Drilling a well in any oil formation actually produces three things: Oil, natural gas (and associated liquids), and water. All of it must go somewhere on its way to processing, disposal, or reuse. As those ratios change, apportioning the midstream capacity can be a moving target, especially when those investment decisions and construction windows involve […]
To Go with the Flow
As usual, the oil industry has seemed to turn on a dime. Two years ago producers were filling swimming pools with excess oil because it was a commodity nobody wanted during the Pandemic. In 2022, it’s still a commodity that certain groups don’t want, but they have to admit they need it. That’s due to […]
Water Midstream Enters a New Phase
“The sub-industry of water handling and water midstream has evolved pretty dramatically over the last three or four years,” said Bill Zartler, CEO of Solaris Midstream Holdings. Solaris designs, owns, and operates water midstream systems in the Permian Basin. Solaris itself has grown exponentially since starting from scratch in 2016. They bought a small company […]
The Ones in the Middle
With the slowdown in drilling due to several issues, including quarantines related to the coronavirus, combined with frantic construction of pipelines over the last four years, pipeline shortages may soon be over. A trade agreement with China, which had promised to jumpstart petroleum exports to that country, has been dampened by that same virus due […]
Midstream’s Shifting Course
For the first 150 years of the oil industry, rig counts were a strong predictor of imminent production levels and, hence, midstream takeaway capacity needs. One rig punched one hole. The resulting production would immediately flow into a pipeline. Over the last decade, however, multiple horizontals, multipad drilling, and other outgrowths of the frac revolution […]
Midstream: in Charts and in Images
The year 2019 will be remembered as Midstream’s Year. As we near year-end in what might be the most eventful year ever in Permian midstream activity, we look at two kinds of snapshots. One, some recent graphics highlighting the impact of a record amount of completed pipeline construction. And two, some literal snapshots—high resolution images […]
Getting the Resources Gone
Takeaway is what the midstream sector is all about. Getting the crude oil, natural gas, and natural gas liquids away from the wellheads and on their way to the processing plants. Sounds simple, but it’s a world unto itself, and it’s a world that’s undergoing dramatic change. by Jesse Mullins The upstream sector has its […]