Peak oil? Hardly. From twitter today --
Magellan Midstream Partners, L.P. and Navigator Energy Services reported Friday that they have extended the open season for their proposed Voyager Pipeline System, which would ship crude oil from Cushing, OK, and Midland, TX, to Houston.
.... a 20-inch-diameter pipelines from MMP’s Cushing and Midland terminals to its terminal in Frost, Texas, and constructing a 24-inch-diameter pipeline from Frost to MMP’s terminal in East Houston.
From East Houston, multiple crude oil grades – sourced from Bakken, Rockies, Mid-Continent and Permian producers ...
At Cushing, Voyager would receive shipments from MMP’s Saddlehorn and Navigator’s Glass Mountain pipelines.
In the Permian, the Voyager project might entail repurposing existing MMP pipeline and rights-of-way and/or building new pipeline. The most recent open season document states the Voyager system would likely carry up to six light crude and condensate grades.
Friday’s announcement marks the third open season extension for the proposal; should be operational in early 2021.
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Back to the Bakken
Wells coming off the confidential list today, over the weekend -- Monday, June 3, 2019: 5 for the month; 194 for the quarter;
- 34698, 1,872, CLR, Rolf 3-17H1, 58 stages; 8.1 million lbs; Brooklyn, t4/19; cum 25K after 16 days; the Rolf wells are tracked here;
- 35377, SI/NC, Newfield, Skipjack 149-98-11-2-5H, Pembroke, no production data,
- 35737, SI/NC, Newfield, Skipack 149-98-11-2-11H, Pembroke, no production data,
- 35476, SI/NC, Hess, SC-JCB-LE-154-98-1721H-2, Truax, no production data,
- 35241, SI/NC, WPX, Badlands 4-33-28HA, Heart Buttex, no production data,
| $54.43 | 6/3/2019 | 06/03/2018 | 06/03/2017 | 06/03/2016 | 06/03/2015 |
|---|---|---|---|---|---|
| Active Rigs | 64 | 60 | 51 | 25 | 81 |
RBN Energy: Oryx Midstream's Permian crude gathering and regional transport system.
By their very nature, crude oil gathering systems in the Permian are works in progress. They often start out small, serving only a few wells owned by a single producer — or maybe two or three. Over time, the systems typically branch out to serve more producers and more wells, and they add capacity as drilling activity picks up.
Sometimes, they evolve into much larger systems with multiple gathering hubs and regional transport pipelines that shuttle large volumes of gathered crude long distances to big marketing hubs like Crane, TX, and Midland, where the oil can flow into any number of takeaway pipelines to Cushing or the Gulf Coast. Today, we continue our series on Permian crude gathering systems with a look at Oryx Midstream’s 860-mile gathering and regional transport network in the super-hot Delaware Basin.
The focus of today’s blog is the Oryx Trans-Permian (OTP) gathering and regional transport system, which has been developed from scratch by Oryx Midstream Services over the past five years. In April 2014, Oryx Midstream received an initial commitment of $300 million from Quantum Energy Partners, Post Oak Energy Capital, Wells Fargo Energy Capital, Oryx management and other private investors to pursue midstream opportunities in the Permian, with an initial focus on the needs of three producers in the northern Delaware Basin.
Since then, the system — still centered in the Delaware — has grown by leaps and bounds, to the point that Oryx Midstream is now the largest privately held crude midstream operator in the entire Permian. In April 2019, funds managed by Stonepeak Infrastructure Partners reached an agreement to acquire Oryx for $3.6 billion in cash — as good an indicator as any that the Oryx folks have built out an important and valuable system.
In this series, we’ve discussed a broad range of Permian gathering systems: new and not-so-new, small and expansive, and in the Midland Basin and in the Delaware, to include:
- the recently announced Beta Crude Connector, a 100-mile-plus, 150-Mb/d gathering system that a joint venture of Concho Resources and Frontier Energy Services is developing in the Midland to serve Concho and other producers
- another Midland-area system: Reliance Gathering’s 185-Mb/d pipeline network, which was originally developed to serve the affiliated producer Reliance Energy, but which has since undergone a number of expansions to serve other producers too
- San Mateo Midstream’s crude gathering systems in the Delaware Basin — one in Eddy County, NM, and the other in Loving County, TX — and its plans for two new systems on the New Mexico side of the state line
- Medallion Midstream’s fast-growing, 1,000-mile crude oil gathering/header system in the Midland (which provides access to firm shippers serving 20 producers) and its 116-mile Delaware Express gathering/shuttle system in the southern Delaware
- the 200-mile gathering system that refiner Delek US has been developing — also in the Midland — to deliver locally produced crude to Delek’s Big Spring, TX, refinery and others
- the crude gathering system that a joint venture of WPX Energy and Howard Energy Partners (HEP) has been developing in the Delaware Basin’s Stateline area; that system currently includes more than 50 miles of pipe, with another 20-plus miles under construction
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