American Oil and Gas Reporter - February 2021 - 62

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Ergon purchases and transports 25,000-26,000 bbl/d throughout the Appalachian Basin
to supply the company's refinery in Newell, W.V. Given Appalachia's unique operational
environment with predominately low-volume wells and terrain that challenges truck access to tank batteries, good relationships and open communications between oil producer
and oil purchaser are key to coordinating services and helping operators get the most
value for their crude.

paraffin content and higher BS&W. These
characteristics, and the fact that production
rates can range from one to 50 bbl/d, can
challenge production economics. "
Then, of course, there is the Appalachian
terrain, which poses no shortage of obstacles

for reaching lease locations with an 18wheel tanker truck. " The opportunity to
build lease roads to accommodate tractortrailers simply does not exist in many
places, " he states. " We often load onto triaxles and straight trucks, and because of

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62 THE AMERICAN OIL & GAS REPORTER

the low volumes, we work with producers
to have multiple leases to load at with one
truck in order to get a full truckload. "
Given the unique operational environment, Andreychek says Ergon must maintain good relationships and open communications with producers to " develop
a very real level of trust that we will
deliver on promised services in order to
keep their operations running and help
them utilize different pricing mechanisms
to get the most value for their crude. "
Last April 20, when WTI prices turned
negative, Ergon responded by ending its
monthly average regional price valuation
on April 19, averaging prices posted only
during the first 19 days of the month, before the bottom temporarily fell out. " As
that day unfolded, it became evident to
us that it was an anomaly and not a real
representation of the market value of oil, "
he relates. " We made the decision to end
our monthly average valuation on April
19 in an effort to try to insulate producers
from negative pricing, recognizing the
challenges they face producing conventional stripper wells in Appalachia. "
Since the days of Colonel Drake, producers in the region have had to figure
out how to move oil to market through a

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American Oil and Gas Reporter - February 2021

Table of Contents for the Digital Edition of American Oil and Gas Reporter - February 2021

Contents
American Oil and Gas Reporter - February 2021 - 1
American Oil and Gas Reporter - February 2021 - Cover1
American Oil and Gas Reporter - February 2021 - Cover2
American Oil and Gas Reporter - February 2021 - Contents
American Oil and Gas Reporter - February 2021 - 4
American Oil and Gas Reporter - February 2021 - 5
American Oil and Gas Reporter - February 2021 - 6
American Oil and Gas Reporter - February 2021 - 7
American Oil and Gas Reporter - February 2021 - 8
American Oil and Gas Reporter - February 2021 - 9
American Oil and Gas Reporter - February 2021 - 10
American Oil and Gas Reporter - February 2021 - 11
American Oil and Gas Reporter - February 2021 - 12
American Oil and Gas Reporter - February 2021 - 13
American Oil and Gas Reporter - February 2021 - 14
American Oil and Gas Reporter - February 2021 - 15
American Oil and Gas Reporter - February 2021 - 16
American Oil and Gas Reporter - February 2021 - 17
American Oil and Gas Reporter - February 2021 - 18
American Oil and Gas Reporter - February 2021 - 19
American Oil and Gas Reporter - February 2021 - 20
American Oil and Gas Reporter - February 2021 - 21
American Oil and Gas Reporter - February 2021 - 22
American Oil and Gas Reporter - February 2021 - 23
American Oil and Gas Reporter - February 2021 - 24
American Oil and Gas Reporter - February 2021 - 25
American Oil and Gas Reporter - February 2021 - 26
American Oil and Gas Reporter - February 2021 - 27
American Oil and Gas Reporter - February 2021 - 28
American Oil and Gas Reporter - February 2021 - 29
American Oil and Gas Reporter - February 2021 - 30
American Oil and Gas Reporter - February 2021 - 31
American Oil and Gas Reporter - February 2021 - 32
American Oil and Gas Reporter - February 2021 - 33
American Oil and Gas Reporter - February 2021 - 34
American Oil and Gas Reporter - February 2021 - 35
American Oil and Gas Reporter - February 2021 - 36
American Oil and Gas Reporter - February 2021 - 37
American Oil and Gas Reporter - February 2021 - 38
American Oil and Gas Reporter - February 2021 - 39
American Oil and Gas Reporter - February 2021 - 40
American Oil and Gas Reporter - February 2021 - 41
American Oil and Gas Reporter - February 2021 - 42
American Oil and Gas Reporter - February 2021 - 43
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American Oil and Gas Reporter - February 2021 - 45
American Oil and Gas Reporter - February 2021 - 46
American Oil and Gas Reporter - February 2021 - 47
American Oil and Gas Reporter - February 2021 - 48
American Oil and Gas Reporter - February 2021 - 49
American Oil and Gas Reporter - February 2021 - 50
American Oil and Gas Reporter - February 2021 - 51
American Oil and Gas Reporter - February 2021 - 52
American Oil and Gas Reporter - February 2021 - 53
American Oil and Gas Reporter - February 2021 - 54
American Oil and Gas Reporter - February 2021 - 55
American Oil and Gas Reporter - February 2021 - 56
American Oil and Gas Reporter - February 2021 - 57
American Oil and Gas Reporter - February 2021 - 58
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American Oil and Gas Reporter - February 2021 - 60
American Oil and Gas Reporter - February 2021 - 61
American Oil and Gas Reporter - February 2021 - 62
American Oil and Gas Reporter - February 2021 - 63
American Oil and Gas Reporter - February 2021 - 64
American Oil and Gas Reporter - February 2021 - 65
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American Oil and Gas Reporter - February 2021 - 67
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American Oil and Gas Reporter - February 2021 - 90
American Oil and Gas Reporter - February 2021 - Cover3
American Oil and Gas Reporter - February 2021 - Cover4
https://www.nxtbook.com/nxtbooks/aogr/202102
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