American Oil and Gas Reporter - June 2015 - 129

momentum this year, Capital One continues. It adds that respondents who expected growth in alternative energy to be
the leading industry trend dropped from
11 percent in the 2014 survey to only 1
percent this year.
Seventy-two percent of survey respondents identified access to and cost of
equity capital as the most important financing issue for 2015, followed by refinancing of current debt (17 percent), and
access to/cost of senior debt (9 percent),
Capital One adds.

"Concerns about energy prices will impact the operational and financial outlook
of companies across the industry," concludes
Russ Johnson, head of energy investment
banking at Capital One Securities.
He says 81 percent of those surveyed
expected the pace of mergers and acquisitions activity to increase this year, which
was a 30-point rise from last year's
survey. Only 10 percent of respondents
expected M&A activity to decrease.
Despite the volatility in energy prices,
Capital One says respondents maintained

a positive outlook overall: 79 percent
said they expected to feel better about
the performance of the energy industry
in a year, compared with 13 percent expecting to feel worse.
"We expect to see a trend toward consolidation in 2015, as some industry players
take advantage of M&A opportunities to
strengthen their strategic positions and
prepare for eventual movement in energy
prices," reflects Bob Mertensotto, head of
energy debt capital markets for Capital
One Bank and Capital One Securities. ❒

Techniques Give New Life To Old Plays

HOUSTON-As much as 141 billion
barrels of potential incremental hydrocarbon resources could be unlocked if
drilling and completion techniques refined
in U.S. shale plays are applied to conventional, low-productivity oil plays outside
North America, an IHS analysis predicts.
Curious as to what the potential might
be if newer techniques were applied to
old plays, the company says IHS Energy
researchers conducted a high-level assessment that identified more than 170
mature oil plays worldwide with untapped
oil potential that could benefit from horizontal drilling and hydraulic fracturing.
They published their results in IHS Energy
Analysis of the Use of Unconventional
Drilling and Completion Techniques in
Conventional, Low-Quality Oil Fields
Outside of North America.
"While our analysis was an initial, highlevel assessment of low-productivity plays
outside the United States, we were quite
surprised at the impressive potential for increased recovery using these unconventional
techniques," assesses Susan Farrell, vice
president of upstream energy research at
IHS and one of the authors of the analysis.
"As many of the world's oil and gas producers struggle to lower costs and optimize
assets, we wondered what kind of impact
applying newer technological innovations
could deliver to the industry in terms of
expanding conventional resource potential
outside North America."
IHS says the rock properties in these
mature plays are less than desirable for
production using conventional techniques,
and as a result, many of them have produced
only a small portion of the total oil in
place. Of the estimated 141 billion barrels
of potentially recoverable oil using unconventional techniques, its assessment says
135 billion barrels exist in plays that likely
would require hydraulic fracture stimulation
to produce, with the other 6 billion barrels
in plays that may not require fracturing.
"Drilling horizontal wells allows access

to thinner zones, where vertical wells are
not commercially productive," says Leta
K. Smith, director of upstream energy
research at IHS Energy and the principal
analyst of the study. "Also, horizontal
wells allow engineers to connect compartmentalized portions of the reservoir
with one well instead of many vertical
wells, which addresses cost and footprint
considerations as well as increasing the
well-to-reservoir contact ratio."

Better Placement
The study also points out modern seismic and measurement-while-drilling technologies would allow operators to achieve
better placement of fractures to take advantage of natural fracturing and other
geologic features to maximize production
and avoid water zones.
"Combined with other technologies
developed for shale development, such
as pad drilling, these improvements could
breathe new life into some of these older,
conventional fields," Smith offers.
The IHS Energy analysis looked at
three projects where operators were leveraging new techniques to address geologic
and production challenges:
* The Saint Martin de Bossenay Field
in the Paris (France) Basin;
* The Tahe Complex in China's
Tarim Basin; and
* The Bin Ben Tartar Field in Tunisia.
Discovered in 1959, the Saint Martin
de Bossenay Field was abandoned in
1996 after producing mostly water. Redevelopment began using new techniques,
including seismic specifically targeting
nonproducing portions of the field, IHS
says, adding hydraulic fracturing was not
used because it is banned in France. Following redevelopment, the analysis says
the field's recovery factor improved from
40 percent to 44 percent, adding 1 million
barrels to proven plus probable reserves.
According to the IHS analysis, the

