Reese Energy Consulting

Get Your Motor Running. It’s Full Speed Ahead for Natural Gas Four days now into a new Administration and a whirlwind of Executive Orders, the nation’s oil and gas industry—in a great exhalation—appears newly charged. Especially for natural gas, where the U.S. sits as chairman of the board of world production and exports as global demand is expected to rise with historic volumes. With an energy cheerleader back in office projects are being reawakened. The ongoing, massive growth of data centers and record-breaking LNG exports begs for more natural gas and pipeline infrastructure—and the timing couldn’t be more serendipitous. Reese Energy Consulting today is following the latest news from Houston-based Kinder Morgan, Inc., which is geared up and full speed ahead to move more natural gas from the Permian to the Texas Gulf’s LNG corridor with the newly announced $1.7 billion Trident Intrastate Pipeline. The 216-mile natural gas line will flow 1.5 BCFD from Katy, Texas, to Port Arthur, Texas. KM, in its recently announced 4Q 2024 release, reiterated its gas-focused strategy to stay ahead of demand from LNG terminals, power plants, data centers, crypto-mining, and industrial re-shoring, committing 89% of its project backlog and $8.1 billion. The lift of export permits has LNG project developers and terminals in expansion feeling some acceleration of their own. Those hamstrung up until now include Commonwealth LNG’s 9.5 MTPA in La..; Energy Transfer’s Lake Charles 15.5 MTPA terminal in La.; Cheniere’s 3 MPTA expansion in Texas; and six other LNG export terminals set to fire up their engines. What do you think? Learn more about REC and our natural gas and LNG expertise and services at https://lnkd.in/ewhkGFa. For more info about our natural gas and LNG training courses, visit us at https://lnkd.in/ggd3UkJM.

Dare We Say… Yippiosity? Yesterday’s inauguration has officially put the sizzle back into American oil and gas. After four long years, the atmosphere today is feeling positively electric for producers, midstream operators, LNG developers, and their plans and developments. We know it has for our colleagues and clients with projects in the queue. Not one to wade too deep into political waters, but Reese Energy Consulting joins the chorus singing Hallelujah. We recognize the stumbling blocks that lie ahead—nothing comes fast or easy—but for now, we can rejoice in a presidential partner who on Day 1 has re-ignited the spirit of a domestic industry the nation hinges on and the entire world depends on. For that, we’re feeling some major yippiosity, especially in the realm of natural gas. According to a recent article in Hart Energy, the U.S. is on the brink of a natural gas super-cycle with demand growth largely coming from LNG exports and the buildout boom of data centers hosting AI and crypto mining. Gas demand, according to Bernstein Research, is expected to rise from 120 BCFD in 2024 to 150 BCFD in 2030. Prices could top $5/MCF. But those numbers could well fall short ahead of the newly proclaimed National Energy Emergency, which includes lifting the pause on LNG export permits, and easing restrictions to build oil and gas pipelines and the infrastructure needed to fully unleash American Energy. It’s a start. A beautiful one. And all the more reason to celebrate yippiosity in our house. What do you think? Learn more about REC and our range of natural gas services at https://lnkd.in/ewhkGFa. Get your natural gas peeps ahead of the game with our online natural gas training courses at https://lnkd.in/ggd3UkJM.

TXO Discovers a Natural Gas Monster in the San Juan The San Juan Basin extends 7,500 square miles across northwest N.M., and southwest Colo. Natural gas was first discovered here in 1921. Now a spry age of 104, it remains one of the nation’s oldest producing areas with sedimentary rock dating back to mid-Paleozoic times and a collision of supercontinents. Proclaimed the nation’s largest natural gas field in 2007 with 12.9 TCF of recoverable gas reserves, the San Juan 10 years later fell into decline with a mass exodus of its largest players selling off assets to smaller independents who banked on the theory where once finding oil and gas, oil and gas can be found again. Reese Energy Consulting today is following the latest news from Fort Worth-based TXO Partners, which reports it’s identified a natural gas motherlode in the Mancos Shale that could yield 3 TCFE. For numerous operators in this small subset of the basin, far away from the state’s southern Permian Delaware, the Mancos continues to reveal her hydrocarbon secrets with San Juan gold. TXO CEO Bob Simpson is betting on it. A shale veteran who sold his XTO Energy in 2010 to ExxonMobil for $41 billion in an all-stock deal considered one of the largest transactions in history for an independent oil and gas company, Simpson took his new baby, TXO, public in 2023 with core assets in the Permian and San Juan. After building a Williston Basin powerhouse he created more than a decade ago, Simpson also leapt back into the Williston last June snapping up assets in the Elm Coulee field in Mont., and Russian Creek field in N.D., for $243 million in cash and 2.5 million common units of TXO. Where once finding oil and gas… What do you think? Learn more about REC and our natural gas expertise and services in the nation’s most prolific basins at https://lnkd.in/ewhkGFa. For more info about our online natural gas training courses, visit us at https://lnkd.in/ggd3UkJM.  

