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Researched by Industrial Info Resources (Sugar Land, Texas)--The U.S. Southwest leads all other regions in Oil & Gas Production Industry kickoffs in the coming quarter, fueled by natural gas demand--as usual. But there's a new detail: Offshore drilling may be ready for a comeback, especially in the Gulf of Mexico. Industrial Info is tracking more than $9 billion in active Production projects that are set to begin construction in the U.S. Southwest region in the fourth quarter, of which about $5.5 billion worth are rated as having a high likelihood of kicking off as scheduled.
Click on the image at right for a graph detailing active projects in the Oil & Gas Production Industry in the U.S. Southwest, by industrial sector.
The Southwest region includes Arkansas, Louisiana, Oklahoma and Texas.
Natural gas processing plants account for the highest number of Production-related projects set to kick off in the fourth quarter, five of which are in Texas and are rated by Industrial Info is having an 81% to 99% chance of beginning construction as scheduled. Each is expected to process about 200 million standard cubic feet per day of gas sourced from the two of the largest and most active regions of the Permian Basin: the Delaware Basin, which lies in the westernmost part of the state, and the Midland Basin, which takes up most of the area south of the Panhandle and north of the U.S.-Mexican border.
In the Delaware Basin, Vaquero Midstream (The Woodlands, Texas) expects to begin construction on the $150 million third processing unit at the Caymus Cryogenic Sour Natural Gas Processing Plant in Coyanosa, which would bring the facility's total processing capacity from the Avalon, Wolfcamp and Bone Spring shale formations to 600 million standard cubic feet per day. The first two processing units, the second of which began operations over the summer, are anchored by long-term volume and acreage commitments from multiple producers in the Delaware Basin. For more information, see Industrial Info's project report.
MPLX LP (NYSE:MPLX) (Findlay, Ohio) is building out its presence in the Delaware Basin with its $125 million Tornado Natural Gas Processing Plant in Mentone, which the company expects to finish in August 2019. It will connect to the Agua Blanca gas pipeline system, which has 1.1 billion cubic feet per day of long-term commitments and in which MPLX has a 10% equity interest. For more information, see Industrial Info's project report.
The three natural gas processing projects rated by Industrial Info as highly likely to kick off in the Midland Basin are:
Oklahoma also is home to one of the few crude oil storage projects in the U.S. Southwest with a high likelihood of kicking off: Alta Mesa Resources Incorporated's (NASDAQ:AMR) (Houston) $35 million storage tank addition at the Kingfisher Midstream Plant in Dover. The 80,000-barrel, aboveground tank will support the planned Cimarron Express Pipeline. For more information, see Industrial Info's project report.
And there's surprising news from the Gulf of Mexico: Offshore oil and gas production may be on the cusp of a revival, following years of diminished activity. Industry investors have been encouraged by a steep reduction in costs associated with offshore drilling that could help producers turn profits--even if oil prices dip again, according to Audun Martinsen, the head of oilfield research at Rystad, as quoted in Bloomberg.
Royal Dutch Shell plc's (NYSE:RDS.A) (The Hague, Netherlands) estimated $4 billion Vito Offshore Platform, which the company authorized in May and is expected to kick off in the coming months, is in an area with depths of more than 4,000 feet and reserves of up to 300 million barrels of oil equivalent. It will be the company's 11th deepwater host in the Gulf of Mexico and is benefiting from technological developments that allow Shell to produce more at lower costs. For more information, see Industrial Info's project report.
The Gulf Coast also is hosting numerous projects stemming from the boom in liquefied natural gas (LNG) demand. Enterprise Products Partners LP (NYSE:EPD) (Houston) recently began construction of a $575 million tenth NGL fractionator at its facility in Mont Belvieu, Texas. Enterprise's new fractionator will have a capacity of 150,000 BBL/d, bringing Enterprise's total fractionation capacity at Mont Belvieu to 905,000 BBL/d. For more information, see Industrial Info's project report and September 6, 2018, article - Enterprise Products Begins Construction of Tenth Fractionator at Mont Belvieu, Where Industrial Info Tracks $5.5 Billion in Projects.
