DALLAS—CEO Tony Sanchez unabashedly admits the good and bad of Sanchez Energy Corp.’s (NYSE: SN) deal history—the luck, the mistakes and the audacity of assets bought, sold or overlooked.

 

The Houston-based company has taken risks while making a point to avoid a cash flow catastrophe by acquiring assets that immediately make money.

 

“We like to buy assets that we can protect our downside, and that comes in the form of a lot of producing wells with stable production cash flow, to underpin our analysis,” Sanchez told an audience at Oil and Gas Investor’s A&D Strategies and Opportunities conference.

“So, if we are wrong, we have production to back us up.”

 

In contrast, the rash of Permian Basin deals that have commanded the oil industry’s attention has been acquisitions for undeveloped acreage. Only some included production of more than 10,000 barrels of oil equivalent per day (boe/d), according to Moody’s Investors Service.

 

Source: Daily Dose of ShaleDirectories.com News

https://www.shaledirectories.com/blog/ceo-tony-sanchezs-aampampd-strategy-go-with-the-cash-flow/

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HOUSTON—Differing cost structures between the U.S. and OPEC oil markets have been significant in causing the two to move in opposing paths, according to Ashley Petersen, senior oil market analysts at Stratas Advisors, who spoke with Hart Energy following the recent “The Bull Returns – Where Do Oil Markets Go From Here?” webinar.

Petersen added that while U.S. producers are basically producing at will OPEC has stuck to following its supply deal. Despite U.S. producers having fewer export constraints now, she said, exporting crude will eventually be more challenging and expensive for the U.S. than for OPEC.

Cost constraints, including the rising costs for fracturing crews, sand, fluids and rigs, are problems the U.S. market faces due to producers primary use of large-scale hydraulic fracturing, Petersen said.

Source: Daily Dose of ShaleDirectories.com News

https://www.shaledirectories.com/blog/opec-us-oil-markets-at-odds/

Saudi Aramco is considering shelving plans for an international public offering in favor of a private share sale to the world’s biggest sovereign wealth funds and institutional investors.

Talks about a private sale to foreign governments—including China—and other investors have gathered pace in recent weeks, according to five people familiar with the IPO preparations, amid growing concerns about the feasibility of an international listing.

The Saudi state oil company has struggled to select a suitable international venue for its shares, as New York and London have vied for what has been billed as the largest ever flotation.

Source: Daily Dose of ShaleDirectories.com News

https://www.shaledirectories.com/blog/saudi-aramco-considers-shelving-international-ipo/

DALLAS–Oil prices likely have two strong quarters ahead but, like natural gas, crude is essentially range-bound in the near term, Anthony Yuen, global energy strategist for Citigroup, said Oct. 12 at Oil and Gas Investor’s A&D Strategies & Opportunities Conference.

Citigroup forecast fourth-quarter 2017 Brent prices at $58 per barrel (bbl) and West Texas Intermediate (WTI) at $54—a divide that U.S.-based E&Ps have previously taken advantage of in the global export market. After that, prices will decline, Yuen said.

Additionally, NGL prices will continue to fluctuate greatly due to the tug-of-war between supply and demand, he said.

“NGL is something that we like a lot, but it is a market where you cannot control your own destiny,” he said. NGL pricing varies greatly because they’re dependent on oil and gas fundamentals for supply and while Asian and European fundamentals govern demand.

“It’s not really controlled in the U.S.,” he said. “So that’s why we see a lot of volatility and also how we’ve seen propane prices really shoot up 30% or more in just two months.”

Source: Daily Dose of ShaleDirectories.com News

https://www.shaledirectories.com/blog/aampampd-conference-oil-stuck-in-a-rut-but-shale-poised-to-lead/

JKE1-300x108.jpg

A Creative Approach to Reclaiming Abandoned Strip Mines

Executive Summary

Engineers are often tasked with solving difficult problems with limited time and budgets. This technical brief provides an overview of how a team of engineers collaborated to find the optimum solution to reclaim and compact the soils of a strip mining site for re-use as in developing a new gas processing  plant in Eastern Ohio. The engineers performed environmental and geotechnical studies and considered the client’s future needs in developing a unique site preparation process to treat the deep mining spoils that were unsuitable for construction. The evaluation process, the alternatives considered, and the final solution are discussed.

Background

JKE2.jpgThe EPA estimates that more than 500,000 abandoned mine sites are located throughout the United States. Redevelopment provides an opportunity to turn these sites into beneficial uses. The abandoned strip mining sites in north eastern United States can be good locations for large industrial such as natural gas processing plants, storage yards and warehouse or distribution projects. The environmental impact of developing these sites is minimal as they have already been impacted by the strip mining operations.