There’s a Lotta Sweet Noise Sounding in the Williston Basin A few weeks ago, Reese Energy Consulting shared news on a nonbinding open season to gauge interest in the proposed 375-mile Bakken East Pipeline project—an idea coddled for 10 years—which would flow natural gas east to near Fargo, N.D. Since our post, we’ve followed the latest from the Williston Basin, where Kinder Morgan, Inc., the deeper middle Three Forks formation, and CO2 enhanced oil recovery are making lots of noise worth hearing. KMI has announced its subsidiary, Hiland Partners LP (USA)—which it purchased 10 years ago this month for $3 billion—will gobble up Outrigger Energy II’s gathering and processing network in the Land of the Bakken. The $640 million deal includes a 104-mile rich gas gathering system with 350 MMCFD of capacity and a 270 MMCFD processing plant, adding more velocity to its midstream engine there. The Bakken may have peaked, considered in decline, but you can hardly count it out as one of the nation’s largest oil-bearing plays inside the Williston Basin, which is proving she has more riches to yield. That would be the middle Three Forks formation that’s said to contain hundreds of millions of barrels of untapped oil. You’ll find the basin’s largest operators here, including Continental Resources, ConocoPhillips, and Chord Energy. Meanwhile, what many Bakken producers long for now is more C02 for enhanced oil recovery that could double the basin’s crude oil volumes. According to the North Dakota Petroleum Council, this means N.D., producing 5 billion Bbls of oil this year—and more captured C02 for EOR going forward that could extend the basin’s life another 30-50 years. What do you think? Learn more about REC and our natural gas services in the Bakken and the nation’s most prolific oil and gas basins at https://lnkd.in/ewhkGFa. For more info about our online natural gas training courses, visit us at https://lnkd.in/ggd3UkJM.   

Constellation Energy Expands its Cosmos Back in September, the nation’s largest producer of clean, emissions-free energy shared some mighty big news. After purchasing the Pa., Three Mile Island Unit 1 in 1999, then retiring operations there in 2019 due to poor economics, Baltimore-based Constellation Energy landed a whale of a deal with Microsoft that would resuscitate the nuclear reactor to generate carbon-free electricity to power Microsoft’s Northeastern data centers. The 20-year purchase agreement reconfirmed Constellation’s position as a nuclear powerhouse on top of its 21 other reactors in the Midwest, Mid-Atlantic, and Northeast. It also prompted a name change of Unit TMI 1 to the Crane Clean Energy Center, which is expected to add more than 800 megawatts to the grid by 2028. Reese Energy Consulting today is following the latest from Constellation Energy, whose fleets of low-carbon energy for power generation also include natural gas, hydro, wind, solar, and batteries. The company will now acquire Houston-based Calpine, the nation’s largest generator of electricity from natural gas and geothermal resources. The $26.6 billion cash-and-stock deal includes Calpine’s 79 power facilities and the world’s largest electricity-producing geothermal operation. The acquisition also expands Constellation’s footprint in Texas amid the state’s data center buildout frenzy. REC is currently engaged with AI data center developers across the country to provide end-to-end natural gas services that generate reliable power connections. Here’s a look at our services: -         Pipeline interconnect design -         Gas connection facilitation and construction management -         Pipeline tap negotiations with physical gas supplier -         Gas supply commercial negotiations -         Gas scheduling, balancing, and supply pricing advisory Learn more about REC and our natural gas expertise at https://lnkd.in/ewhkGFa. For more info about our online natural gas training courses, visit https://lnkd.in/ggd3UkJM.

New Pipeline Moves Add a B-12 Shot to Midstream’s New Year Kickstart Midstream steals the show again this week with news of a triple-whammy in the pipeline acquisitions department, and the secret negotiations playing out on a massive pipeline LNG project that’s been considered all but frozen to death. Reese Energy Consulting today is following the latest from Houston-based Plains All American, which operates 20,000 miles of crude oil and NGL pipelines, 157 MMBls of storage capacity, trucks and trailers, and railcars from the Texas Gulf to Northern Alberta, Canada. Plains has kicked off the new year with three bolt-on acquisitions totaling $725 million to further boost its operations in the Eagle Ford and Permian. The deals include EnCap Flatrock Midstream’s crude oil gathering and transportation system and Ironwood Midstream Energy Partners’s Eagle Ford natural gas gathering system, both in the Eagle Ford; Medallion Midstream’s Delaware crude oil gathering business, and the remaining 50% interest in Midway Pipeline, both via a Plains’ subsidiary. State-owned Alaska Gasline Development Corp., tasked with heading up development of the long beleaguered 807-mile Trans-Alaska natural gas pipeline, has now teased it may finally have a project benefactor in its pocket. The pipeline, designed to flow 3.3 BCFD from the North Slope to the Southcentral LNG export terminal in Nikiski, has attracted the attention of an anonymous energy company that would lead and fund the $44 billion LNG whopper. A framework agreement is in place and formal announcements are expected in the next few months. What do you think? Learn more about REC and our natural gas and midstream services at https://lnkd.in/ewhkGFa. For more info about our online natural gas training courses, visit https://lnkd.in/ggd3UkJM.

