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Researched by Industrial Info Resources (Sugar Land, Texas)--Devon Energy Corporation (NYSE:DVN) (Oklahoma City, Oklahoma) is riding the wave of growth in the natural gas liquids (NGL) market and improved pricing in the oil market. The company recently resumed full-scale operations at a major complex in Canada's oil sands region, and estimates net third-quarter production in the U.S. will be a higher-than-expected 418,000 barrels of oil equivalent per day--driven by higher NGL yields and recoveries. Industrial Info is tracking $5.75 billion in active projects involving Devon.
Click on the image at right for a graph detailing active Devon projects, by industrial sector.
Devon attributed its stronger NGL results from access to premium pricing in the Mont Belvieu market on the Texas Gulf Coast. Earlier this year, the company announced it had secured firm transportation on Magellan Midstream Partners LP's (NYSE:MMP) (Tulsa, Oklahoma) Longhorn Pipeline to transport oil to the Mont Belvieu area from the Permian Basin, where it reported strong product pricing.
In the Delaware Basin, one of the most prosperous regions of the Permian, Devon is wrapping up the construction of its $150 million expansion of the Ajax Cryogenic Natural Gas Processing Complex in Metone, Texas, which involves adding a 200 million-standard-cubic-foot-per-day processing unit, bringing total processing capacity at the facility of 370 million standard cubic feet per day. For more information, see Industrial Info's project report.
In the neighboring Midland Basin, also part of the Permian, Devon is considering a proposed, $100 million expansion of its Riptide Cryogenic Natural Gas Processing Plant near Tarzan, Texas, which would add a second train and double processing capacity at the facility to 200 million standard cubic feet per day. For more information, see Industrial Info's project report.
Devon also reported strong product pricing from Oklahoma's STACK play, where the company has secured firm transportation to the Gulf Coast via TransCanada Corporation's (NYSE:TRP) (Calgary, Alberta) Marketlink Pipeline. Devon is constructing the $300 million Thunderbird Cryogenic Natural Gas Plant in Kingfisher, Oklahoma, which would process 200 million standard cubic feet per day from the STACK. For more information, see Industrial Info's project report.
"We have arrangements in the Delaware Basin for those that have firm transportation to the West Coast for the vast majority of our gas," said David Hager, the chief executive officer of Devon, in a presentation last month at the Barclays CEO Energy-Power Conference. "And so we have no issues as far as flow assurance on the gas side, and the same thing on the gas side in the STACK play."
The Midland and STACK projects are being developed with EnLink Midstream. Devon recently sold off its own stake in EnLink to Global Infrastructure Partners (New York City, New York), but it continues to work with EnLink in the Delaware Basin and STACK play, as well as the Barnett Shale and other locations.
Jackfish Heavy Oil Project Returns to Full Operations
Devon announced this week that it had completed additional facility work at its Jackfish 1 heavy oil project in Alberta, which involved repairs that were deemed necessary during recent turnaround activities. With production no longer curtailed, Devon estimates that its third-quarter net output in Canada will be about 104,000 barrels of oil equivalent per day; fourth-quarter net production in Canada is expected to average between 115,000 and 120,000 barrels of oil equivalent per day.
Devon's Canadian subsidiary is looking at a pair of proposed projects related to the Jackfish complex: an estimated $750 million bitumen production field and processing plant in Lac La Biche, Alberta, which would produce at least 25,000 barrels per day (BBL/d) from oil sands deposits utilizing Steam-Assisted Gravity Drainage (SAGD) technology, and an estimated $35 million worth of additional production wells in Conklin, Alberta, at an existing bitumen production field and processing plant with a capacity of 105,000 BBL/d. For more information, see Industrial Info's reports on the proposed plant and production wells.
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/.
Click on the image at right for a graph detailing active Devon projects, by industrial sector.Devon attributed its stronger NGL results from access to premium pricing in the Mont Belvieu market on the Texas Gulf Coast. Earlier this year, the company announced it had secured firm transportation on Magellan Midstream Partners LP's (NYSE:MMP) (Tulsa, Oklahoma) Longhorn Pipeline to transport oil to the Mont Belvieu area from the Permian Basin, where it reported strong product pricing.
In the Delaware Basin, one of the most prosperous regions of the Permian, Devon is wrapping up the construction of its $150 million expansion of the Ajax Cryogenic Natural Gas Processing Complex in Metone, Texas, which involves adding a 200 million-standard-cubic-foot-per-day processing unit, bringing total processing capacity at the facility of 370 million standard cubic feet per day. For more information, see Industrial Info's project report.
In the neighboring Midland Basin, also part of the Permian, Devon is considering a proposed, $100 million expansion of its Riptide Cryogenic Natural Gas Processing Plant near Tarzan, Texas, which would add a second train and double processing capacity at the facility to 200 million standard cubic feet per day. For more information, see Industrial Info's project report.
Devon also reported strong product pricing from Oklahoma's STACK play, where the company has secured firm transportation to the Gulf Coast via TransCanada Corporation's (NYSE:TRP) (Calgary, Alberta) Marketlink Pipeline. Devon is constructing the $300 million Thunderbird Cryogenic Natural Gas Plant in Kingfisher, Oklahoma, which would process 200 million standard cubic feet per day from the STACK. For more information, see Industrial Info's project report.
"We have arrangements in the Delaware Basin for those that have firm transportation to the West Coast for the vast majority of our gas," said David Hager, the chief executive officer of Devon, in a presentation last month at the Barclays CEO Energy-Power Conference. "And so we have no issues as far as flow assurance on the gas side, and the same thing on the gas side in the STACK play."
The Midland and STACK projects are being developed with EnLink Midstream. Devon recently sold off its own stake in EnLink to Global Infrastructure Partners (New York City, New York), but it continues to work with EnLink in the Delaware Basin and STACK play, as well as the Barnett Shale and other locations.
Jackfish Heavy Oil Project Returns to Full Operations
Devon announced this week that it had completed additional facility work at its Jackfish 1 heavy oil project in Alberta, which involved repairs that were deemed necessary during recent turnaround activities. With production no longer curtailed, Devon estimates that its third-quarter net output in Canada will be about 104,000 barrels of oil equivalent per day; fourth-quarter net production in Canada is expected to average between 115,000 and 120,000 barrels of oil equivalent per day.
Devon's Canadian subsidiary is looking at a pair of proposed projects related to the Jackfish complex: an estimated $750 million bitumen production field and processing plant in Lac La Biche, Alberta, which would produce at least 25,000 barrels per day (BBL/d) from oil sands deposits utilizing Steam-Assisted Gravity Drainage (SAGD) technology, and an estimated $35 million worth of additional production wells in Conklin, Alberta, at an existing bitumen production field and processing plant with a capacity of 105,000 BBL/d. For more information, see Industrial Info's reports on the proposed plant and production wells.
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/.
