The DOE recently announced seven clean hydrogen hubs eligible for a combined $7 billion in public funding (Figure 1). Each hub developed a unique hydrogen production strategy that was chosen to best utilize the regionally available resources such as renewable energy type and quality, nuclear availability, existing infrastructure and carbon sequestration basin viability.
Across these metrics, the Gulf Coast’s HyVelocity hub stands out above the rest with excellent renewable energy resources in western Texas, extensive CO2 and H2 pipeline and storage infrastructure, and world-class carbon sequestration basins. Furthermore, the Gulf Coast is home to the highest concentration of primary hydrogen use cases which include refining, ammonia, petrochemical and steel production, and power generation. Enverus Intelligence® Research (EIR) estimates the HyVelocity hub is surrounded by the largest number of these brownfield facilities within a 30-mile radius (70), followed by the Mid-Atlantic Clean Hydrogen Hub (49) and the Midwest Alliance for Clean Hydrogen hub (46).
Highlights from Energy Transition Research
Energy transition – A layered landscape of U.S. opportunities – A colorful and interactive map highlighting the most influential components of the U.S. energy transition through multiple layers. From hydrogen and CCUS projects to transmission lines and EV charging stations to high water stress and biodiversity risk areas, this interactive document provides a sophisticated view of the risks and opportunities that make up the future of energy.
BLK invests $550 million in OXY’s inaugural commercial DAC project – Earlier in November, global investment firm BlackRock partnered with OXY in the company’s trailblazing commercial direct air capture (DAC) facility Stratos being constructed in Ector County, Texas, within the Permian Basin.
Class VI permits enhanced – Emissions insights to injection expectations – EIR analyzes data from its updated Class VI permit tracker, which includes new entries like CO2 source location, facility details, approval dates and disclosed injection volumes. This report delves into current permit activity timelines, offers insights into emission and transportation options near project locations, and identifies trends in the permitting process.
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About Enverus Intelligence®| Research Enverus Intelligence® | Research, Inc. (EIR) is a subsidiary of Enverus that publishes energy-sector research focused on the oil, natural gas, power and renewable industries. EIR publishes reports including asset and company valuations, resource assessments, technical evaluations and macro-economic forecasts, and helps make intelligent connections for energy industry participants, service companies and capital providers worldwide. EIR is registered with the U.S. Securities and Exchange Commission as a foreign investment adviser. Click here to learn more
CALGARY, Alberta (Nov. 28, 2023) — Enverus Intelligence Research (EIR), a subsidiary of Enverus, the most trusted energy-dedicated SaaS platform, has released a new report analyzing data from its updated Class VI permit tracker, which includes new entries such as CO2 source location, facility details, approval dates and disclosed injection volumes. Class VI wells are used to permanently inject CO2 into deep rock formations.
The report explores the following questions:
What do current permit timelines look like today, and how do they impact anticipated regional injection volumes across the L48?
How do the projects and permits stack up in terms of pipeline transport availability and point source emission quality?
Are there any permitting trends that will help project anticipated timelines for future permit applications?
Which region, state and counties are seeing the most permit activity?
“Class VI permits are a key component to the carbon capture and sequestration (CCS) project lifecycle, and while both the generation and evaluation of these applications are lengthy processes, much can be gained by evaluating the population of permits in the queue,” said Evan MacDonald, senior geology associate at EIR.
“By appending ancillary data points to the existing statistics pulled from the U.S. Environmental Protection Agency and other state regulator websites, we can generate several inferences. These diagnostic insights are derived by tying permits to CO2 pipeline data, emission quality, anticipated injection volumes and geographical locations. Analyzing the accumulation of this data provides CCS stakeholders and investors with an essential activity tracking tool to understand which regions are expected to see the most sequestration activity, where CO2 volumes are expected to be flowing and where there may be opportunity for both future partnerships and new developments,” MacDonald said.
Key takeaways from the report:
EIR estimates CO2 injection in Class VI wells will ramp up 100x to 40 million tonnes per annum (MTPA) by mid-2026, based on disclosed injection volumes, Class VI permit timelines and projects with operational capture and transportation at time of permit approval.
Class VI permit applications are up 500% since 2021, averaging four per month in 2023.
36% of projects are located within a 10-mile radius of an existing or proposed CO2. pipeline, allowing easy access to CO2. Notably, Orchard Storage and River Parish Sequestration’s RPN 1 and RPS are located less than 1.5 miles from transportation infrastructure.
Hackberry, River Parish Sequestration’s RPN 1, 4 and 5 permits and TALO’s White Castle project have access to the highest volume of point source emissions with 40, 39 and 38 MTPA within a 30-mile radius of their respective project locations.
CRC leads the permit queue with 31 wells across six projects, followed by XOM with 15 wells across three projects and CapturePoint with 14 wells across three projects.
About Enverus Intelligence Research Enverus Intelligence ® | Research, Inc. (EIR) is a subsidiary of Enverus that publishes energy-sector research focused on the oil, natural gas, power and renewable industries. EIR publishes reports including asset and company valuations, resource assessments, technical evaluations and macro-economic forecasts; and helps make intelligent connections for energy industry participants, service companies and capital providers worldwide. EIR is registered with the U.S. Securities and Exchange Commission as a foreign investment adviser. Enverus is the most trusted, energy-dedicated SaaS platform, offering real-time access to analytics, insights and benchmark cost and revenue data sourced from our partnerships to 98% of U.S. energy producers, and more than 35,000 suppliers. Learn more at Enverus.com.
Nearly a decade ago, Enverus, then known as DrillingInfo, posted a Gulf of Mexico (GOM) primer on its blog. It remains one of our most popular posts. A few things have changed since 2014, so we decided it was time for an update.
Geology
The geology of the GOM is largely Jurassic and Cretaceous, when the basin encouraged collection and evaporation of seawater, leaving behind accumulations of salt and gypsum, which then domed and trapped abundant hydrocarbons.
Offshore leasing program
The Submerged Lands Act of 1953 grants individual states rights to the natural resources of submerged lands from the coastline to no more than 3 nautical miles (5.6 km) into the Atlantic, Pacific, the Arctic Ocean and the GOM. The only exceptions are Texas and the west coast of Florida, where state jurisdiction extends from the coastline to no more than 3 marine leagues (16.2 km) into the GOM. Beyond the state boundaries in the GOM, there are Offshore Protraction Areas that are further subdivided into blocks that go up for bid from the federal government.
In 1953, Congress passed the Outer Continental Shelf Lands Act, which places responsibility for administration of mineral exploration and development on the Outer Continental Shelf with the Secretary of the Interior. Since 1983, leasing and administration of offshore leases has been delegated to the Bureau of Ocean Energy Management or its predecessor, the Minerals Management Service.
Oil and gas leasing is administered in five-year programs, with the upcoming proposal being the 2024-2029 National Outer Continental Shelf Oil and Gas Leasing Program that was released Sept. 29. When announced, the Department of the Interior boasted that the 2024-2029 program had the fewest offshore sales in program history as the Biden administration furthers its goal to rapidly phase down oil and gas leasing in the U.S. and reach net zero emissions by 2050. Under the proposed program, a maximum of three lease sales will be held: one each year in 2025, 2027 and 2029. Only areas of the GOM with existing production and infrastructure would be offered.
