American Oil and Gas Reporter - May 2017 - 67

SpecialReport: Gas Compression Technology
Texas/Louisiana corridor," he explains.
Exports and petrochemicals are adding
to the continued increase in demand from
power plants, which Long says will continue to displace coal thanks to compelling
economics and environmental benefits.
"We are seeing the perfect storm,"
Long declares. "Demand for natural gas
should increase from about 75 Bcf/d
today to 90 Bcf/d by 2020, a mere three
years from now."
Meeting Demand
Meeting the 20 percent increase in
demand will require gathering systems,
treating and processing plants, and
pipelines, Long notes. He says this infrastructure will be provided by specialized
companies rather than integrated firms.
"From 2010-2013, when money
flowed freely, many producers would
own gathering systems, processing plants
and compression in addition to drilling
wells," he recalls. "With today's commodity prices increasing the need for
efficiency, producers and service companies are focusing on their core competencies. Gathering companies are
building gathering systems to deliver
gas to processing plants, processing
companies are optimizing those plants,
and compression companies are providing and maintaining the associated
compression."
In a few cases, Long says producers
will buy equipment. "It makes sense to
purchase compressors needed to provide
baseload compression, as they often have
20-30 year deployment cycles," he allows.
"However, for compressors with deployment
times between three and seven years, we
believe outsourcing is more economic."
Because they have the scale to make
commitments to engine and compressor
manufacturers, Long says compression
providers will have an edge as activity
picks up. "Lead times for some of the
larger, more popular compressor engines
have increased considerably, but compression companies who have made purchase commitments with the manufacturers still are able to get equipment,"
he reports.
The best compression companies try
to maximize their equipment's flexibility,
Long says. "For example, our larger
horsepower compressor packages are
multistage convertible. Instead of building
a single-stage, a two-stage, or a threestage compressor, we design units that
can go from one stage to two or from
two to three stages," he offers. "As con-

ditions change-a common occurrence
with shale production-we can switch
from one stage to another by turning
some valves and moving some flanges."
The process only takes an hour or so,
Long reports. "Our customers benefit by
having compressors that can operate
across a broader range of conditions, and
this lets us keep the same compressor on
location longer. For our customers, that
limits the downtime and transportation
costs associated with swapping out compressors, which for large horsepower
equipment are substantial."
To minimize downtime, Long says almost every major compression company
has invested in remote monitoring systems
and diagnostic tools. "We have spent millions developing proprietary technologies
to improve productivity," he says. "With
these tools, field service personnel spend
less time driving from place to place and
more time fixing problems."
Getting skilled personnel can be difficult, but Long says compression companies
are doing what they can to expand their
talent pools. "We have had great success
hiring and training younger, computersavvy entry level employees and working
with trade schools," he reports. "We also
are hiring veterans, who often have strong
managerial and technical skills."
Long adds that his company has hired
people from the aircraft and automotive
industries. "Because finding skilled labor
in remote areas can be particularly challenging, we are adopting rotations similar
to the ones on offshore platforms and in
some of the Canadian tar sands," he comments. "We will have several employees
dedicated to specific pieces of equipment,
each of which spends a week or two on
and a week or two off, so we maintain
service consistency and unit-level me-

chanical knowledge."
Taking The Long View
With business picking up, compression
companies should be able to invest more
in employee training, says James Barr,
vice president of sales for J-W Power
Company. "Business efficiency depends
on having a knowledgeable workforce,
so that is something we work on continuously. With a portion of our workforce
reaching retirement age, it's something
we all need to do," he stresses. "It costs
more to send two people to a site, but it
is important to transfer knowledge before
our experienced hands retire."
In the short term, Barr says J-W Power
is increasing its manufacturing workforce
and readying idle equipment for deployment. "We have preserved that equipment,
so we are able to get it out with a minimal
capital expense," he comments.
Increasing production could cause
compression equipment that has had maintenance deferred to go down if it is not in
condition to operate near full loads, Barr
cautions. "To cut expenses, producers
have gotten extremely lean as far as the
amount of excess horsepower on location,
so when new gas comes on line, it can
stretch the capabilities of the equipment,"
he says. "It is vital we understand and
respect the equipment's limitations, and
stay on top of maintenance when we
have to operate on the edge."
Ideally, Barr says, operators would
have extra capacity to absorb downtime
caused by unplanned events. "That is an
added expense, but because it improves
facility run time, operators likely will
give themselves more of a cushion as
prices improve and uptime becomes
more important than lower operating
expenses."
❒

Centennial Completes Reeves County Purchase
DENVER-Centennial Resource Development Inc. and its affiliates have closed
on their acquisition of leasehold interests
and related upstream assets in Reeves
County, Tx., from Silverback Exploration.
According to the company, the $855
million transaction covers 35,000 net
acres directly offsetting Centennial's
acreage in the county, in which it holds
an 88 percent average working interest.
The acquisition produces 3,500 barrels
of oil equivalent, and includes at least
600 horizontal drilling locations, assuming
880-foot spacing, prospective for the

Upper Wolfcamp A, Lower Wolfcamp
A, and Wolfcamp B.
Centennial says the estimated undeveloped resource potential is more than
600 million barrels of oil equivalent from
the first two plays, with additional upside
potential from the Wolfcamp C, Avalon
and Bone Spring formations.
The acquisition increases Centennial's
horizontal drilling inventory by 44 percent
and more than doubles its inventory of
extended length laterals, the company
says.
❒
MAY 2017 67



Table of Contents for the Digital Edition of American Oil and Gas Reporter - May 2017

