border.

Due to the fact that the Double E pipeline should be able to transport more than 1 billion cubic feet of gas per day, this amount of gas would be sufficient to supply 5 million U.S. homes every day.

In the Permian Basin, the country's biggest shale oil region, Double E will be the first of several gas pipelines to begin serving customers this year, which should help operators reduce gas flaring in the area. Even though Permian drillers mainly target oil, they also extract a lot of gas.

In the past, many drillers burned off their waste gas because it was impossible to move it or process it in the region due to a lack of pipelines and infrastructure. Yet, as more pipes have been put into service, flare-ups have declined.

This year, Texas has also seen the commissioning of the 2 Bcf/d Whistler, the first phase of the 1.5 Bcf/d Gulf Coast Gemini, the 1 Bcf/d CJ Express, and the 2.1 Bcf/d Permian Highway, now with the addition of fully-operational Double E.

And If you are interested in learning more about the industry's gas infrastructure, connect with our Houston sales office to see our intelligence for yourself.
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The Final Stretch: Energy Transfer Pushes For Mariner East Project Ahead Of The Stunning Q3 Results

Energy Transfer's lead in the world's NGL exports booked the company another successive quarter. With a global market share of almost 20%, the company is nigh unstoppable. But will it be enough to, finally, push the Mariner East project over the edge? If everything goes as planned, Mariner East's last segment could be operational by the end of the first half of 2022.

Crestwood & Oasis Midstream merge to create a top Williston #basin player. $1.8 billion deal is expected to close during the Q1 of 2022. The transaction will result in a 21.7% ownership stake for Oasis in Crestwood common units. The remaining ownership of Oasis in Crestwood will also be of benefit to the company since it will create a diversified midstream operator with a strong balance sheet and a bullish outlook after this accretive merger.

Oil output in the Permian Basin in Texas and New Mexico is supposed to go up 88,000 bbl/d to a record 5.219 million bbl/d in June, as the U.S. Energy Information Administration (EIA) announced in its report on May 16. Additionally, gas productivity in the Permian Basin and the Haynesville in Texas, Louisiana and Arkansas will rise to record highs of 20 Bcf/d and 15.1 Bcf/d in June, respectively. Given that this growth has been expected, recent global market changes make forecasting the output even more challenging. Learning how production will change is easier with early activity tracking, a new service recently launched by Rextag – Pad Activity Monitor. With the help of PAM, you are able to monitor well pad clearing, drilling operations, fracking crew deployment and completions with new data collected approximately every 2 days. Additionally, it cuts down activity reporting lag times by at least 98%, from 120-180 days down to just 5-8 days. In order to access reports, charts, tables, and mapping visualizations via Rextag’s Energy DataLink use a web-based application allowing users to filter, download and identify activity on a map or data table. Moreover, customers will be able to set up daily, weekly, and monthly email report notifications.

The EIA forecasts that total output in the main U.S. shale oil basins will increase 142,000 bbl/d to 8.761 million bbl/d in June, the most since March 2020. Oil productivity in the Permian Basin in Texas and New Mexico is supposed to go up 88,000 bbl/d to a record 5.219 million bbl/d in June, as the U.S. Energy Information Administration (EIA) announced in its report on May 16. In the largest shale gas basin, the productivity in Appalachia in Pennsylvania, Ohio and West Virginia will grow up to 35.7 Bcf/d in June, its highest since beating a record 36 Bcf/d in December 2021. Gas output in the Permian Basin and the Haynesville in Texas, Louisiana and Arkansas will rise to record highs of 20 Bcf/d and 15.1 Bcf/d in June, respectively. Speaking of the Permian future output, putting hands on upcoming changes in production has recently been made easier with the new Rextag's service - Pad Activity Monitor. Thanks to satellite imagery and artificial intelligence, customers are able to monitor the oil and gas wells and are provided with near real-time activity reports related to drilling operations. However, it is noticed that productivity in the largest oil and gas basins has decreased every month since setting records of new oil well production per rig of 1,544 bbl/d in December 2020 in the Permian Basin, and new gas well production per rig of 33.3 MMcf/d in March 2021 in Appalachia.

No sooner had the crude prices soared above $100/bbl than the industry professionals believed in an incredible growth of drilling activity in North America’s largest shale patch. Analysts speculate that additional output of 500,000 barrels of oil daily would become a significant part (4%) of overall U.S. daily production. That is going to flatter oil and gasoline prices. Drilling permits in the Permian Basin are persistently growing, averaging approximately 210 at the beginning of April. Moreover, the permits trend is noticed as an all-time high as a total of 904 horizontal drilling permits were awarded last month. Nowadays, learning and analysing the current situation and predicting the future development become easier with early activity tracking, a new service recently launched by Rextag. Rextag's Pad Activity monitor (PAM) allows you to see well pad clearing, drilling operations, fracking crew deployment and completions with new data collected approximately every 2 days with the help of satellite imagery and artificial intelligence. While the increase in drilling will result in higher production, U.S. shale producers will have to overcome several hurdles including labor shortages and supply constraints.

2022 blog posts