The number of sales in this proposal is the fewest allowable under terms of the 2022 Inflation Reduction Act that enable the DOI to expand its offshore wind leasing program through 2030. The DOI noted that the current plan is narrowed significantly from the Trump administration’s original proposal for 47 lease sales off all U.S. coastal areas over five years. The final proposal will become effective after a 60-day waiting period ends and Interior Secretary Deb Haaland issues a formal approval.
According to BOEM data, most of the big-money bids were in the 1970s and 1980s, but more recently Lease Sale 222 in 2012 delivered a top-10 bid of $157 million for Mississippi Canyon Block 718. Statoil (now Equinor) outbid its nearest competitor for the block by 5x. The company went on to drill the Martin exploration well in the block, making a non-commercial discovery in a Miocene-aged reservoir. In 2020, Equinor somewhat famously did a retrospective on its GOM foray, highlighting that on its 30 most expensive leases by bonus bid over $10 million, only five wells were drilled and one discovery was made—Shell-operated Blacktip. The Enverus docFinder database chronicles company presentations including Equinor’s 2020 retrospective, which can be viewed here.
Why do companies like the GOM today? Low-carbon barrels
Despite the Biden administration’s goal to phase out GOM oil and gas extraction, the basin remains a favorable destination for investment. Operators tout the U.S. GOM as having the lowest greenhouse gas emissions of any global play. A report commissioned by the National Ocean Industries Association and released May 8 by ICF found that GOM oil production is one of the lowest emitting crudes on earth and the lowest for any U.S. region. Its carbon intensity is 46% lower than the global average outside the U.S. and Canada. Ironically, the U.S. recently relaxed sanctions on Venezuela’s oil sector and is allowing six months of exports with no restrictions in exchange for electoral concessions made by the Maduro regime. Some of those oil volumes would likely end up in the U.S., providing America with some of the highest carbon intensity oil barrels available on the global market, according to the ICF report.
Low-cost development
The current wave of GOM activity is driven by infrastructure-led projects. The basin benefits from extensive infrastructure in place from decades of development. Operators’ capital programs over the last several years have focused on exploration and development that can be tied back to existing infrastructure, which lowers development costs and extends the life of existing assets. For example, Kosmos Energy’s Tiberius oil discovery, announced in October, could be developed as a tieback to Occidental Petroleum’s Lucius spar 6 miles away. Lucius has been online since early 2015 and existing Lucius tiebacks include ExxonMobil’s Hadrian South and LLOG Exploration’s Buckskin.
Exploration, appraisal and development
Drilling rigs
There are three primary offshore rig types. Jack-ups, semisubmersibles and drillships make up the majority of the offshore rig fleet, and all are used worldwide. Other rig types such as platform rigs, inland barges and tender-assisted rigs are used as well, but they are fewer in number and are generally used in specific geographic areas.
Jack-ups – Used for shallow-water drilling, there are two jack-up types. Independent-leg jack-ups make up most of the existing fleet. They have legs that penetrate the seafloor, while the hull jacks up and down the legs. Mat-supported jack-ups are presently used only in the U.S. GOM. As the name implies, the mat rests on the seafloor during drilling operations. Cantilever jack-ups can skid out over the platform or well location, while slot units have a slot that fits around a platform when drilling development wells.
Semisubmersibles – Used for deepwater drilling, these floating rigs have columns that are ballasted to remain on location either by mooring lines anchored to the seafloor or by dynamic positioning systems. They are used for both exploratory and development drilling.
Drillships – Also used for deepwater drilling, these ship-shaped floating rigs move from location to location under their own power. They can operate in more remote locations and require fewer supply boat trips than do semisubs. They are maintained on location via dynamic positioning systems. Most of the rigs currently under construction are drillships.
Platform rigs – These are self-contained rigs that are placed on fixed platforms for field development drilling. Some are called self-erecting and can be rigged up in as little as a few days. Other larger units require a derrick barge to be installed and can take up to two weeks to be rigged up. Once drilling is completed, the rig is removed from the platform.
Tender-assisted rigs – There are only about 25 of these rigs left in existence, used mostly in West Africa and Southeast Asia. They are monohull units that are moored next to a platform. The rig is then installed onto the platform, while all the power, storage and other functions remain on the tender.
Inland barges – These rigs are specially adapted for inland waters close to shore. They are used in the GOM as well as other areas of the world.
Depending on the rig type, offshore rigs are rated to drill in water depths as shallow as 80 ft to as great as 12,000 ft. The greatest water depth a jack-up can drill in is 550 ft, while many newer units have a rated drilling depth of 35,000 ft. On the floating rig side, the deepest water depth in existence today is 12,000 ft. A handful of these rigs have a rated drilling depth of 50,000 ft, but most of the newer units are rated at 40,000 ft.
Components of an offshore rig
Hull – initially rigs were built out of tanker hulls, so the terminology remains
Power module – converts available fuel into power for the station
Process module – onboarding and offloading of supplies and products
Drilling module – the traditional drilling rig apparatus
Quarters module – where the crew sleeps and eats
Wellbay module – access to the well and other equipment
Derrick – the oil derrick
This image shows some of the major components of an offshore semisubmersible rig:
Offshore rig builders
There are several shipyards around the world that build offshore rigs. Most of the major yards are in Southeast Asia and the Far East, and there are other facilities in the Middle East and some being established in Brazil. Two of the largest are Korea’s Samsung Heavy Industries and Singapore’s Seatrium, the product of a 2023 merger of Keppel Corp. and Sembcorp Marine.
Once offshore infrastructure is built, it must be transported. Tugboats are used to move jack-ups and semisubs for infield moves. When rigs are moved from one geographic area to another, usually a heavy-lift vessel is deployed in an operation commonly called dry-tow. In some cases, semisubs might be what is called wet-towed, in which the rig is towed while in the water. Of course, drillships move under their own power in any situation. As one can imagine, it can be a pretty big production to move a rig from one area to another; a new rig being built in Singapore will take 90 days to reach the GOM.
Project staffing
The offshore installation manager has the executive authority on a rig during a shift. Beyond that, there are various other positions, all with very specific roles to play to keep the rig running smoothly. The number of crew personnel on a rig varies depending on rig type and where the rig is operating. There can be as few as 50 and as many as 200. Given that there are currently more than 200 rigs being built, one of the problems facing the industry today is how they are going to be staffed. Obviously, some of the people will come from older rigs that are retired over time, with the crew simply transferred to a new rig. However, there is still a large people shortage coming.
Procurement and transportation
Supply boats transport supplies to offshore units. These vessels make regularly scheduled trips to and from the rigs, bringing necessary equipment, food and other supplies. Crews are generally transported by either helicopter or crew boats, depending on how far the trip is.
Production
Oil and/or natural gas production is connected by a flowline to another facility or connects into a large-diameter trunk line to the onshore location for processing. Additionally, floating production, storage and offloading (FPSO) vessels can store oil in their hulls for later transport to shore by another tanker vessel.
For more on GOM pipelines, check out this Enverus Foundations workbook.