Contents
American Oil and Gas Reporter - May 2017 - 1
American Oil and Gas Reporter - May 2017 - 2
American Oil and Gas Reporter - May 2017 - Contents
American Oil and Gas Reporter - May 2017 - 4
American Oil and Gas Reporter - May 2017 - 5
American Oil and Gas Reporter - May 2017 - 6
American Oil and Gas Reporter - May 2017 - 7
American Oil and Gas Reporter - May 2017 - 8
American Oil and Gas Reporter - May 2017 - 9
American Oil and Gas Reporter - May 2017 - 10
American Oil and Gas Reporter - May 2017 - 11
American Oil and Gas Reporter - May 2017 - 12
American Oil and Gas Reporter - May 2017 - 13
American Oil and Gas Reporter - May 2017 - 14
American Oil and Gas Reporter - May 2017 - 15
American Oil and Gas Reporter - May 2017 - 16
American Oil and Gas Reporter - May 2017 - 17
American Oil and Gas Reporter - May 2017 - 18
American Oil and Gas Reporter - May 2017 - 19
American Oil and Gas Reporter - May 2017 - 20
American Oil and Gas Reporter - May 2017 - 21
American Oil and Gas Reporter - May 2017 - 22
American Oil and Gas Reporter - May 2017 - 23
American Oil and Gas Reporter - May 2017 - 24
American Oil and Gas Reporter - May 2017 - 25
American Oil and Gas Reporter - May 2017 - 26
American Oil and Gas Reporter - May 2017 - 27
American Oil and Gas Reporter - May 2017 - 28
American Oil and Gas Reporter - May 2017 - 29
American Oil and Gas Reporter - May 2017 - 30
American Oil and Gas Reporter - May 2017 - 31
American Oil and Gas Reporter - May 2017 - 32
American Oil and Gas Reporter - May 2017 - 33
American Oil and Gas Reporter - May 2017 - 34
American Oil and Gas Reporter - May 2017 - 35
American Oil and Gas Reporter - May 2017 - 36
American Oil and Gas Reporter - May 2017 - 37
American Oil and Gas Reporter - May 2017 - 38
American Oil and Gas Reporter - May 2017 - 39
American Oil and Gas Reporter - May 2017 - 40
American Oil and Gas Reporter - May 2017 - 41
American Oil and Gas Reporter - May 2017 - 42
American Oil and Gas Reporter - May 2017 - 43
American Oil and Gas Reporter - May 2017 - 44
American Oil and Gas Reporter - May 2017 - 45
American Oil and Gas Reporter - May 2017 - 46
American Oil and Gas Reporter - May 2017 - 47
American Oil and Gas Reporter - May 2017 - 48
American Oil and Gas Reporter - May 2017 - 49
American Oil and Gas Reporter - May 2017 - 50
American Oil and Gas Reporter - May 2017 - 51
American Oil and Gas Reporter - May 2017 - 52
American Oil and Gas Reporter - May 2017 - 53
American Oil and Gas Reporter - May 2017 - 54
American Oil and Gas Reporter - May 2017 - 55
American Oil and Gas Reporter - May 2017 - 56
American Oil and Gas Reporter - May 2017 - 57
American Oil and Gas Reporter - May 2017 - 58
American Oil and Gas Reporter - May 2017 - 59
American Oil and Gas Reporter - May 2017 - 60
American Oil and Gas Reporter - May 2017 - 61
American Oil and Gas Reporter - May 2017 - 62
American Oil and Gas Reporter - May 2017 - 63
American Oil and Gas Reporter - May 2017 - 64
American Oil and Gas Reporter - May 2017 - 65
American Oil and Gas Reporter - May 2017 - 66
American Oil and Gas Reporter - May 2017 - 67
American Oil and Gas Reporter - May 2017 - 68
American Oil and Gas Reporter - May 2017 - 69
American Oil and Gas Reporter - May 2017 - 70
American Oil and Gas Reporter - May 2017 - 71
American Oil and Gas Reporter - May 2017 - 72
American Oil and Gas Reporter - May 2017 - 73
American Oil and Gas Reporter - May 2017 - 74
American Oil and Gas Reporter - May 2017 - 75
American Oil and Gas Reporter - May 2017 - 76
American Oil and Gas Reporter - May 2017 - 77
American Oil and Gas Reporter - May 2017 - 78
American Oil and Gas Reporter - May 2017 - 79
American Oil and Gas Reporter - May 2017 - 80
American Oil and Gas Reporter - May 2017 - 81
American Oil and Gas Reporter - May 2017 - 82
American Oil and Gas Reporter - May 2017 - 83
American Oil and Gas Reporter - May 2017 - 84
American Oil and Gas Reporter - May 2017 - 85
American Oil and Gas Reporter - May 2017 - 86
American Oil and Gas Reporter - May 2017 - 87
American Oil and Gas Reporter - May 2017 - 88
American Oil and Gas Reporter - May 2017 - 89
American Oil and Gas Reporter - May 2017 - 90
American Oil and Gas Reporter - May 2017 - 91
American Oil and Gas Reporter - May 2017 - 92
American Oil and Gas Reporter - May 2017 - 93
American Oil and Gas Reporter - May 2017 - 94
American Oil and Gas Reporter - May 2017 - 95
American Oil and Gas Reporter - May 2017 - 96
American Oil and Gas Reporter - May 2017 - 97
American Oil and Gas Reporter - May 2017 - 98
American Oil and Gas Reporter - May 2017 - 99
American Oil and Gas Reporter - May 2017 - 100
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