Timothy S. Duncan

The upstream in the US has been focused on unconventional resources for over a decade, awash with capital for new entrants and existing incumbents creating an environment where competition bids up prices and lowers returns. The offshore and international segments offer bigger alpha to those with the risk appetite and the experienced staff to safely navigate those risks. #energy #oil #onshore #offshore #unconventional #international #exploration #alpha https://lnkd.in/gNW-PDjW

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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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Energy Transfer’s plan to buy WTG Midstream, a West Texas-based and private equity-backed natural gas gatherer and processor, just got a bit less expensive — and not quite so comprehensive. Energy Transfer will still acquire WTG’s network of more than 6,000 miles of gas pipelines, eight processing plants and more, but WTG’s 20% stake in the joint-venture (JV) BANGL pipeline system is no longer part of the deal. In today’s blog, we’ll take a look at the detour from the original transaction. https://lnkd.in/gQxanMKr

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🎙️ Excited to share that I recently joined Grayson Brulte on The Road to Autonomy® podcast! We had an insightful discussion about key political and economic events impacting the oil markets, including the upcoming U.S. Presidential election, FED rate decisions, and geopolitical factors. We also delved into Texas' significant contribution to oil production and exports, the global demand for oil and natural gas, and the economic impact on Texas' economy. Tune in to hear our thoughts on how these factors could affect consumers and shape the future of the oil and gas industry! #RoadToAutonomy #OilAndGas #Economy #Podcast #EnergyMarkets #Texas #OilProduction #TXOGA

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Operators are looking for alternatives to routine flaring to deal with associated gas. But how do you pick from the many technology options available? 👉 Through rigorous techno-economic analysis with thermodynamics baked in.   My colleagues Glen Hay and Drew Pomerantz, together with Kit Pfeiffer at XCL Resources, have just presented their paper on flared gas monetization analysis.   They tested our methodology to assess gas-to-value options for specific sites in the Uintah basin.   The goal: find the solution that reduces the most emissions and creates the highest revenue, based on a raft of site-specific factors from gas composition to grid access.   Check out the article here: https://lnkd.in/eTwYMU5e   Or connect with me to find out more.   #Gas2Value #Methane #Thermodynamics

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Too many equipment providers are chasing too few E&P customers. Without consolidation within service or equipment providers, it will be a race to the bottom for pricing," an industry executive told the Dallas Fed Energy Survey. Meanwhile, the space for cost cuts will begin to shrink. According to Wood Mac, this year's 10% improvement in shale costs will slow down to just 1% next year as oilfield service providers reach the end of their discount tether. "With stronger balance sheets, anticipated increases in activity levels, and high demand for their most efficient equipment, they will feel less need to concede," Wood Mac analysts wrote.

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Devon Makes Apple Pie As the 1Q oil and gas earnings season winds down, Reese Energy Consulting today polishes off our LI week with a spotlight on Devon Energy. Among its peers, this multi-basin, Okla. City-based E&P hit the ball out of the park in 1Q reporting $1.7 billion in operating cash flow following a previous slam dunk in 4Q 2023. Devon CEO Rick Muncrief was heard to say, “How ya like them apples?” Back in the fall, as megamerger mania descended upon the nation’s larger independent players looking to grow their positions and inventory, Devon was rumored to have an eye on Marathon Oil Corporation and CrownRock in the Permian, and Enerplus in the Bakken. The company operates 400,000 net acres in the Delaware with more than 10 years of inventory, and 123,000 net acres in the Williston, along with assets in the Anadarko, Powder River, and Eagle Ford. While a deal never came to fruition, Muncrief made clear he was in no rush to jump into the land-grab frenzy. As the saying goes, patience is bitter, but its fruit is sweet. And although not an acquisition, Devon’s sweetest fruit was already on the verge of bigtime production. Devon’s largest revenue driver lies in the Permian to the tune of 66%--and that’s where a near equal percentage of its CAPEX will be headed this year. With tighter-than-spandex drilling efficiencies, strategic midstream investments, and higher output in the Delaware—apples, if you will—Devon in 1Q made a deep-dish apple pie despite natural gas prices. The company reported 664 MBOED in total production, beating its own estimate by 4% and welcomed in a handsome $844 million in free cash flow. At the same time, Devon also raised its 2Q production targets to a range of 655 MBOED to 675 MBOED, as well as higher guidance expectations for the full year. What do you think? Learn more about REC and our crude oil and natural gas consulting services at https://lnkd.in/ebXT2mS. #okc #energy #oilandgas #mergers ##reeseenergyconsulting