According to the EIA, U.S. GOM production averaged 1.731 MMbo/d in 2022. Despite being a mature basin, volumes were only 1% below the prior five-year average. Annual output from the basin hit a high of 1.898 MMo/d in 2019. As of the most recent data, production averaged 1.891 MMbo/d in August 2023, and the monthly average has been as high as 1.933 MMbo/d this year in July.
Oil is the primary development driver in the basin. Natural gas production from the basin has essentially been in decline since the EIA started recording withdrawal data for gas in the GOM in 2001. In 2022, natural gas output from the basin averaged 1.909 Bcf/d compared to 13.774 Bcf/d in 2001.
According to Enverus Foundations data, the largest oil producer in the GOM is Shell, with the company’s gross operated production averaging more than 540,000 bo/d for the last available month of production for active wells. BP is the second-largest producer at nearly 400,000 bo/d, followed by Chevron (nearly 230,000 bo/d), Occidental Petroleum (more than 186,000 bo/d) and Murphy Oil (nearly 150,000 bo/d). Enverus Foundations data is constantly updating. While the table below will become outdated as time passes, this workbook will be current.
In 2022, Shell had the most operated wells reach first production, at 10, driven by activity at Mars-Ursa and Power Nap fields in the Mississippi Canyon area, according to Enverus Foundations data. Murphy Oil came in second with seven wells, primarily related to its Khaleesi, Mormont and Samurai fields, which produce to the Kings Quay platform in the Green Canyon area. Arena Energy, which is focused on the shallow-water GOM, had the third-most wells reach first production during 2022, at six.
About Enverus Intelligence Publications Enverus Intelligence Publications presents the news as it happens with impactful, concise articles, cutting through the clutter to deliver timely perspectives and insights on various topics from writers who provide deep context to the energy sector.
The electric vehicle (EV) and plug-in hybrid EV markets are experiencing significant growth in North America, Europe and China. The surge in demand has prompted notable advancements in battery technology to cater to the expanding market.
Manufacturers prioritize various battery characteristics such as affordability, energy density, charging speed, battery lifespan and safety. These factors play a crucial role in determining the consumer appetite for electric vehicles. Recent strides in battery technologies have significantly improved these characteristics, with the energy density of commercial batteries increasing from under 100 watt-hours per liter (Wh/L) in 2008 to more than 700 Wh/L in 2023 (Figure 1), and technologies surpassing 1,000 Wh/L in the final stages of development today.
Notably, lithium-based battery technologies, specifically lithium-nickel-manganese-cobalt and lithium-iron-phosphate, currently command nearly 90% of the market share. New technologies like solid-state batteries are promising step changes in cost, size and energy density. Toyota claims to have achieved a breakthrough in solid-state battery technology and aims to commercially produce ~500-mile EVs by 2026.
These ongoing developments underscore the dynamic nature of EV battery technologies, continually enhancing accessibility and sustainability. Battery technology developers’ commitment to innovation places them on a trajectory toward more efficient, cost-effective and environmentally friendly EVs.
Highlights from Energy Transition Research
Energy transition – A layered landscape of U.S. opportunities – A colorful and interactive map highlighting the most influential components of the U.S. energy transition through multiple layers. From hydrogen and CCUS projects to transmission lines and EV charging stations, to high water stress and biodiversity risk areas, this interactive document provides a sophisticated view of the risks and opportunities that make up the future of energy.
Energy transition and power – Deal volume squeezed by higher rates – This energy transition and power quarterly M&A review utilizes our energy transition M&A platform, which has captured more than 5,000 deals across 100 countries spanning power (generation, distribution, storage and integrated assets) plus alternative fuels, CCUS, equipment manufacturing, EVs and mining of energy transition metals.
Interconnection cost trends – Queued up and nowhere to go – In this report, we analyze the costs of connecting to the grid in five ISOs using five years of historical data to identify interconnection cost thresholds that determine project success in the queue. Extending our analysis to the entire U.S., we then evaluate the 10 largest developers by categorizing their development portfolios as high or low risk of successfully progressing through the interconnection queue.
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Energy is changing. Connect weekly with the ideas that are leading the way.
About Enverus Intelligence®| Research Enverus Intelligence® | Research, Inc. (EIR) is a subsidiary of Enverus that publishes energy-sector research focused on the oil, natural gas, power and renewable industries. EIR publishes reports including asset and company valuations, resource assessments, technical evaluations and macro-economic forecasts, and helps make intelligent connections for energy industry participants, service companies and capital providers worldwide. EIR is registered with the U.S. Securities and Exchange Commission as a foreign investment adviser. Click here to learn more
The North American play-level inventory rankings are in, and there’s been some shakeups.
After almost a year since the last publication by Enverus Intelligence Research (EIR), the remaining inventory by play has seen some movement on the leaderboards. While EIR made minimal revisions to the quantity of remaining locations, quality fell across the board. Cost inflation, productivity degradation, improved data and other development trends drove most of the inventory quality reductions, but those variables did not change uniformly across North American plays.
Tier 1 and 2 (PV-10 breakeven [BE] < $50/bbl or $2.50/mcf) inventory dropped 30% since last year, but some plays are more resilient than others.
Winners include the Montney, Eagle Ford, DJ and SCOOP/STACK plays, which all moved up in the rankings.
Losers include the Marcellus and Bakken, which both slid down in the rankings.
Permian plays still hold the most remaining Tier 1 and 2 locations, but the Montney has a longer lifespan of Tier 1 and 2 sticks due to less activity in the play.
Winners:
Montney
Even with an increasing pace of development, the Montney has de-throned the Delaware for the top spot on sub-$50/bbl BE (Tier 1 and 2) inventory life. The Canadian play is no exception to the trends in degradation and inflation, but the quality of some Montney inventory got help from an improved Canadian Liquids Correction model in Enverus PRISM®. The liquids-rich regions of the play now rank among the top North American plays, with sub-$45/bbl (or $2.25/mcf) breakevens according to EIR. Many of EIR’s top gas equity picksoperate in these regions and have over a decade of sub-$3 HH inventory. With ~1/3 the number of wells put on production each year as the Permian plays, the Montney has a long runway if activity levels hold.
Eagle Ford
The Eagle Ford play (inclusive of Austin Chalk) moved up an astounding six spots on the inventory life leaderboard. Although rig day rates were up 18% year-over-year in September, operators continue to find material efficiency gains to offset inflation. EIR also expanded the extents of proven resource in the Austin Chalk and Upper Eagle Ford, adding some locations with surprisingly strong economics. But the story here is largely resiliency. The core still holds years of inventory, and those locations still break even in the low-$40/bbl range with some of the tightest spacing in North America.
Losers:
Marcellus
Cost inflation between 2022 and 2023 was among the highest in North America. Rig day rates were up 25% year-over-year in September, compared to ~15% across the L48. Total well costs per lateral foot are up ~20% since early 2022 according to estimates in PRISM. Some operators have managed to minimize per foot productivity degradation by widening spacing, but at the cost of some inventory. Productivity degradation is worst in the NE PA Core according to EIR, meaning the area with the highest potential for Tier 1 locations must be risked down.
