American Oil and Gas Reporter - January 2018 - 121

in the Federal Register to submit initial
comments. The federal agency also denied
a request from energy industry associations, state regulators, consumer advocates
and market participants to extend the
initial comment period to 90 days.
"A 13-day comment period is inconsistent with administrative law practices,
and is woefully inadequate to evaluate
the complex issues involved in assessing

the possible value and efficacy of on-site
fuel supply, and to consider the impacts
of the proposal on complex organized
market structures and dynamics," IPAA
says.
Compounding the problems with the
short comment period is the NOPR's
vague language, which fails to provide
sufficient details to allow interested parties
to comment meaningfully, IPAA charges.

"Reliable service to customers is and
will remain the utmost priority for the
electric sector," IPAA says. "If threats to
reliability are found, immediate action
should be taken. But no such need for
immediate action is necessary to address
the retirement of merchant coal and
nuclear generation as claimed in the DOE
NOPR."
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TXOGA Hails Importance Of Permian
AUSTIN, TX.-The Permian Basin has
become the focus of the nation's potential
to achieve energy dominance, the Texas
Oil & Gas Association asserts.
According to its report, U.S. Energy
Dominance Starts in Texas, TxOGA says
41 percent of the nation's total upstream
deal value in 2016 occurred in the West
Texas and southern New Mexico portions
of the basin, where merger and acquisition
investments totaled $25.6 billion. The
association projects total capital expenditures for the Permian will increase by
400 percent during the next five years-
jumping from $8 billion in 2016 to more
than $40 billion in 2021.
"Our nation's ability to achieve and
sustain energy dominance rests here in
the heart of Texas," says TxOGA President
Todd Staples. "Thanks to rich natural resources, advances in technology, and the
know-how to capitalize on tremendous
opportunity, Texas is helping to make
the United States the global energy leader."
The Permian Basin's 2016 deal total
accounted for 41 percent of all upstream
deal value that year, IHS Markit calculates.
The TxOGA report says the bulk of those
deals was in the region's Delaware Basin,
which attracted $18.0 billion in investment,
while the Midland Basin generated more
than $9.0 billion.
TxOGA points out that AT&T Stadium,
which hosts the Dallas Cowboys, costs
$1.2 billion, meaning the amount spent on
Permian acquisitions in 2016 could have
bought 22 stadiums with millions left over.
Staples notes that Permian Basin oil
and natural gas activity has spurred billions
of dollars in capital investments in expanded pipeline infrastructure, liquefied
natural gas terminals and petrochemical
manufacturing facilities, as well as additional refining capacity.
According to the TxOGA report:
* The Permian Basin accounts for
45 percent of total onshore oil production
in the lower-48 states.
* Half of all active onshore rigs in
the United States operate in the Permian.
* The Permian Basin's production of

2.4 million barrels a day in 2016 is greater
than the average crude oil production of
nine of 14 members of the Organization
of Petroleum Exporting Countries: Algeria,
Angola, Ecuador, Equatorial Guinea,
Gabon, Libya, Nigeria, Qatar and
Venezuela.
In addition to the Permian Basin, the
TxOGA analysis notes that the Eagle
Ford Shale in South Texas is the state's
second-most productive shale play.
Compared with other U.S. shale plays,
TxOGA says, the Permian saw far more
investments in 2016. It has $25.0 billion
in merger and acquisition activity, in contrast to $5.1 billion reported in Oklahoma's
SCOOP/STACK plays, the $21.9 billion
spent in the Niobrara play of Colorado
and Wyoming, and the $2.1 billion reported
in the Bakken Shale of North Dakota
and Montana.
Infrastructure
Investments and Permian Basin production are driving massive infrastructure,
petrochemical and LNG projects in Texas,
TxOGA says, including more than $6
billion being spent on pipelines to connect
the basin with Corpus Christi and the
Texas Gulf Coast. It points out those
projects are expected to support more
than 60,000 jobs.
Other infrastructure highlights mentioned in the report include:
* Since October, more than 3 billion
cubic feet of natural gas pipeline capacity
originating in the Permian Basin has
come on line.
* As of June, companies had announced 134 projects totaling $71 billion
of potential investment to build chemical
manufacturing facilities or expand capacity
along the Texas Gulf Coast.
* Petrochemical manufacturing and
refining represent $240 billion in investments in the full Gulf Coast region, with
a majority of that investment occurring
in Texas and Louisiana.
* U.S. oil exports have increased to
1.3 million barrels a day, representing
more than $1.5 billion a month. Ships

carrying 22 MMbbl of oil for export left
Corpus Christi in the first quarter of
2017, meaning that port accounted for
30 percent of the nation's total crude exports.
LNG exports promise to be another
major economic catalyst for Texas, the
report projects, with the one operational
facility (Cheniere's Sabine Pass terminal)
expected to be joined by seven additional
facilities now planned or under construction. TxOGA cites one analysis that predicts developing LNG facilities across
the state will generate $145 billion in
economic benefits for Texans.
"The oil and natural gas industry continues to be a major economic force in
Texas, and is the primary reason America
is on the threshold of energy dominance,"
the report concludes. "Texas activity is
the reason all global discussions of oil
and natural gas include the growing capacity of the United States. Unprecedented
energy-related investments from the Permian and Eagle Ford, across Texas and
along the Gulf Coast, are strong indicators
that the United States' status as a global
energy power is unlikely to change any
time soon."
The full report is available through the
TxOGA website at https://www.txoga.org/
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Jericho Oil Corp. Boosts
Its Presence In Oklahoma
TULSA-Jericho Oil Corp. has completed acquiring an additional 25 percent
working interest in a producing oil and
gas asset package in Central Oklahoma
from its private family partner (PFP) for
$3.5 million. According to the company,
the assets are in an area complementary
to its operations.
Jericho says it purchased an initial 25
percent working interest at year-end 2015,
with its PFP acquiring the remaining 75
percent. It points out the acquisition represents its fourth within Central and
Northeast Oklahoma since 2015.
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JANUARY 2018 121

https://www.txoga.org/

American Oil and Gas Reporter - January 2018

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