number of low-productivity conventional
fields that could benefit from new technologies is relatively evenly distributed
across the world, but two-thirds of the
estimated potential incremental oil volumes are in the Middle East or Latin
America. The top three countries outside
North America for potential incremental
oil recovery in low-productivity conventional plays are Iran, Russia and China.
IHS points to Mexico as another candidate country, saying unlike many of
the other countries identified as having
potential for increased production, access
is not limited to international oil companies.
With the opening of the country's upstream
sector, Smith says Mexico may see new
investments in these resources.
❒

REX's New East-To-West
Capacity Gets FERC's OK

LEAWOOD, KS.-Tallgrass Energy
Partners LP says the Federal Energy Regulatory Commission has approved its
Rockies Express Pipeline (REX) to transport 1.2 billion cubic feet a day of gas
from Appalachia to the Midwest.
According to Tallgrass, the additional
east-to-west capacity will complement
REX's current capabilities, and will have
no adverse impact on its ability to meet
existing transportation obligations.
The Zone 3 east-to-west project's 1.2
Bcf/d capacity is contracted fully for a
weighted average life of 20 years, and is
in addition to the 600 million cubic feet
a day of east-to-west capacity being
served through the Seneca Lateral and
Zone 3 mainline, the partnership states.
Tallgrass says it expects the Zone 3
east-to-west project will be placed in
service sometime during the second half
of 2015. Once in service, REX will have
the ability to flow 1.8 Bcf/d of gas in
either direction in Zone 3.
❒
JUNE 2015 129



American Oil and Gas Reporter - June 2015

Table of Contents for the Digital Edition of American Oil and Gas Reporter - June 2015