Bakken
The bulk of the remaining inventory in the Bakken is no longer in EIR’s Tier 1 or 2 categories. Cost inflation has not been as kind to the Bakken as other Rockies plays according to estimates in PRISM. The DJ Basin moved up in both inventory rankings thanks to efficiency gains offsetting inflation and minimal productivity degradation. Then compound the shift in non-core development strategies to wider spacing, longer laterals and less Three Forks, plus a significant increase in the pace of development. All that adds up to a shorter Tier 1 and 2 runway and a drop in the leaderboard behind rival Rockies play, the DJ.
Stay on top of the inventory that matters most to your business. Fill out the form below to connect with us and find out how.
*About Enverus Intelligence®| Research
Enverus Intelligence® | Research, Inc. (EIR) is a subsidiary of Enverus that publishes energy-sector research focused on the oil, natural gas, power and renewable industries. EIR publishes reports including asset and company valuations, resource assessments, technical evaluations and macro-economic forecasts and helps make intelligent connections for energy industry participants, service companies and capital providers worldwide. EIR is registered with the U.S. Securities and Exchange Commission as a foreign investment adviser. See additional disclosures here.
Thanksgiving was always a memorable time in my family. Scattered across the country, it was a time in which we could all get together to celebrate the end of the season and spend time in each other’s presence without any distractions. We also saw it as a time for the family to sit together and go over estate planning. Each year, we would dedicate an hour to discussing changes over the past year and anything pertinent to investments, property, taxes and our family estate.
While some people might find that morbid, the reality is, it gave great calmness to the situation of passing on a legacy when it mattered. There was a clear understanding of the estate and how we should manage it – no surprises. For many families, the opposite is true. Estate planning or family assets are not discussed and almost held in secret. This causes great concern and issues for the next generation, as they have no real understanding or expectation about the family’s royalty interests.
Minerals and royalties are usually ignored or not discussed due to the misunderstanding of complexity. Unlike property, which is tangible, or investments, which can be understood on a screen, royalties are an enigma. To some, minerals are mailbox money, to others, the sentiment that we will never sell, so just accept what is being given. Minerals are simply another real property asset, like real estate, and can be discussed or understood simply with the assistance of Enverus.
For any investment or asset owned the main questions we like to know are:
What do we own?
What is the expected income into the future?
What is the asset worth?
Is there any activity or nearby event that will increase our income?
For minerals, all of this can be understood using Enverus mineral management solutions that will automatically match the wells on your statement to their associated API10 or unique identifier. You will see where the wells you have are in pay, their production, and be notified of any new wells being drilled using Enverus GPS enabled Rigs. All of this on your mobile, tablet or desktop device. Imagine being able to provide insights and context to your family “above and beyond” royalty statements!
We provide an analysis on expected cashflow into the future and the present value of producing assets today, level setting with everyone how oil and gas wells are a declining asset and royalty checks are dependent on new wells being drilled and commodity prices. Eliminate second guessing or worrying about if the checks will stop coming. Gain clarity on the portfolio and its value to the family.
More than anything, most owners want to feel empowered that they know they are being paid correctly, on time and completely. Download a free case study of how MacFarlane company partnered with Enverus to empower themselves with the right information and tools that simplified estate planning and maximized revenue.
You can also watch the on-demand webinar on common mistakes in mineral management to avoid and gain insights on how to manage your mineral assets effectively.
What could be better for Thanksgiving than giving thanks for all things in our lives? Family, friends, health and the benefits that being a royalty owner create. Take the guess work out of providing your family with insights into the estate and be empowered to manage your assets. Get a complete view of Enverus mineral management solutions ranging from our free mineral management platform to advanced, enterprise mineral management solutions and speak to a trusted expert today.
AUSTIN, Texas (November 13, 2023) — For the third year in a row, Enverus, the most trusted energy-dedicated SaaS platform, has been awarded a Top Workplaces distinction by both the Austin American-Statesman and Houston Chronicle.
The awards are based on employee feedback gathered through a third-party survey administered by employee engagement technology partner Energage LLC. The confidential survey uniquely measures 15 culture drivers that are critical to the success of any organization, including alignment, execution and connection, just to name a few.
“Much like the world we live in today, the energy landscape is in constant flux, with changes happening at an unprecedented pace. In this increasingly complex energy environment, the stakes are higher, risks and rewards more pronounced,” said Jeff Hughes, CEO of Enverus. “As the world’s foremost technology partner specialized in energy, Enverus is deeply immersed in the energy sector, comprehending the challenges faced by our customers. We enable intelligent connections throughout the global energy ecosystem, helping others to unearth previously hidden insights and opportunities, act decisively, and achieve exceptional results. Our goal is to bring clarity to their future.
“Receiving recognition as a Top Workplace in both Austin, a well-known technology hub, and Houston, at the core of the U.S. energy sector, highlights the worth we provide to our valued customers and our committed staff. This affirmation of our mission and methodology is both a source of humility and a privilege.”
“Earning a Top Workplaces award is a badge of honor for companies, especially because it comes authentically from their employees,” said Eric Rubino, Energage CEO. “That’s something to be proud of. In today’s market, leaders must ensure they’re allowing employees to have a voice and be heard. That’s paramount. Top Workplaces do this, and it pays dividends.”
About Enverus Enverus is the most trusted, energy-dedicated SaaS platform, offering real-time access to analytics, insights and benchmark cost and revenue data sourced from our partnerships to 98% of U.S. energy producers, and more than 35,000 suppliers. Our platform, with intelligent connections, drives more efficient production and distribution, capital allocation, renewable energy development, investment and sourcing; and our experienced industry experts support our customers through thought leadership, consulting and technology innovations. We provide intelligence across the energy ecosystem: renewables, oil and gas, financial institutions, and power and utilities, with more than 6,000 customers in 50 countries. Learn more at Enverus.com.
About Energage Energage is a purpose-driven company that helps organizations turn employee feedback into useful business intelligence and credible employer recognition through Top Workplaces. Built on 14 years of culture research and the results from 23 million employees surveyed across more than 70,000 organizations, Energage delivers the most accurate competitive benchmark available. With access to a unique combination of patented analytic tools and expert guidance, Energage customers lead the competition with an engaged workforce and an opportunity to gain recognition for their people-first approach to culture. For more information or to nominate your organization, visit energage.com or topworkplaces.com.
Midstream operators connected 3,524 oil and gas wells to gathering systems in the U.S. during Q2, according to an analysis using Enverus Core data presented in the most recent issue of Midstream Pulse. This is up slightly from the 3,447 wells connected during Q1 and relatively flat compared to 2Q22. The most active regions were the Permian with 1,435 new well connects, the Rockies with 694 and the Gulf Coast with 645. Among gas gathering operators, Targa Resources tallied the most new well connects to its systems at 610, followed by DCP Midstream with 345, Energy Transfer with 266 and West Texas Gas with 164. On the oil side, Plains All American hooked up the most wells to its gathering systems at 260, followed by NuStar Energy with 145, Medallion Midstream with 121 and Energy Transfer with 115.