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The Enron Saga – a company that revolutionised trading and the energy market. A story of ethics. Enron was a result of a merger between two companies, Houston Natural Gas Corporation and InterNorth Inc with Kenneth Lay from Houston Natural Gas remaining the CEO of the combined entity. It went from a decade, year-on-year growth in value with a market capitalisation of $60 billion to going bankrupt in less than a month. 🚩 In 1990, Ken hired Jeffery Skilling as CEO who introduced Mark-to-market accounting. Having an accounting background, it is cringing to hear the terms Fair Value and Mark-to-market accounting used interchangeably. For reference, fair value is the amount we pay in an orderly transaction while mark-to-market is the adjustment (or accounting event) we make to our book values (the balance sheet) to bring them to fair value which is almost always economic value. Because of the mark-to-market practice Enron adopted, the revenue growth recorded was extraordinary making the debt-to-equity ratio appealing and consequently a very attractive share price for investors. 📈 ….and as fate would have it, cracks started to appear. Bethany McLean, a reporter at Fortune Magazine had a phone call with Jeff asking him simple questions such as how does Enron make money? Jeff including his CFO- Andrew Fastow and team couldn’t give straightforward answers. Jeff resigned. A day after his resignation Sherron Watkins, an executive who worked under the CFO sent a letter to Ken who stepped up again as CEO detailing the staggering amount of corruption and fraud that she had found within the company. A legacy of courage. 🫡 So, who was accountable for Enron’s failure? Management and the External Auditors. The management team were prosecuted and the firm (Auditors) Arthur Andersen, America’s oldest accounting firm went out of business as public trust was eroded and over 29,000 people lost their jobs. The big five thus became the big four we know today. Life changing consequences Thousands of people lost their pensions and investors lost their money. Ken Lay - CEO faced 45 years in prison but died of a heart attack a month before his sentencing. Jeff Skilling was sentenced to 24 years (served 12) and $180 million in fines. While in Jail, his parents and son passed away. Andrew Fastow - CFO faced a 6-year prison sentence (served 5) and fines. Another Enron executive committed suicide after testifying in court. 20,000 Enron staff lost their jobs and medical insurance. The lessons 📝 Be guarded about something that rises too fast, it may just be a time bomb and always ask WHY, always ask HOW...always! 🧐 Great systems don’t prevent those motivated to enact crime. Would you be comfortable with your name being referenced as not having a moral campus? Are the aftermaths of immoral dealings truly worth it? ‘Good ethics is good business.’ 🤝 #EnergyMix #JustEnergyTransition #NaturalGas #ESG #Ethics #Enron Date: 20th September 2024.

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What impact has the IRA and IIJA had on U.S. energy policy? During the Baker Hughes Annual Meeting 2024, esteemed panelists Jack Fusco, Paul Marsden, Mike Sommers and moderator, Rita Lofana, addressed this important topic and debated the potential scale of impact of the IRA and IIJA on the development of new energies globally and addressed the implications of the Biden-Harris administration's decision to temporarily pause on pending approvals of LNG exports. Watch the highlights video below for key takeaways from this engaging discussion and visit the #BHAM2024 proceedings page for more great content: https://lnkd.in/gwV75Sty #EnergizingChange #BakerHughes #Energy #EnergyTechnology #EnergyTransition #Innovation #WeAreBakerHughes

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Thx to The Energy Council for organizing a day of interesting panel discussions. Arbo's Chip Moldenhauer led thought leaders from Morgan Stanley Energy Partners, Equinor, and Westlawn in a discussion of regulatory and policy threats to the industry's rights to operate. If we’re going to power up this country with a more reliable and cleaner energy grid, then we need to get back to building... which has been made increasingly difficult by permitting, policy and litigation landmines. 