Contents
American Oil and Gas Reporter - June 2015 - Cover1
American Oil and Gas Reporter - June 2015 - Cover2
American Oil and Gas Reporter - June 2015 - 3
American Oil and Gas Reporter - June 2015 - Contents
American Oil and Gas Reporter - June 2015 - 5
American Oil and Gas Reporter - June 2015 - 6
American Oil and Gas Reporter - June 2015 - 7
American Oil and Gas Reporter - June 2015 - 8
American Oil and Gas Reporter - June 2015 - 9
American Oil and Gas Reporter - June 2015 - 10
American Oil and Gas Reporter - June 2015 - 11
American Oil and Gas Reporter - June 2015 - 12
American Oil and Gas Reporter - June 2015 - 13
American Oil and Gas Reporter - June 2015 - 14
American Oil and Gas Reporter - June 2015 - 15
American Oil and Gas Reporter - June 2015 - 16
American Oil and Gas Reporter - June 2015 - 17
American Oil and Gas Reporter - June 2015 - 18
American Oil and Gas Reporter - June 2015 - 19
American Oil and Gas Reporter - June 2015 - 20
American Oil and Gas Reporter - June 2015 - 21
American Oil and Gas Reporter - June 2015 - 22
American Oil and Gas Reporter - June 2015 - 23
American Oil and Gas Reporter - June 2015 - 24
American Oil and Gas Reporter - June 2015 - 25
American Oil and Gas Reporter - June 2015 - 26
American Oil and Gas Reporter - June 2015 - 27
American Oil and Gas Reporter - June 2015 - 28
American Oil and Gas Reporter - June 2015 - 29
American Oil and Gas Reporter - June 2015 - 30
American Oil and Gas Reporter - June 2015 - 31
American Oil and Gas Reporter - June 2015 - 32
American Oil and Gas Reporter - June 2015 - 33
American Oil and Gas Reporter - June 2015 - 34
American Oil and Gas Reporter - June 2015 - 35
American Oil and Gas Reporter - June 2015 - 36
American Oil and Gas Reporter - June 2015 - 37
American Oil and Gas Reporter - June 2015 - 38
American Oil and Gas Reporter - June 2015 - 39
American Oil and Gas Reporter - June 2015 - 40
American Oil and Gas Reporter - June 2015 - 41
American Oil and Gas Reporter - June 2015 - 42
American Oil and Gas Reporter - June 2015 - 43
American Oil and Gas Reporter - June 2015 - 44
American Oil and Gas Reporter - June 2015 - 45
American Oil and Gas Reporter - June 2015 - 46
American Oil and Gas Reporter - June 2015 - 47
American Oil and Gas Reporter - June 2015 - 48
American Oil and Gas Reporter - June 2015 - 49
American Oil and Gas Reporter - June 2015 - 50
American Oil and Gas Reporter - June 2015 - 51
American Oil and Gas Reporter - June 2015 - 52
American Oil and Gas Reporter - June 2015 - 53
American Oil and Gas Reporter - June 2015 - 54
American Oil and Gas Reporter - June 2015 - 55
American Oil and Gas Reporter - June 2015 - 56
American Oil and Gas Reporter - June 2015 - 57
American Oil and Gas Reporter - June 2015 - 58
American Oil and Gas Reporter - June 2015 - 59
American Oil and Gas Reporter - June 2015 - 60
American Oil and Gas Reporter - June 2015 - 61
American Oil and Gas Reporter - June 2015 - 62
American Oil and Gas Reporter - June 2015 - 63
American Oil and Gas Reporter - June 2015 - 64
American Oil and Gas Reporter - June 2015 - 65
American Oil and Gas Reporter - June 2015 - 66
American Oil and Gas Reporter - June 2015 - 67
American Oil and Gas Reporter - June 2015 - 68
American Oil and Gas Reporter - June 2015 - 69
American Oil and Gas Reporter - June 2015 - 70
American Oil and Gas Reporter - June 2015 - 71
American Oil and Gas Reporter - June 2015 - 72
