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Released February 01, 2019 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--The U.S. is now the world's largest producer of oil, and ConocoPhillips (NYSE:COP) (Houston, Texas) is taking full advantage of the moment by stressing its domestic shale production. The oil and gas giant also is looking to the future by continuing to develop export facilities for liquefied natural gas (LNG). Industrial Info is tracking more than $52 billion in active ConocoPhillips projects globally, including more than $16 billion worth under construction in the U.S.
ConocoPhillips is setting its 2019 capital-expenditure budget at $6.1 billion, with full-year production projected at between 1.3 and 1.35 million barrels of oil-equivalent per day. Capital expenditures and investments totaled $6.75 billion in 2018, compared with $4.6 billion in 2017. In both years, spending in the "Lower 48" states accounted for nearly half of the total.
The energy giant's largest project under construction is a key driver of one of the most promising trends in U.S. exports: LNG. The U.S. Energy Information Administration (EIA) expects domestic LNG export capacity will hit 8.9 billion cubic feet per day by the end of 2019, making the U.S. the third-largest LNG exporter in the world, behind Australia and Qatar. ConocoPhillips' Freeport LNG Liquefaction and Export Plant in Quintana, Texas, is expected to be operational later this year.
The sprawling complex has three trains under construction, each of which will produce 5 million tons per year of LNG from 730 million standard cubic feet per day of natural gas, sourced from the Eagle Ford Shale. Tolling agreements have been signed with Osaka Gas and Chubu Electric for the $5.5 billion first train; BP plc (NYSE:BP) (London, England) for the $5.5 billion second train; and Toshiba Corporation (Tokyo, Japan) and SK E&S (Seoul, South Korea) for the $4.5 billion third train. The first train is expected to begin commercial production in the third quarter, with the next two online in 2020.
ConocoPhillips also is at work on a $200 million natural gas pretreatment plant, which will supply the LNG complex with 2.2 billion cubic feet per day of natural gas via pipeline, and a $90 million natural gas-fired unit addition, which will use a simple-cycle turbine to provide the complex with 87 megawatts (MW) of power. For more information, see Industrial Info's project reports on trains I, II and III, and the pretreatment plant and natural gas-fired unit addition.
Click on the image at right for a graph from the U.S. Energy Information Administration detailing how Freeport's export capacity compares with other planned or active domestic LNG facilities.
The company's increased investment in the Lower 48 paid off, with production from the its high-margin "Big Three" unconventionals (the Eagle Ford Shale and Delaware Basin in Texas, and the Bakken Shale in North Dakota and Montana) reaching 335 million barrels of oil-equivalent per day. Outside the Lower 48, the company continued to discover resources in Alaska, where it acquired additional working interest in its legacy assets; it also increased its acreage in the liquids-rich Montney Shale in Canada. Much of ConocoPhillips' efforts in Alaska were concentrated on the North Slope, where it is at work on a $75 million crude oil-drilling program in the Alpine Field, near Nuiqsut. Eight new wells are being drilled in the area. For more information, see Industrial Info's project report.
ConocoPhillips also performed testing in Alaska's Kuparuk Cairn prospect, where it is performing $10 million in maintenance at its oil-processing facility near Prudhoe Bay. The planned, 50-day program includes vessel inspections and repairs to the 50,000-BBL/d processing plant. For more information, see Industrial Info's project report.
ConocoPhillips also agreed to sell off its properties in Texas' Barnett Shale, along with other non-core assets, in 2019. Lime Rock Resources purchased the Barnett assets for about $230 million.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
ConocoPhillips is setting its 2019 capital-expenditure budget at $6.1 billion, with full-year production projected at between 1.3 and 1.35 million barrels of oil-equivalent per day. Capital expenditures and investments totaled $6.75 billion in 2018, compared with $4.6 billion in 2017. In both years, spending in the "Lower 48" states accounted for nearly half of the total.
The energy giant's largest project under construction is a key driver of one of the most promising trends in U.S. exports: LNG. The U.S. Energy Information Administration (EIA) expects domestic LNG export capacity will hit 8.9 billion cubic feet per day by the end of 2019, making the U.S. the third-largest LNG exporter in the world, behind Australia and Qatar. ConocoPhillips' Freeport LNG Liquefaction and Export Plant in Quintana, Texas, is expected to be operational later this year.
The sprawling complex has three trains under construction, each of which will produce 5 million tons per year of LNG from 730 million standard cubic feet per day of natural gas, sourced from the Eagle Ford Shale. Tolling agreements have been signed with Osaka Gas and Chubu Electric for the $5.5 billion first train; BP plc (NYSE:BP) (London, England) for the $5.5 billion second train; and Toshiba Corporation (Tokyo, Japan) and SK E&S (Seoul, South Korea) for the $4.5 billion third train. The first train is expected to begin commercial production in the third quarter, with the next two online in 2020.
ConocoPhillips also is at work on a $200 million natural gas pretreatment plant, which will supply the LNG complex with 2.2 billion cubic feet per day of natural gas via pipeline, and a $90 million natural gas-fired unit addition, which will use a simple-cycle turbine to provide the complex with 87 megawatts (MW) of power. For more information, see Industrial Info's project reports on trains I, II and III, and the pretreatment plant and natural gas-fired unit addition.
Click on the image at right for a graph from the U.S. Energy Information Administration detailing how Freeport's export capacity compares with other planned or active domestic LNG facilities.The company's increased investment in the Lower 48 paid off, with production from the its high-margin "Big Three" unconventionals (the Eagle Ford Shale and Delaware Basin in Texas, and the Bakken Shale in North Dakota and Montana) reaching 335 million barrels of oil-equivalent per day. Outside the Lower 48, the company continued to discover resources in Alaska, where it acquired additional working interest in its legacy assets; it also increased its acreage in the liquids-rich Montney Shale in Canada. Much of ConocoPhillips' efforts in Alaska were concentrated on the North Slope, where it is at work on a $75 million crude oil-drilling program in the Alpine Field, near Nuiqsut. Eight new wells are being drilled in the area. For more information, see Industrial Info's project report.
ConocoPhillips also performed testing in Alaska's Kuparuk Cairn prospect, where it is performing $10 million in maintenance at its oil-processing facility near Prudhoe Bay. The planned, 50-day program includes vessel inspections and repairs to the 50,000-BBL/d processing plant. For more information, see Industrial Info's project report.
ConocoPhillips also agreed to sell off its properties in Texas' Barnett Shale, along with other non-core assets, in 2019. Lime Rock Resources purchased the Barnett assets for about $230 million.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
