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Renewable Energy From Concho Valley Will Power Targa’s Permian Natural Gas Plant

Concho Valley Solar LLC, a joint venture between Merit SI and Komipo America, Inc., has signed agreements with Targa Resources Corp. to supply low-cost renewable electricity to Targa's natural gas processing infrastructure in West Texas' Permian Basin as of this month. Through this long-term power purchase agreement (PPA), Concho Valley Solar will deliver low-cost, renewable electricity to Targa to support the company's efforts to reduce greenhouse gas emissions.

In North America, Targa Resources Corp. is a leading provider of midstream services. Through its assets, the company provides access to natural gas and natural gas liquids (NGLs) for domestic and international markets with a growing demand for cleaner fuels.

Merit SI is fully focused on maximizing the cost-effectiveness of solar production by providing design/build services and energy asset agreements that require zero capital investment. With years of experience in the power industry, Merit Controls offers advanced, proven grid integration solutions for large-scale commercial, industrial, and utility power grids.

The foundation of Komipo America, Inc. is based on its world-class power plant construction and operation technology, focusing on the production of high quality, stable power through thermal power, wind power, solar power, and fuel cell power.

As for this specific venture, a 160 MWac solar project near San Angelo in Tom Green County, Texas has already gone under construction since the beginning of the quarter, and it is expected to start delivering clean, renewable energy in exactly a year from now, in the fourth quarter of 2022, given nothing unforeseen happens. The project will use high-efficiency bifacial solar photovoltaic (PV) modules to produce clean energy while minimizing effects on wildlife, habitat, and other ecosystem resources.

Additionally, due to Pioneer Natural Resources ownership of part of Targa's Midland Basin gas processing infrastructure, it will also benefit from installing renewable electricity generated through the Concho Valley Solar project, increasing its emissions reduction efforts through renewable energy purchases.

In supporting this project and exploring future joint opportunities, Pioneer and Targa are demonstrating their commitment to leading the way in reducing emissions throughout the Midland Basin.

Concho’s project also boasts some other lucrative benefits: by providing reliability services to the grid through an advanced power plant control platform, the project will be able to generate incremental revenue from intermittent renewable power plants. While construction of the facility itself is expected to generate approximately 150 jobs, allowing Tom Green County taxing entities to see increased revenues over the project's lifetime.

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Staying on Top of Drilling Activity Trends in the Permian Basin

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.

We think these GIS-related news will be important for the industry in the near future

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.

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