American Oil and Gas Reporter - June 2015 - 73
American Oil and Gas Reporter - June 2015 - 74
American Oil and Gas Reporter - June 2015 - 75
American Oil and Gas Reporter - June 2015 - 76
American Oil and Gas Reporter - June 2015 - 77
American Oil and Gas Reporter - June 2015 - 78
American Oil and Gas Reporter - June 2015 - 79
American Oil and Gas Reporter - June 2015 - 80
American Oil and Gas Reporter - June 2015 - 81
American Oil and Gas Reporter - June 2015 - 82
American Oil and Gas Reporter - June 2015 - 83
American Oil and Gas Reporter - June 2015 - 84
American Oil and Gas Reporter - June 2015 - 85
American Oil and Gas Reporter - June 2015 - 86
American Oil and Gas Reporter - June 2015 - 87
American Oil and Gas Reporter - June 2015 - 88
American Oil and Gas Reporter - June 2015 - 89
American Oil and Gas Reporter - June 2015 - 90
American Oil and Gas Reporter - June 2015 - 91
American Oil and Gas Reporter - June 2015 - 92
American Oil and Gas Reporter - June 2015 - 93
American Oil and Gas Reporter - June 2015 - 94
American Oil and Gas Reporter - June 2015 - 95
American Oil and Gas Reporter - June 2015 - 96
American Oil and Gas Reporter - June 2015 - 97
American Oil and Gas Reporter - June 2015 - 98
American Oil and Gas Reporter - June 2015 - 99
American Oil and Gas Reporter - June 2015 - 100
American Oil and Gas Reporter - June 2015 - 101
American Oil and Gas Reporter - June 2015 - 102
American Oil and Gas Reporter - June 2015 - 103
American Oil and Gas Reporter - June 2015 - 104
American Oil and Gas Reporter - June 2015 - 105
American Oil and Gas Reporter - June 2015 - 106
American Oil and Gas Reporter - June 2015 - 107
American Oil and Gas Reporter - June 2015 - 108
American Oil and Gas Reporter - June 2015 - 109
American Oil and Gas Reporter - June 2015 - 110
American Oil and Gas Reporter - June 2015 - 111
American Oil and Gas Reporter - June 2015 - 112
American Oil and Gas Reporter - June 2015 - 113
American Oil and Gas Reporter - June 2015 - 114
American Oil and Gas Reporter - June 2015 - 115
American Oil and Gas Reporter - June 2015 - 116
American Oil and Gas Reporter - June 2015 - 117
American Oil and Gas Reporter - June 2015 - 118
American Oil and Gas Reporter - June 2015 - 119
American Oil and Gas Reporter - June 2015 - 120
American Oil and Gas Reporter - June 2015 - 121
American Oil and Gas Reporter - June 2015 - 122
American Oil and Gas Reporter - June 2015 - 123
American Oil and Gas Reporter - June 2015 - 124
American Oil and Gas Reporter - June 2015 - 125
American Oil and Gas Reporter - June 2015 - 126
American Oil and Gas Reporter - June 2015 - 127
American Oil and Gas Reporter - June 2015 - 128
American Oil and Gas Reporter - June 2015 - 129
American Oil and Gas Reporter - June 2015 - 130
American Oil and Gas Reporter - June 2015 - 131
American Oil and Gas Reporter - June 2015 - 132
American Oil and Gas Reporter - June 2015 - 133
American Oil and Gas Reporter - June 2015 - 134
American Oil and Gas Reporter - June 2015 - 135
American Oil and Gas Reporter - June 2015 - 136
American Oil and Gas Reporter - June 2015 - 137
American Oil and Gas Reporter - June 2015 - 138
American Oil and Gas Reporter - June 2015 - Cover3
American Oil and Gas Reporter - June 2015 - Cover4
https://www.nxtbook.com/nxtbooks/aogr/202403
https://www.nxtbook.com/nxtbooks/aogr/202402
https://www.nxtbook.com/nxtbooks/aogr/202401
https://www.nxtbook.com/nxtbooks/aogr/202312
