Permian Basin Becomes Largest Producing Oil Field

May 23, 2019

 

By Alex Mills

 

Crude oil and natural gas production in the U.S. set records in 2018 and Texas and the Permian Basin of West Texas led the way. As a matter of fact, the Permian Basin became the largest producing oil field in the world in April surging past Saudi Arabia’s Ghawar. The Energy Information Administration reports oil production in the Permian Basin at 4.2 million barrels per day in April compared to 3.8 for Ghawar.

The United States Geological Survey reported recently an increase in technically recoverable resources in the Permian of 46.3 billion barrels of oil, 281 trillion cubic feet of natural gas, and 19.9 billion barrels of natural gas liquids (NGL).

However, all of this added production has created an oversupply in the Permian Basin because the current transportation system can’t move all of the product to processing points.

The downstream portion of the industry plans to spend an average of $13 billion a year on transmission pipelines through 2035 and another $7 billion on processing infrastructure.

The current oversupply, however, has caused prices to decline, which has become known as the Midland discount and reached as much as $18 per barrel less than West Texas Intermediate in 2018.

Natural gas prices suffered, too. Prices at the Waha gas hub in West Texas closed as low as $0.455 per million Btu, about $4 less than gas traded at Henry Hub in Louisiana in 2018. In February, prices fell even further to just $0.085 in spot trading meaning that some producers actually had to pay to market their gas.

Relief will take time. Kinder Morgan plans to have a gas pipeline completed this fall which will move about 2 billion cubic feet of gas per day from the Permian Basin to the Agua Dulce, Tx area. Another pipeline is scheduled for completion in 2020 taking gas from Waha to the Texas Gulf Coast.

Similar take-away capacity expansions are under way for crude oil and natural gas liquids (NGL) with new facilities being finished later this year and the first half of 2020.

Factionators, which are used in the NGL process, take an extensive amount of time to build and has slowed the transmission of NGL to the Gulf Coast….
 

Republican Trailblazer Rep. Tom Craddick and Wife Nadine Honored by Texas House

May 23, 2019

 

With their 50th wedding anniversary on the horizon, members of the Texas House of Representatives on Thursday honored long-serving state Rep. Tom Craddick and his wife Nadine, who stood with grandchildren while House Continuing Resolution 180 was read by Sen. Tan Parker on the floor of the Senate floor.

Senators then offered from the floor their memories of time spent with Rep. Craddick over the years.

The resolution:

 

WHEREAS, September 6, 2019, marks the 50th wedding anniversary of Representative Tom Craddick and Nadine Craddick, and this joyous event provides a fitting opportunity to reflect on their remarkable journey together as husband and wife; and

WHEREAS, Tom Craddick and the former Nadine Nayfa met in the library at Texas Tech University, where they both were students; Tom earned his bachelor ’s degree in business and his MBA from Texas Tech, and Nadine completed her bachelor ’s degree in education at the university; in 1969, Nadine began teaching while Tom began his first term in the Texas House, and as the pair looked forward to their September wedding date, they found that the obligations of the Texas Legislature can interfere with the best-laid plans; the governor called two consecutive special sessions that summer, the second of which didn ’t end until three days after their wedding date, and although the ceremony proceeded, their honeymoon was delayed; so began their rewarding marriage, and in the years that followed, the Craddicks welcomed the arrival of two children, Christi and Thomas, while working tirelessly together in behalf of their community and the Lone Star State; and…
 

Texas Legislature Honors Dallas Wind Energy Pioneer Tri Global Energy: News Release

May 23, 2019

 

The Texas 86th Legislature has passed Bill TX HR1069, officially recognizing Tri Global Energy, the Dallas-based company that has become a national leader in the development of clean, renewable wind energy. Tri Global Energy is celebrating its 10thanniversary in 2019, and in that time, the company has grown to become the fourth largest developer of utility-scale wind projects in the U.S.

Tri Global Energy (TGE) also has ranked consistently as the top developer of wind power in Texas and in 2018, achieved company records for projects beginning construction (1,000 MW) and projects achieving commercial operations (over 228 MW). Texas is the number one wind energy generator in the country, producing one-quarter of the national total and nearly 17% percent of all in-state electricity generation. If Texas were a country, it would rank number four in the world in total wind energy generation….
 

Postcards from the Lege: What’s In a Name?

May 22, 2019

 

In the rush of the business day, haven’t most people accidentally called someone by the wrong name?

And on some of those occasions hasn’t it been awkward when the two names confused turned out to be people who looked alike, or both were recent hires or both similar in some way?

Or like, both were of the more outspoken conservative political persuasion?

Name confusion caused a particularly awkward moment on the floor of the Texas House on Wednesday, however, when Rep. Joe Moody, standing in for Speaker of the House Dennis Bonnen during the naming of one bill’s conferees, called on state Rep. Briscoe Cain by saying, “Mr. Stickland for what purpose?”

Rep. Cain exclaimed, “Wow, that’s…pretty painful.”

“I’m sorry, Mr. Cain, for what purpose?”

Rep. Cain bit his lower lip and looked at the House while laughter filled the room for a moment, then smiled and conjured more laughter by deadpanning, “Is there any way Mr. Speaker, Mr. Bonnen, Speaker Bonnen, is there any way to change the names of the conferees?”

 

For those who don’t get the humor, it’s a “looks” thing, though both are notably right of center.

Rep. Cain is not tall and is clean-shaven.

Rep. Stickland is tall and, well, resembles Rep. John Bucy III.

 

— Mike Shiloh