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 projects in the Oil & Gas Production Industry in the U.S. Southwest, by industrial sector.The Southwest region includes Arkansas, Louisiana, Oklahoma and Texas.
Natural gas processing plants account for the highest number of Production-related projects set to kick off in the fourth quarter, five of which are in Texas and are rated by Industrial Info is having an 81% to 99% chance of beginning construction as scheduled. Each is expected to process about 200 million standard cubic feet per day of gas sourced from the two of the largest and most active regions of the Permian Basin: the Delaware Basin, which lies in the westernmost part of the state, and the Midland Basin, which takes up most of the area south of the Panhandle and north of the U.S.-Mexican border.
In the Delaware Basin, Vaquero Midstream (The Woodlands, Texas) expects to begin construction on the $150 million third processing unit at the Caymus Cryogenic Sour Natural Gas Processing Plant in Coyanosa, which would bring the facility's total processing capacity from the Avalon, Wolfcamp and Bone Spring shale formations to 600 million standard cubic feet per day. The first two processing units, the second of which began operations over the summer, are anchored by long-term volume and acreage commitments from multiple producers in the Delaware Basin. For more information, see Industrial Info's project report.
MPLX LP (NYSE:MPLX) (Findlay, Ohio) is building out its presence in the Delaware Basin with its $125 million Tornado Natural Gas Processing Plant in Mentone, which the company expects to finish in August 2019. It will connect to the Agua Blanca gas pipeline system, which has 1.1 billion cubic feet per day of long-term commitments and in which MPLX has a 10% equity interest. For more information, see Industrial Info's project report.
The three natural gas processing projects rated by Industrial Info as highly likely to kick off in the Midland Basin are:
- Targa Resources Corporation's (NYSE:TRGP) (Houston, Texas) $150 million Pembrook Natural Gas Processing Plant in Midkiff; see project report
- West Texas Gas Incorporated's (Midland, Texas) $120 million St. Lawrence Natural Gas Processing Plant in Big Lake; see project report
- Cogent Midstream's (Dallas, Texas) $120 million Big Lake Natural Gas Processing Plant in Big Lake ; see project report
Oklahoma also is home to one of the few crude oil storage projects in the U.S. Southwest with a high likelihood of kicking off: Alta Mesa Resources Incorporated's (NASDAQ:AMR) (Houston) $35 million storage tank addition at the Kingfisher Midstream Plant in Dover. The 80,000-barrel, aboveground tank will support the planned Cimarron Express Pipeline. For more information, see Industrial Info's project report.
And there's surprising news from the Gulf of Mexico: Offshore oil and gas production may be on the cusp of a revival, following years of diminished activity. Industry investors have been encouraged by a steep reduction in costs associated with offshore drilling that could help producers turn profits--even if oil prices dip again, according to Audun Martinsen, the head of oilfield research at Rystad, as quoted in Bloomberg.
Royal Dutch Shell plc's (NYSE:RDS.A) (The Hague, Netherlands) estimated $4 billion Vito Offshore Platform, which the company authorized in May and is expected to kick off in the coming months, is in an area with depths of more than 4,000 feet and reserves of up to 300 million barrels of oil equivalent. It will be the company's 11th deepwater host in the Gulf of Mexico and is benefiting from technological developments that allow Shell to produce more at lower costs. For more information, see Industrial Info's project report.
The Gulf Coast also is hosting numerous projects stemming from the boom in liquefied natural gas (LNG) demand. Enterprise Products Partners LP (NYSE:EPD) (Houston) recently began construction of a $575 million tenth NGL fractionator at its facility in Mont Belvieu, Texas. Enterprise's new fractionator will have a capacity of 150,000 BBL/d, bringing Enterprise's total fractionation capacity at Mont Belvieu to 905,000 BBL/d. For more information, see Industrial Info's project report and September 6, 2018, article - Enterprise Products Begins Construction of Tenth Fractionator at Mont Belvieu, Where Industrial Info Tracks $5.5 Billion in Projects.
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/.