By gas gathering system, the WestTex system owned by Targa had the most new well connects during the quarter at 251. DCP’s Permian Gathering system came in second at 172, followed by Targa’s South Carlsbad at 151 and Oneok’s namesake system at 150. All these systems serve Permian producers except Oneok’s, which primarily serves the Rockies region.
By oil gathering system, Medallion’s namesake pipeline had the most new well connects at 115 in Q2. Lotus Midstream’s Centurion Pipeline connected 69 wells for second place, and EOG Resources’ Eagle Ford East system added 60. Plains All American’s Alpha Crude Connector was the next highest at 55 wells. All these systems serve the Permian except EOG’s, which is on the Gulf Coast.
To see the full oil and gas gathering leaderboards, check out the latest issue of Midstream Pulse.
About Enverus Intelligence Publications Enverus Intelligence Publications presents the news as it happens with impactful, concise articles, cutting through the clutter to deliver timely perspectives and insights on various topics from writers who provide deep context to the energy sector.
CALGARY, Alberta (Nov. 8, 2023) — Enverus Intelligence Research (EIR), a subsidiary of Enverus, the most trusted energy-dedicated SaaS platform, has released its latest Fundamental Edge report, which focuses on global drivers for oil and gas prices through 2030, the five-year oil and gas supply and demand outlook, and price forecasts.
“EIR forecasts Henry Hub gas prices to be reach $5.00/MMbtu in 2025-26. We need high prices to summon Haynesville gas that feeds significant LNG export capacity growth,” said Al Salazar, report author and director at EIR.
“EIR expects Brent prices to trade in the high-$80s – low-$90s into 2024, due to OPEC intervention. The Saudis wish to take the cyclicality out of the market.”
Key takeaways:
EIR has upgraded its med-term gas price forecast to $5.00/MMbtu based on a significant amount of LNG export capacity slated to come online in 2025. However, EIR has also downgraded its long-term gas price forecast to $4.00/MMbtu due lower gas-fired generation given growth in renewables.
EIR remains bullish with its 2024 price expectations for Brent. The combination of strong Chinese demand, partially offset by weaker-than-expected consumption in the U.S., Middle East, Africa and Europe, combined with OPEC intervention, keeps prices in the current trading range.
About Enverus Intelligence Research Enverus Intelligence ® | Research, Inc. (EIR) is a subsidiary of Enverus that publishes energy-sector research focused on the oil, natural gas, power and renewable industries. EIR publishes reports including asset and company valuations, resource assessments, technical evaluations and macro-economic forecasts; and helps make intelligent connections for energy industry participants, service companies and capital providers worldwide. EIR is registered with the U.S. Securities and Exchange Commission as a foreign investment adviser. Enverus is the most trusted, energy-dedicated SaaS platform, offering real-time access to analytics, insights and benchmark cost and revenue data sourced from our partnerships to 98% of U.S. energy producers, and more than 35,000 suppliers. Learn more at Enverus.com.
The shift away from hydrocarbons and towards renewable and low-carbon technologies is not only changing the way we power our lives, but also offers a wealth of investment opportunities for those who can decipher the complex landscape. Traditional institutional investors looking to gain a competitive edge in this sector need a single source of truth to inform on market trends and new technologies to make the best long-term investments. In this blog, our Enverus Intelligence® Research (EIR) team delves into the winners and losers of the energy transition, shedding light on key insights that can guide your investment decisions.
(Winner) Regulated utilities and IPPS: The vanguard of the energy transition
Regulated utilities and independent power producers (IPPs) stand out as primary drivers of energy transition technologies, specifically as they work to increase their low-carbon power generation. These sectors provide the most exposure to a diverse array of renewable energy technologies due to the increased demand for clean power generation. While they have experienced some challenges, with only 2-3% sector revenue year-over-year (Y/Y) growth, their long-term potential remains robust as power demand expectations keep growing.
(Loser) Supply Chain and Regulatory Challenges in Renewable Technologies
While renewable energy technologies, including wind and solar manufacturers, have faced headwinds with a more significant 10% M/M decline, the root causes are clear. Supply chain challenges and regulatory uncertainties have hampered their growth. Geopolitical tensions – especially with China, a crucial manufacturing partner in renewables –add to the uncertainty. However, these challenges may be temporary, making it a sector to watch closely.
(Winner) Lithium: A key player in the energy transition
Lithium, a critical component in energy storage, has experienced a 10% quarter-over-quarter and a 56% Y/Y price drop to settle at a more sustainable level after supply increases eased imminent shortage concerns. Direct lithium extraction (DLE) is an energy transition technology that extracts lithium from produced water in oil and gas wells, therefore companies well positioned to capitalize on lithium’s role in the transition stand to benefit from both strong oil and lithium prices, making it a potentially attractive investment avenue. For more details check out our blog, “Securing domestic supply of lithium.“
(Tie) Energy security concerns: Large-caps and majors locking up inventory and strategic energy transition assets
While ExxonMobil’s recent acquisition of Pioneer ensures a longer inventory runway, the company’s acquisition of Denbury for their strategic CCUS assets also signals a clear message on how they are thinking about their role as an energy company through the energy transition. Companies are strategically locking up energy transition assets today to secure their place as an energy company over the next ten years. This heightened focus on energy security could create opportunities for savvy investors who can identify companies with robust strategies in this regard.
(Winner) CCUS: A growing sector with enormous potential
Carbon capture, utilization, and storage (CCUS) is a sector that has exhibited impressive Y/Y growth. The significant increase in research and development, investment and exponential revenue growth in this area makes it an exciting prospect for investors. As the world seeks to reduce carbon emissions, CCUS technology will play a pivotal role, and those invested early could reap substantial rewards. Be sure to watch our recent webinar, “Potentials and Challenges to Executing CCUS at Scale” and hear how current executives at the front lines of the CCUS movement are meeting the demands of challenges faced.
Why choose Enverus for in-depth research:
In this dynamic landscape of the energy transition, it is crucial to stay well informed to guide investment decisions. Enverus provides comprehensive energy transition solutions at every step:
Single source of truth within the energy transition: Enverus offers unbiased data and analytics to help you stay ahead of the curve and make informed investment decisions.
Expertise: Our EIR team is composed of energy experts across the industry to provide a comprehensive view from all levels of the industry.
Most coverage of renewable assets and companies: We cover 54,000+ renewable assets and companies, 150,000+ EV charging stations, 1,100+ generators and 9,300+ power constraints.
Customized reports: Tailored reports and analysis help you focus on the specific areas of the energy transition that align with your investment goals.
The energy transition is reshaping the energy landscape and providing unique investment opportunities for those who can navigate its complexities. As the distinctions between winners and losers become more evident, Enverus stands ready to be a reliable partner in your quest for valuable insights and research to empower your journey. Regulated utilities, lithium, energy security and CCUS are just a few examples of the avenues worth exploring, and Enverus can help you make the most of these opportunities.
Interested in learning more about how Enverus Intelligence® can help you? Fill in the form below:
*About Enverus Intelligence®| Research
Enverus Intelligence® | Research, Inc. (EIR) is a subsidiary of Enverus that publishes energy-sector research focused on the oil, natural gas, power and renewable industries. EIR publishes reports including asset and company valuations, resource assessments, technical evaluations, and macro-economic forecasts and helps make intelligent connections for energy industry participants, service companies, and capital providers worldwide. EIR is registered with the U.S. Securities and Exchange Commission as a foreign investment adviser. See additional disclosures here.
