From the Burner Tip

Natural gas’ midstream business is seeing a new direction and growth as natural gas from shale reservoirs continues to grow and expand. Usually in the gas business, midstream activities are seen as a part of the downstream – the marketing, distribution and consumption – ends of the business. Now, with so much activity in the areas of gathering, storage, treating and processing, and pipelines at the intra and interstate levels for natural gas and natural gas liquids (NGLs), it is coming into its own.

Changes announced on Dec. 1 of the administration’s new ruling banning offshore drilling along the East Coast and eastern sector of the Gulf of Mexico for five to seven years only further amplify industry’s questions of what the administration really wants with domestic oil and gas exploration and production companies. The continued changes to the offshore “drill – no drill” and potential changes in onshore production only further the uncertainty of U.S. oil and gas production and the desire to get closer to energy independence.

Natural gas – the second-largest source of fuel in the U.S., stands at a strategic crossroad! At the turn of the century, it was enthusiastically ballyhooed as the “bridge fuel” of the century – it would be the major source of cleaner fuel until economic, efficient forms of “green” energy were developed!

Score another victory for technology! U.S. natural gas supplies have the potential of increasing by 20-40% because of advances in two major oil and gas field technologies. Increased abilities to do horizontal drilling and better ways to open shale gas formations - “fracing” – is resulting in new supplies of this major U.S. fuel.