Phillips Goes EPIC, Diversified Targets Coalbed Methane Opps Just days into 2025 and new midstream deals are already plotting the script for a year of action to move and export more natural gas and NGL. Reese Energy Consulting today starts with the latest news from Houston-based refiner Phillips 66, which in mid-December wrapped up its $3 billion asset divestiture plan and prepared to pounce with more NGL and midstream ambitions in the Permian. You might recall Phillips last May picked up Pinnacle Midstream’s gas gathering and processing assets in the Midland for $550 million—a strategic chess move that expanded its midstream NGL wellhead-to-market business and set the stage for bigger things to come. Phillips will now acquire EPIC’s NGL midstream business for $2.2 billion. The all-cash deal includes two 170 MBPD fractionators near Corpus Christi and 350 miles of purity distribution pipe. But the real jewel of this handshake may well be EPIC’s 885-mile NGL pipeline, which connects processing plants in the Midland, Delaware, and Eagle Ford to Texas Gulf Coast fractionation complexes and the Phillips 66 Sweeny Hub. Meanwhile in Appalachia, Ala.-based Diversified Energy Company has discovered a few gems all its own with a bolt-on package of producing and midstream assets that will expand its growth in the production of coal mine methane. The $45 million deal with Summit Natural Resources comes with 300 producing wells in Va., and W.V., and 265 producing coal methane wells in Ala., that qualify for Environmental Credit generation. Diversified, which owns the nation’s largest volume of natural gas wells (more than 70,000 as of last August), operates in the Marcellus/Utica, Haynesville, Cotton Valley, Barnett, Anadarko, and Eagle Ford. What do you think? Learn more about REC and our natural gas services and expertise in the nation’s most prolific basins at https://lnkd.in/ewhkGFa. For more info about our online natural gas training courses, visit https://lnkd.in/ggd3UkJM.

The Year of ‘Giddyup’ Yes, we’ve officially branded 2025 with a motivational verb the oil and gas industry has longed to hear after four long years. As they say, what doesn’t kill you makes you stronger and we are poised like racehorses at the gate to unleash American energy in more ways than ever. Welcome to The Year of Giddyup, where drilling, pipeline, and LNG projects that have been halted, stalled, or awaiting FID are ready for a reawakening. Add new opportunities brewing and now in play for natural gas, and we couldn’t be giddier about what lies ahead. Aside from our broad range of producer and midstream services that keeps us in demand, here’s a look at the projects Reese Energy Consulting is fast-tracking in the new year: -         AI-driven data center development to source and connect natural gas supplies—from pipeline interconnects and construction management to commercial negotiations, gas scheduling, balancing, and supply pricing advisory -         REC’s partnership in AGP (American Gas Partners), which continues to sign more European LNG offtake deals to deliver natural gas to Germany and beyond -         Reese Energy Training will drop two new online natural gas training courses in 2025 to include Midstream Basics and LNG Basics Fact is, we’re always looking for new opportunities to expand the role natural gas is set to play in the decades to come. REC offers the experience and team of experts in natural gas-supported power generation to support a new era of energy reliance. Let’s Giddyup. What do you think? Learn more about REC at https://lnkd.in/ewhkGFa. For more info about our online natural gas training courses, visit us at https://lnkd.in/ggd3UkJM.

To Our Clients and Colleagues, Thank you for the privilege to work together. We wish you bountiful blessings and good health in the year ahead, where extraordinary opportunities for growth and prosperity lie ahead for all of us. We couldn’t be more excited to share them with you. From our teams at Reese Energy Consulting and Reese Energy Training to yours, happy New Year.

Let’s Clink Those Champagne Flutes to Natural Gas, Shall We? Just ahead of an Arctic winter blast set to plunge most of the Lower 48 into a brutal cold that could last two weeks, the nation’s producers and midstream operators are all-hands-on-deck to ensure natural gas keeps flowing. In the final hours of 2024, preparations have already been underway to counter whatever Mother Nature dishes out in early 2025—although we can never predict her fickle tendencies. Reese Energy Consulting today shares a snapshot of what our intrepid natural gas folks are still mighty busy with to keep consumers warm and businesses operating now days away from a polar vortex that threatens multiple storms. Producers: Ø Boosting production Ø Maintaining high levels of natural gas storage Ø Inspecting pipelines, compressor stations, and other infrastructure to head off potential problems Ø Working with power companies and distribution utilities to ensure uninterrupted deliveries Ø Keeping the TV on the Weather Channel For Midstream, Winter Readiness Plans are mostly completed after the following: Ø Inspecting and testing critical equipment Ø Installing heaters and devices to prevent ice damage or buildup Ø Adding freeze protection for critical components Ø Repairing or replacing thermal insulation Ø Emergency response training Again, just a snapshot here to fully appreciate our natural gas first-responders. Happy New Year’s Eve. Learn more about REC and our range of natural gas consulting services and expertise at https://lnkd.in/ewhkGFa. For more info about our online natural gas training courses, visit us at https://lnkd.in/ggd3UkJM.