Site development challenges in reclaimed strip mines include:

  • Uncontrolled strip mine spoils up to 100 feet deep that prohibit the use of traditional building and pad foundations
  • Mine fill laden with boulders which presented another unique set of problems
  • Compressed construction schedules to meet client needs and weather windows.
  • Variable facility requirements for different areas of the site development; foundations, vehicular traffic, parking, storage and support services

In addition to the physical site challenges, energy companies often face an extremely competitive market where speed-to-market and timing are critical to financial success. This speed-to-market often leads to the design and build schedules overlapping which further complicate the site development by requiring the site development team to be flexible and adjust to changing designs concurrently with site development activities.

Solution Requirements

The primary geotechnical objective was to develop a solution that mitigated settlement risk to the proposed structures but the site solution also required the following critically important considerations:

  1. Flexibility for unknown subsurface conditions
  2. Overlapping design and site preparation schedules
  3. Flexibility for modifying the plant layout
  4. Risk and dependability of the foundation system
  5. Cost parameters

Due to the fast-track nature of the project, the Joe Knows Energy team was working only with a general plant layout which could and did change during mass grading and site preparation.

Design Process

The Joe Knows Energy design team consisted of civil, geotechnical and environmental engineers, contractors and site developers working collaboratively to develop a strategic approach to address the physical site conditions, an aggressive construction schedule and design requirements that were yet to be defined.

Members of the Joe Knows Energy design team were selected based on previous experiences working together. Team members had demonstrated a high level of trust in one another, an affinity for working collaboratively, the ability to provide continuous communication on their respective responsibilities and a willingness to provide direct and timely feedback to teammates.

This collaborative and coordinated approach resulted in measurable benefits to the project including:

  • Costly mistakes were avoided
  • Demonstration foundation alternative tested on-site
  • Sequencing work to accommodate concurrent design and construction
  • Adjusting the design as more factors became known

The design solution to strengthen the existing loose mining fills was developed in the following stages:

  1. Site research and preliminary borings
  2. Clarification of design requirements and decision factors
  3. Geotechnical evaluation, cost comparisons and schedule assessment
  4. Solution selection
  5. Review of outcomes and results

Summary

The Joe Knows Energy design team working collaboratively with the client to produce significant and measurable benefits including:

  • Selection of Deep Dynamic Compaction as the most viable and cost-effective method to address redevelopment of abandoned strip mine sites
  • Specifically focused on ensure that provides proper site preparation and structure support was created that met the clients facility needs
  • Adjustments in the site elevation and plant footprint occurred without disruption to the design process and allowed the elevation of the site to achieve dirt balance while considering a larger plant footprint and the shrinkage of soil due to DDC operations
  • Site redevelopment occurred within 14 weeks while design of the facility was being completed
  • JKE3.jpgMany design changes occurred but costly mistakes such as performing foundation preparation in areas that ultimately did not need it were avoided due to the team’s continuous communication
  • The project team sharing progress and design direction on a frequent basis which allowed for some areas of the site preparation work to be delayed while the impact of design alternatives were more thoroughly considered
  • Alternative design solutions in the tower/vertical constructionareas and other deep foundations included excavating to the depths of the foundations and
    performing the deep dynamic compaction at those elevations.

About Joe Knows Energy

America has been given a great gift; the natural resources to provide the fuel for its growth with the Oil and Gas Utica Shale Play in Ohio. Joe Knows Energy wants to help America “Do it Right”!  Joe Knows Energy is passionate about Building America’s Future by helping Oil and Gas Companies with needs associated with Project Management, Logistics, Applied Technologies, and more.

We help the Energy Industry harvest this God given gift by providing Infrastructure and Site Solutions and doing it the right way! Over the past year our “Team of Joe’s” has helped industry mitigate its top concerns and fears:

  • Accidents- Safety has to be #1 to make sure everyone gets home safe every night!
  • Delays- Regulations need to be managed
  • Surprises- Resources need to be available

At Joe Knows Energy we believe it starts with Leadership that is focused all on doing it the right way. Followed closely by having the right team of hard working “Joes” that are easy to work with, knowledgeable, and solution oriented. Resulting in a team that is Safe, Responsive, Scalable and Easy to Use which ultimately drives positive financial impacts for everyone involved

Joe Knows Energy might not be a fit for everyone; but for those who we do fit – We would Love to Help You Build Yours’ and America’s Future!  Joe Knows Energy provides comprehensive infrastructure and site solutions, project management, logistics and applied technologies for oil and gas energy companies throughout the Midwest.

http://208.73.48.94/blog/?p=278