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The median deal size in the Permian Basin skyrocketed to $4.5B, a 9.5x increase despite a 53% drop in transaction activity. Major deals like ExxonMobil's acquisition of Pioneer Resources are reshaping how the market does business. Discover how this may affect deals to come. https://lnkd.in/gTprgiCb | #energy #permianbasin #acquisitions #transaction

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Off the Beaten Path Following up on our post from Tuesday, Reese Energy Consulting today is following news from producers who are finding oil and gas magic on the fringes of core-basin plays. In an article earlier this month, Hart Energy featured Denver-based Bayswater Exploration and Production, which aside from its assets in the DJ and Powder River, also operates 48,000 acres in the Permian’s Northern Midland. Here, targeting the Wolfcamp and Spraberry, Bayswater is striking paydirt the farther east it explores. Call it extending the extensions. With a strategy to develop tier-2 acreage positions that could ultimately deliver tier-1 performance, the company first went to work in Howard County, Texas, near Mitchell County, where high levels of carbonates comprised of limestone and dolomite have tended to discourage drilling. Not so for Bayswater, which discovered a rich hydrocarbon environment in the carbonate/shale reservoir, completing its first well in 2021 with initial production of nearly 1.3 MBPD and cumulative production of 430+ Mbbls. Now three years later, Bayswater has moved farther east into Mitchell County, reporting even higher production and drilling six more 2.5-mile laterals with completions slated this summer. Speaking of step outs, gas producers Comstock Resources and Aethon Energy continue their “victory is mine” exploration and development of the Western Haynesville—an extension now aptly christened Waynesville. Aethon, whose newest well in Robertson County, Texas, produced nearly 3.3 BCF in the first four months of production last fall, can’t get enough of Wayne’s world and is now on the hunt for more. What do you think? Learn more about REC and our crude oil and natural gas consulting services in the Permian and Haynesville at https://lnkd.in/ebXT2mS. #energy #drilling #oilandgas #reeseenergyconsulting

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Importance of Skilled Labor to Critical Minerals Establishing a robust domestic midstream for critical minerals is important, and something I'm often asked about. Recently, I published a paper on the topic for the Bipartisan Policy Center (linked below). A key factor to overcome, and one of the most cited by project owners, is the significant recruiting and retaining challenges due to severe labor shortages and intense competition for skilled workers. The U.S. industrial manufacturing sector, which had a shortfall of over 600,000 workers in 2023, is expected to see this gap widen to 2.1 million positions by 2030. This shortage directly impacts critical minerals projects that rely on similar skill sets, exacerbating the pressure on the industry. Critical minerals projects compete with semiconductor and battery manufacturing companies for skilled positions such as machinists, electricians, maintenance staff, equipment operators, and construction workers. Additionally, there is a notable shortage of individuals qualified for specialized roles essential for operational efficiency and quality control, including chemists, quality control analysts, and laboratory technicians. The talent pool is further strained by a 39% decline in mining engineering graduates since 2016, limiting the availability of essential professionals like mining engineers, metallurgists, and geologists. The construction sector, vital for building and maintaining critical minerals processing facilities, is also experiencing a severe labor shortage, with a deficit of 650,000 workers as of July 2023. This shortage impacts infrastructure development in regions where midstream operations are necessary, often requiring significant relocation efforts. To address these challenges, strategic investments in training programs, relocation incentives, supportive immigration policies, and advanced manufacturing technologies are essential. By establishing industry-specific training initiatives and partnering with educational institutions, the sector can develop a pipeline of skilled labor but it will take time a forward-thinking. We must grow the potential pool of interested professionals, with efforts like Project MFG. The topic of skilled labor is one I intend to evaluate deeper to consider what must be done to establish these projects successfully while growing the quality of life for American workers. Link to my recent report: https://lnkd.in/gSy7WSau

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