CALGARY, Alberta (Nov. 7, 2023) — Enverus Intelligence Research (EIR), a subsidiary of Enverus, the most trusted energy-dedicated SaaS platform, has released a new report examining various exploration and production (E&P) companies testing the Barnett Formation in the Midland Basin, including economic and productivity outcomes.
“Sometimes the best place to find new oil is in already-producing areas, which neatly describes what’s happening in the Midland Basin in Texas,” said Emily Head, report author and a senior associate at EIR.
“The Barnett formation is buried about 1,000 feet deeper than the Wolfcamp, a prolific oil-producing zone. This separation means companies owning deep drilling rights in the area can expand their inventories of well locations that break even below $50/bbl, an important metric for many investors,” Head said.
Key takeaways from the report:
Recent wells targeting the Barnett interval in the Midland Basin show higher oil recoveries and lower breakevens than other secondary zones, according to a new analysis from EIR.
Barnett wells drilled in the core of the Midland Basin average slightly higher oil rates than those drilled near its edges.
Vertical separation of more than 1,000 feet from the Wolfcamp D makes the Barnett a true inventory expansion opportunity for operators with deep drilling rights regardless of previous shallower development.
About Enverus Intelligence Research Enverus Intelligence ® | Research, Inc. (EIR) is a subsidiary of Enverus that publishes energy-sector research focused on the oil, natural gas, power and renewable industries. EIR publishes reports including asset and company valuations, resource assessments, technical evaluations and macro-economic forecasts; and helps make intelligent connections for energy industry participants, service companies and capital providers worldwide. EIR is registered with the U.S. Securities and Exchange Commission as a foreign investment adviser. Enverus is the most trusted, energy-dedicated SaaS platform, offering real-time access to analytics, insights and benchmark cost and revenue data sourced from our partnerships to 98% of U.S. energy producers, and more than 35,000 suppliers. Learn more at Enverus.com.
As we commence October, it’s crucial to examine the ever-evolving energy landscape from the past month. Our Enverus Intelligence® | Research (EIR) team has diligently dissected key trends and breakthroughs, delivering insightful and data-driven perspectives that empower you to make informed business decisions. By remaining vigilant and up to date, you’ll be strategically positioned to seize emerging energy opportunities as the present themselves. Dive into the latest insights and maintain a competitive edge in the dynamic energy market.
Bottoming activity leads to pricing stability (Oct. 27, 2023)
In EIR’s view, upstream activity has recently bottomed out, and they expect a sustained, albeit moderate, recovery through 2024. Consequently, horizontal rig utilization will return to >80% by year end and pressure pumping utilization, which is bolstered by retirements of older equipment, will remain >85%. Five pumpers now control ~75% of the pressure pumping horsepower, resulting in a more discipline sector this cycle by emphasizing per fleet profitability and minimizing lower margin wear on equipment.
A momentous shift in personal transportation (Oct. 19, 2023)
EIR anticipates a momentous shift in the automotive landscape, with the electric vehicle (EV) share of new sales across their covered regions reaching 68% by 2030 and an astonishing 91% by 2035. This transformation hinges on the broader adoption of affordable Chinese EVs in Asian, European and Australian markets. Equally important is the commitment of states that have embraced California’s Zero Emission Vehicle policy, as they must meet their pledged targets for EV sales. This vision also foresees a significant decrease in gasoline and diesel consumption in EIR’s covered regions, forecasting a reduction of approximately 3.5 million barrels per day by 2030 and 6.1 million barrels per day by 2035. The road ahead is electrifying, and we are poised for a monumental shift towards sustainable mobility.
Time to pay attention to Rockies gas (Oct. 6, 2023)
Rockies gas production, aside from associated gas growth in oil plays, has been declining since 2012. However, significant increases in well-level recoveries are evident in dry gas plays like Pinedale, Piceance, Jonah and the Uinta’s Natural Butte area. Strong recent realizations tied to west coast exposure paired with long-term inventory concerns in the Haynesville and an inability for Appalachian operators to grow meaningfully due to infrastructure constraints mean the Rockies gas plays demand increased attention.
Endorse the pivot towards the future by connecting with us on LinkedIn, becoming part of a conversation essential for the future-focused leaders in energy. In the month of November, EIR is poised to serve as your compass, decoding the intricate nuances of this change-ridden industry.
*About Enverus Intelligence®| Research
Enverus Intelligence® | Research, Inc. (EIR) is a subsidiary of Enverus that publishes energy-sector research focused on the oil, natural gas, power and renewable industries. EIR publishes reports including asset and company valuations, resource assessments, technical evaluations and macro-economic forecasts and helps make intelligent connections for energy industry participants, service companies and capital providers worldwide. EIR is registered with the U.S. Securities and Exchange Commission as a foreign investment adviser. See additional disclosures here.
2022 marked a significant milestone for renewable wind generation in North America. New wind capacity reached 14.7GW (gigawatts) from 93 projects, an increase from 2021 of 12GW from 54 projects. Looking to 2024, winds of opportunity show 55GW from a whopping 373 projects are expected to come online, though we know ongoing interconnection queue challenges continue.
Amidst the change, a select group of companies emerged as the driving force behind the shift towards cleaner wind power. This compilation introduces the top 10 wind development companies that brought the most megawatts online in 2022 in the U.S.
Source: Source: Enverus Foundations™ | Power & Renewables Project Tracking Analytics, projects by first power date
Northrenew Energy has emerged as a significant player in wind power development. Its unique approach involves harnessing wind data analytics to strategically position turbines, optimizing energy generation with a focus on precision.
Enel Green Power North America Inc. stands out in wind energy with a strong impact. Its distinctive approach lies in employing advanced aerodynamic designs for turbine blades, maximizing wind energy conversion efficiency.
EDF Renewable Energy specializes in the development, construction and operation of wind energy projects in North America. A unique aspect of the company is its holistic approach, which includes not only the generation of wind energy but also a strong commitment to community engagement and environmental stewardship throughout the project lifecycle.
EDP Renewables North America LLC is a notable contributor to wind energy development. Its unique edge comes from implementing predictive maintenance through IoT technology, ensuring the continued high performance and longevity of their wind turbine fleet.
Engie North America is a leading provider of renewable energy solutions, including wind and solar projects. Engie’s unique approach lies in its commitment to energy storage integration, leveraging cutting-edge battery technologies to enhance grid stability and maximize the benefits of renewable energy.
Apex Clean Energy is a leading renewable energy company specializing in wind and solar projects. What sets Apex apart is its community-centered approach, actively engaging local stakeholders and communities to ensure that its projects have a positive impact on both the environment and the people living near its installations.
Pattern Energy is a developer of wind and solar projects known for its dedication to environmental sustainability. The company has a strong emphasis on wildlife protection and habitat conservation, integrating responsible practices into its project development.
