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Oil and Gas Roundup — July 16

July 16, 2013
TOPICS: In the news

A roundup of oil and gas news from around the state, nation and world:

Murphy praises drilling companies for water


EDMOND — The issue of water will continue to grow within the oil and gas industry, said Dana Murphy, state corporation commissioner.


Oklahoma is experiencing a growing energy connection between the industries drilling for oil and natural gas, she said. Electricity is needed to drill oil and gas wells, Murphy said.


Today’s energy nexus is including the water cycle to a much greater extent, due to hydraulic fracturing, Murphy said.


“I think the issue of the industry finding better ways to recycle and use water in a more efficient way is becoming much more critical,” Murphy said.


Oklahoma had 644 horizontal wells drilled here in 2007, Murphy said. In 2012, there were 1,648 horizontal wells drilled in the state. In contrast, there were 3,600 vertical wells drilled, which in 2012 was reduced to 1,515 non-horizontal wells, she said.


“You’re talking about the water needed to actually drill a well — to then do the completion — then when you get to production to be able to dispose of it,” Murphy explained.


Read The Edmond Sun article:



Crude oil on rails is moving slower


SAN ANTONIO — Rail shipments of oil and petroleum products jumped 48 percent in the first half of 2013, but the pace of crude-by-rail growth is slowing, according to an analysis by the U.S. Energy Information Administration.


There are two reasons for this: A shortage of rail cars and rising prices for U.S. oil.

The agency estimates that 700,000 barrels of crude a day moves by rail in the United States now, and that the demand could accommodate 60,000 more tank cars than are available.


Rail shipments of crude have surged since 2010 as energy companies sought transportation for oil produced in remote new shale plays with little pipeline access.


A train that derailed July 6 in Canada while carrying 72 carloads of oil was moving crude from North Dakota's Bakken Shale region to a refinery in eastern Canada. The disaster caused large explosions that destroyed a portion of a small town in Quebec and killed at least 20 people with 30 still missing, according to the Associated Press.


Though pipeline companies have expanded service in the Bakken Shale, many energy companies are choosing to use rail due to lack of pipelines linking the Bakken with lucrative East Coast refineries.


And as more U.S. oil has moved east, it has competed more directly with foreign oil typically shipped to those facilities, which has been higher-priced. The price spread allowed U.S. producers to sell their oil at higher prices and still be competitive with the imports, pushing the price for domestic crude to within a few dollars of international prices.


Read more:



For oil and gas workers, Pa. hotels learning the drill


PITTSBURGH — To endear a hotel to the oil and gas crowd, give them a place to eat and sleep at all hours of the day, a place to wash their boots, a warm place to smoke in the winter, and a cold beer once in a while.


So goes the formula developed by Tejas Gosai, president of the Washington, Pa.-based Shale Hotel Inc. The company is managing two hotels geared toward oil and gas workers, building two others, and preparing to turn the Monroeville Holiday Inn into an industry destination for workers summoned by the Marcellus Shale boom.


Gosai represents a group of four doctors, among them his father, who bought the 187-room Monroeville hotel in June. His goal is to replicate his earlier experience and attract at least half the hotel's guests from the oil and gas fields.


These hotels weren't built for oil and gas workers but have slowly shifted in that direction. Consider the food, which seems never to stop.


Breakfast is served from 3 to 10:30 a.m. Guests rushing out the door to a job are given bags so they can toss in breakfast burritos and be on their way.


At 1 p.m., soup and popcorn start in the lobby. Two hours later, another breakfast shift begins. In the evenings, there are happy hours and wine, beer, and cheese receptions.


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