https://www.nxtbook.com/nxtbooks/aogr/202311
https://www.nxtbook.com/nxtbooks/aogr/pbios_202310
https://www.nxtbook.com/nxtbooks/aogr/202309
https://www.nxtbook.com/nxtbooks/aogr/202308
https://www.nxtbook.com/nxtbooks/aogr/202307
https://www.nxtbook.com/nxtbooks/aogr/202306
https://www.nxtbook.com/nxtbooks/aogr/202305
https://www.nxtbook.com/nxtbooks/aogr/202304
https://www.nxtbook.com/nxtbooks/aogr/202303
https://www.nxtbook.com/nxtbooks/aogr/202302
https://www.nxtbook.com/nxtbooks/aogr/202301
https://www.nxtbook.com/nxtbooks/aogr/202212
https://www.nxtbook.com/nxtbooks/aogr/202211
https://www.nxtbook.com/nxtbooks/aogr/202210
https://www.nxtbook.com/nxtbooks/aogr/202209
https://www.nxtbook.com/nxtbooks/aogr/202208
https://www.nxtbook.com/nxtbooks/aogr/202207
https://www.nxtbook.com/nxtbooks/aogr/202206
https://www.nxtbook.com/nxtbooks/aogr/202205
https://www.nxtbook.com/nxtbooks/aogr/202204
https://www.nxtbook.com/nxtbooks/aogr/202203
https://www.nxtbook.com/nxtbooks/aogr/202202
https://www.nxtbook.com/nxtbooks/aogr/202201
https://www.nxtbook.com/nxtbooks/aogr/202112
https://www.nxtbook.com/nxtbooks/aogr/202111
https://www.nxtbook.com/nxtbooks/aogr/pbios_202110
https://www.nxtbook.com/nxtbooks/aogr/202109
https://www.nxtbook.com/nxtbooks/aogr/202108
https://www.nxtbook.com/nxtbooks/aogr/202107
https://www.nxtbook.com/nxtbooks/aogr/202106
https://www.nxtbook.com/nxtbooks/aogr/202105
https://www.nxtbook.com/nxtbooks/aogr/202104
https://www.nxtbook.com/nxtbooks/aogr/202103
https://www.nxtbook.com/nxtbooks/aogr/202102
https://www.nxtbook.com/nxtbooks/aogr/202101
https://www.nxtbook.com/nxtbooks/aogr/202012
https://www.nxtbook.com/nxtbooks/aogr/202011
https://www.nxtbook.com/nxtbooks/aogr/202010
https://www.nxtbook.com/nxtbooks/aogr/202009
https://www.nxtbook.com/nxtbooks/aogr/202008
https://www.nxtbook.com/nxtbooks/aogr/202007
https://www.nxtbook.com/nxtbooks/aogr/202006
https://www.nxtbook.com/nxtbooks/aogr/202005
https://www.nxtbook.com/nxtbooks/aogr/202004
https://www.nxtbook.com/nxtbooks/aogr/202003
https://www.nxtbook.com/nxtbooks/aogr/202002
https://www.nxtbook.com/nxtbooks/aogr/202001
https://www.nxtbook.com/nxtbooks/aogr/201912
https://www.nxtbook.com/nxtbooks/aogr/201911
https://www.nxtbook.com/nxtbooks/aogr/201910
https://www.nxtbook.com/nxtbooks/aogr/201909
https://www.nxtbook.com/nxtbooks/aogr/201908
https://www.nxtbook.com/nxtbooks/aogr/201907
https://www.nxtbook.com/nxtbooks/aogr/201906
https://www.nxtbook.com/nxtbooks/aogr/201905
https://www.nxtbook.com/nxtbooks/aogr/201904
https://www.nxtbook.com/nxtbooks/aogr/201903
https://www.nxtbook.com/nxtbooks/aogr/201902
https://www.nxtbook.com/nxtbooks/aogr/201901
https://www.nxtbook.com/nxtbooks/aogr/201812
https://www.nxtbook.com/nxtbooks/aogr/201811
https://www.nxtbook.com/nxtbooks/aogr/201810
https://www.nxtbook.com/nxtbooks/aogr/pbios_201810
https://www.nxtbook.com/nxtbooks/aogr/201809
https://www.nxtbook.com/nxtbooks/aogr/201808
https://www.nxtbook.com/nxtbooks/aogr/201807
https://www.nxtbook.com/nxtbooks/aogr/201806
https://www.nxtbook.com/nxtbooks/aogr/201805
https://www.nxtbook.com/nxtbooks/aogr/201804
https://www.nxtbook.com/nxtbooks/aogr/201803
https://www.nxtbook.com/nxtbooks/aogr/201802
https://www.nxtbook.com/nxtbooks/aogr/201801
https://www.nxtbook.com/nxtbooks/aogr/201712
https://www.nxtbook.com/nxtbooks/aogr/201711
https://www.nxtbook.com/nxtbooks/aogr/201710