Clean Line Energy Partners focuses on developing high-voltage transmission lines to connect renewable energy sources, such as wind farms, to the power grid, enabling the efficient distribution of clean energy across regions. What sets Clean Line Energy Partners apart is its innovative approach to addressing transmission constraints, contributing to the integration of large-scale renewables and the advancement of sustainable energy infrastructure.
Invenergy is a trailblazer in wind and solar project development with a global presence. What sets Invenergy apart is its innovative approach to energy storage and grid solutions, fostering the integration of renewable energy with advanced storage technologies for a more reliable and resilient energy future.
A subsidiary of NextEra Energy, Inc., NextEra Energy Resources is a trailblazer in developing, constructing and operating renewable energy projects. Their contributions have played a pivotal role in expanding clean energy sources across the United States.
With the ongoing growth of the wind industry, the need for swift and assured data-driven decision-making has become increasingly paramount. Enverus provides analytics-ready data through an intuitive platform.
Enverus Power and Renewables provides solutions for the entire power and renewables lifecycle to help maximize your returns and optimize your asset value.
We help you at every stage of your project’s lifecycle – helping understand where you fit within the energy transition, finding the best project sites, engineering optimal project designs, optimizing asset operations and maximizing trading profits.
To view Project Tracking Analytics, request a demo below.
As a front office trader, you are well aware of the importance of timing for commodities trading. Staying on top of sharp price fluctuations can make or break your investments, and the last thing you want is to miss a valuable opportunity because you didn’t receive real-time updates. Just a few minutes can make a monumental difference. In this blog, we’ll explore the necessity of price alerts for front office traders and how implementing a reliable price alert service can help you excel when the stakes are high.
What are price alerts?
In simple terms, Price Alerts are real-time notifications sent to traders when a commodity’s price reaches a predefined threshold. A price alert service enables you to set customized alerts for the market products you trade, ensuring that you always stay up to date with the latest price movements. By integrating such a service into your trading strategy, you can make better investment decisions and capitalize on market opportunities without the need for constant manual supervision.
Different types of price alerts for commodities trading
A robust price alert service offers a variety of alert types to accommodate different trading strategies. For example:
Fixed threshold alert
Field comparison alert
Moving average alert
Value of using a price alert service
By incorporating a price alert service into your trading routine, you tap into the following benefits:
Immediate notifications: Stay informed about market opportunities as soon as the commodity price hits a preset threshold.
Customizability: Tailor alert types and parameters to suit your unique trading strategy.
Advanced trading strategies: Utilize moving average alerts and other alert types to generate buy and sell signals.
Reap the benefits of pricing shifts with Enverus Trading and Risk
In the rapidly shifting world of commodities trading, keeping pace with real-time market trends can be a complex task. Understanding this, we’re excited to announce the launch of Enverus Trading and Risk’s Price Alert Service, a ground-breaking tool tailor-made for front office traders.
Our state-of-the-art service guarantees that you’ll stay updated on key price movements, equipping you with the insights you need to make data-driven decisions swiftly. With this cutting-edge tool at your disposal, you can get real-time price alerts through mobile notifications and emails, ensuring you never miss out on key market shifts.
To unlock your full trading potential and start leveraging the powerful benefits of the Enverus Trading and Risk Price Alert Service, all you need to do is fill out the form below.
In the United States, the adoption of solar photovoltaic (PV) technology continues to rise, following recent market investment from the Inflation Reduction Act. The U.S. Energy Information Administration reveals that in 2022, approximately 10.9 GW (gigawatts) of new solar PV capacity became operational, a 19% decline from 2021, largely attributed to supply chain challenges.
According to Enverus Foundations™ | Power & Renewables Project Tracking Analytics, this trend of capacity deployment is projected to continue its upward trajectory. This growth is propelled by the comparatively lower cost of generating electricity from solar PV when compared to other alternative energy sources, and by companies diversifying their energy portfolios across different sources. It is worth noting that the forces of energy evolution will play a significant role in influencing future growth.
As the overall production from solar PV continues to expand, so does the potential for investment opportunities. Below, you’ll find a list of the top 10 U.S. solar developers ranked by total capacity (in megawatts) they pushed into operational status in 2022 as of October 2023, available through the Enverus Foundations™ | Power & Renewables:
Source: Enverus Foundations™ | Power & Renewables Project Tracking Analytics, top 10 solar developers in 2022
Out of the projects these top 10 developers brought into operations. Majority of the MW’s were in ERCOT as image below shows. MISO, PJM, and CAISO were next markets that these developers focused on.
Source: Enverus Foundations™ | Power & Renewables Project Tracking Analytics, top 10 solar developers (2022)
Now, lets take a look at what these developers have in the queue for the next few years. The top 10 solar developers in 2022 seems like they also have a good amount of MW’s in the queue right now. The first image shows the aggregate MW’s these developers have in the queue right now.
Source: Enverus Foundations™ | Power & Renewables Project Tracking Analytics, Queued projects for top 10 solar developers (2022)
ERCOT was the main market these developers brought their projects operational into in 2022. Their queued projects follows the same trend with ERCOT hosting the majority of the MW’s as the image below shows. MISO, PJM and NYISO follows ERCOT as the next three major markets for the permitted projects.
Source: Enverus Foundations™ | Power & Renewables Project Tracking Analytics, Queued projects for top 10 solar developers (2022)
As we look into when these projects are expected come on line with the image below, majority of the projects have a 2024 and 2025 first power date (COD). The image shows that there is already a substantial amount of MW’s under construction to become operational in 2024 and 2025. It will be interesting to see, how much more capacity by these developers can become operational in the next 2 years as the queue back-logs are becoming a real problem.
Source: Enverus Foundations™ | Power & Renewables Project Tracking Analytics, Queued projects for top 10 solar developers (2022)
A subsidiary of NextEra Energy, Inc., NextEra Energy Resources is a trailblazer in developing, constructing and operating renewable energy projects. Its contributions have played a pivotal role in expanding clean energy sources across the United States.
Cypress Creek Renewables is a solar energy company with a significant portfolio of projects across the United States. Notably, Cypress Creek Renewables has a strong community engagement strategy, partnering with local stakeholders to ensure that its solar installations align with community needs and values.
Recurrent Energy is a prominent solar project developer known for its expertise in utility-scale solar installations. The firm is focused on innovative financing solutions, enabling it to deliver cost-effective solar power projects to communities and businesses.
AP Solar Holdings LLC made a mark with its noteworthy solar capacity additions in 2022. Notably, its distinctive approach involves collaborating with educational institutions to create solar installations that not only generate clean energy but also serve as educational platforms for the next generation of renewable energy enthusiasts.
Savion made waves in the solar development arena, contributing significantly to the U.S. megawatt surge. Its unique contribution lies in its focus on repurposing underutilized land and transforming it into productive solar farms, showcasing their commitment to sustainable land use practices.
Lightsource BP solidified its position as a solar industry leader by adding an impressive 451 megawatts online in the US. Distinguished for their global footprint, they stand out with their integrated approach, seamlessly combining solar projects with battery storage solutions for enhanced reliability.
A stalwart in the energy landscape, Florida Power & Light Company brought substantial solar megawatts online. Notably, its commitment extends to innovative solar research, including advanced technologies that enhance solar efficiency in hot and humid climates.