https://www.nxtbook.com/nxtbooks/aogr/201709
https://www.nxtbook.com/nxtbooks/aogr/201708
https://www.nxtbook.com/nxtbooks/aogr/201707
https://www.nxtbook.com/nxtbooks/aogr/201706
https://www.nxtbook.com/nxtbooks/aogr/201705
https://www.nxtbook.com/nxtbooks/aogr/201704
https://www.nxtbook.com/nxtbooks/aogr/201703
https://www.nxtbook.com/nxtbooks/aogr/201702
https://www.nxtbook.com/nxtbooks/aogr/201701
https://www.nxtbook.com/nxtbooks/aogr/201612
https://www.nxtbook.com/nxtbooks/aogr/201611
https://www.nxtbook.com/nxtbooks/aogr/201610
https://www.nxtbook.com/nxtbooks/aogr/pbios2016_programguide
https://www.nxtbook.com/nxtbooks/aogr/201609
https://www.nxtbook.com/nxtbooks/aogr/201608
https://www.nxtbook.com/nxtbooks/aogr/201607
https://www.nxtbook.com/nxtbooks/aogr/201606
https://www.nxtbook.com/nxtbooks/aogr/201605
https://www.nxtbook.com/nxtbooks/aogr/201604
https://www.nxtbook.com/nxtbooks/aogr/201603
https://www.nxtbook.com/nxtbooks/aogr/201602
https://www.nxtbook.com/nxtbooks/aogr/201601
https://www.nxtbook.com/nxtbooks/aogr/201512
https://www.nxtbook.com/nxtbooks/aogr/201511
https://www.nxtbook.com/nxtbooks/aogr/201510
https://www.nxtbook.com/nxtbooks/aogr/201509
https://www.nxtbook.com/nxtbooks/aogr/201508
https://www.nxtbook.com/nxtbooks/aogr/201507
https://www.nxtbook.com/nxtbooks/aogr/201506
https://www.nxtbook.com/nxtbooks/aogr/201505
https://www.nxtbook.com/nxtbooks/aogr/201504
https://www.nxtbook.com/nxtbooks/aogr/201503
https://www.nxtbook.com/nxtbooks/aogr/201502
https://www.nxtbook.com/nxtbooks/aogr/201501
https://www.nxtbook.com/nxtbooks/aogr/201412
https://www.nxtbook.com/nxtbooks/aogr/201411
https://www.nxtbook.com/nxtbooks/aogr/201410
https://www.nxtbook.com/nxtbooks/aogr/201409
https://www.nxtbook.com/nxtbooks/aogr/pbios2014_programguide
https://www.nxtbook.com/nxtbooks/aogr/201408
https://www.nxtbook.com/nxtbooks/aogr/201407
https://www.nxtbook.com/nxtbooks/aogr/201406
https://www.nxtbook.com/nxtbooks/aogr/201405
https://www.nxtbook.com/nxtbooks/aogr/201404
https://www.nxtbook.com/nxtbooks/aogr/201403
https://www.nxtbook.com/nxtbooks/aogr/201402
https://www.nxtbook.com/nxtbooks/aogr/201401
https://www.nxtbook.com/nxtbooks/aogr/201312
https://www.nxtbook.com/nxtbooks/aogr/201311
https://www.nxtbook.com/nxtbooks/aogr/201310
https://www.nxtbook.com/nxtbooks/aogr/201309
https://www.nxtbook.com/nxtbooks/aogr/201308
https://www.nxtbook.com/nxtbooks/aogr/201307
https://www.nxtbook.com/nxtbooks/aogr/201306
https://www.nxtbook.com/nxtbooks/aogr/201305
https://www.nxtbook.com/nxtbooks/aogr/201304
https://www.nxtbook.com/nxtbooks/aogr/201303
https://www.nxtbook.com/nxtbooks/aogr/201302
https://www.nxtbook.com/nxtbooks/aogr/201301
https://www.nxtbook.com/nxtbooks/aogr/201212
https://www.nxtbook.com/nxtbooks/aogr/201211
https://www.nxtbook.com/nxtbooks/aogr/201210
https://www.nxtbook.com/nxtbooks/aogr/201209
https://www.nxtbook.com/nxtbooks/aogr/2012_pbios
https://www.nxtbook.com/nxtbooks/aogr/201208
https://www.nxtbook.com/nxtbooks/aogr/201207
https://www.nxtbook.com/nxtbooks/aogr/201206
https://www.nxtbook.com/nxtbooks/aogr/201205
https://www.nxtbook.com/nxtbooks/aogr/201204
https://www.nxtbook.com/nxtbooks/aogr/201203
https://www.nxtbook.com/nxtbooks/aogr/201202
https://www.nxtbook.com/nxtbooks/aogr/201201
https://www.nxtbook.com/nxtbooks/demo/aogr_clone
https://www.nxtbook.com/nxtbooks/aogr/201112
https://www.nxtbookmedia.com