Silicon Ranch Corporation emerged as a solar power leader, ranking in the 2022 megawatt race. Its unique approach includes establishing solar projects in close collaboration with local communities, fostering sustainable development and widespread support for renewable energy.
EDF Renewables North America is a market-leading independent power producer and service provider with over 35 years of experience. The Company delivers grid-scale power: wind (onshore and offshore), solar photovoltaic, and storage projects; distribution-scale power: solar and storage; asset optimization: technical, operational, and commercial expertise to maximize performance of generating projects, and onsite solutions, through the Company’s PowerFlex affiliate, offering a full suite of onsite energy solutions for commercial and industrial customers: solar, storage, EV charging, energy management systems, and microgrids.
National Grid Renewables, part of the competitive, unregulated National Grid Ventures division of National Grid (NYSE: NGG), develops, owns and operates large-scale renewable energy assets across the United States, including solar, wind and battery storage. As a farmer-friendly and community-focused business, National Grid Renewables develops projects for corporations and utilities that seek to repower America’s electricity grid by reigniting local economies and reinvesting in a sustainable, clean energy future. National Grid Renewables has a robust development pipeline of wind, solar and battery storage projects in various stages of development throughout the United States, as well as geographically diverse operational assets across the country. It supports National Grid’s vision of being at the heart of a clean, fair and affordable energy future for all.
Emission intensities in the U.S. upstream sector dropped by 15% since 2020, based on the latest 2022 EPA FLIGHT data released in early October. Absolute annual emissions fell from 97.2 to 88.5 million metric tonnes (Mt) CO2e over the same period, mainly driven by decreases in venting and flaring emissions.
However, even after the decreases, six of the top-producing basins would have on average breached the proposed 0.20% upstream intensity threshold for the IRA’s methane fee: the DJ, Western Gulf, Anadarko, Williston, Fort Worth and San Juan. EIR expects continued progress toward methane reduction targets will help to minimize the fee’s impact on operators from 2024 onward.
EIR’s extra detailed source category helps to pinpoint the core drivers behind the industry’s emissions progress. To learn more about the leaders and laggards at a basin, play and operator level, please contact [email protected].
Highlights from Energy Transition Research
Gas-fired power generation – The flickering flame – Energy Transition Research’s view on the levers that will significantly impact power burn over the next seven years.
Prism Signal – Methane reduction drives U.S. GHG emissions decline – This Prism Signal takes a closer look at the latest reported GHG emissions in the U.S., tracking the upstream sector’s progress from 2020 to 2022 based on the latest EPA FLIGHT data released in early October.
Summoning Haynesville – This month’s FundamentalEdge reveals our upgrade to 2025-26 natural gas price expectations because of the need to summon ~7 Bcf/d of gas supply to feed LNG requirements and existing demand.
Energy is changing. Connect weekly with the ideas that are leading the way.
About Enverus Intelligence®| Research Enverus Intelligence® | Research, Inc. (EIR) is a subsidiary of Enverus that publishes energy-sector research focused on the oil, natural gas, power and renewable industries. EIR publishes reports including asset and company valuations, resource assessments, technical evaluations, and macro-economic forecasts and helps make intelligent connections for energy industry participants, service companies, and capital providers worldwide. EIR is registered with the U.S. Securities and Exchange Commission as a foreign investment adviser. Click here to learn more.
EOG Resources is arguably the largest customer in the U.S. onshore oilfield services industry, leading all E&P companies in feet drilled, average rig count and wells completed, and finishing second in frac fluid pumped during Q2, according to an analysis using Enverus Core data presented in the most recent issue of Oilfield Pulse. EOG held those same spots in Q1. However, one of October’s two $60 billion acquisition agreements could propel a supermajor to the top.
Houston-based EOG drilled 3.85 million ft and 204 wells in Q2, roughly 540,000 ft more and eight more wells than in Q1. With assets across the Permian, Rockies, Appalachia and Eagle Ford, the company also has a “large bench of low-breakeven inventory [that] exceeds most large-cap peers,” Enverus Intelligence® | Research said in an Operator Profile last June.
Occidental Petroleum was in second place by feet drilled with 2.81 million. While Oxy drilled 470,000 ft more in Q2 than it Q1, it remains just over 1 million ft behind EOG’s totals.
EOG probably has a few more months at the top until ExxonMobil Corp. closes its $64.5 billion purchase of Pioneer Natural Resources in 1H24. The largest corporate acquisition in the U.S. upstream oil and gas since Exxon bought Mobil in 1998, the deal unites Q2’s sixth- and fourth-largest U.S. land drilling customers, with a combined Q2 total of 4.43 million ft. Pioneer also pumped the most fracking fluid in Q2, and ExxonMobil trailed only Pioneer and EOG. The Pioneer-ExxonMobil combined total of 131.9 MMbbl of frac fluid in Q2 is 86% higher than EOG’s total.
The other recently announced megadeal, Chevron Corp.’s $60 billion acquisition of Hess Corp., would have had less of an impact on the rankings. While Chevron was the third-most active driller by footage in Q2, Hess was in 16th place. Pioneer is focused on the Midland Basin, whereas Hess divides its capex among the Bakken, the Gulf of Mexico and a non-operated stake in Exxon’s Guyana assets. In pressure pumping demand, Chevron was fifth in barrels of fluid pumped while Hess was 42nd.
EOG’s drilling rigs are primarily operated by the three most active drilling contactors in the U.S.: Helmerich & Payne, Patterson-UTI and Nabors Industries. Those three—as well as the rest of the top six drilling contractors—retained their Q1 positions in the Q2 rankings. H&P remained on top by a wide margin as its total drilled footage declined by just 1% in Q2 even as its average rig count slid to 164 compared with Q1’s 182. Patterson-UTI remained in second even though it was the only contractor in the top 10 to see its active rig count and footage rise from Q1, by two rigs and 125,000 ft.
Halliburton remains the most active fracking contractor by barrels of fluid pumped, proppant pumped and well count, followed by Liberty Oilfield Services, ProFrac Services and NexTier Oilfield Services. The top three pressure pumpers posted increases from Q1 in all three categories, with Halliburton using 11% more barrels and 8% more proppant and working 13% more wells. Fracking activity tends to lag drilling activity, so the pressure pumpers are likely to reflect Q2’s declining rig count when Q3 data is compiled. ProPetro remained in fifth place in barrels and proppant pumped, but its activity slid in Q2 by 34 MMbbl and 1.6 MMlb.
To see the full drilling and fracking leaderboards for both contractors and their clients, check out the latest issue of Oilfield Pulse.
About Enverus Intelligence Publications Enverus Intelligence Publications presents the news as it happens with impactful, concise articles, cutting through the clutter to deliver timely perspectives and insights on various topics from writers who provide deep context to the energy sector.
Advances in oil and gas order management software continue to create new and valuable opportunities for operators to reduce project delays and overspending along the procure-to-pay process, from touchless invoicing to digital field ticketing to procurement workflow automations and beyond. And while digitalizing and automating each of these parts of the procure-to-pay process has proven to add value to oil and gas companies of all sizes, today we’re going to focus on how digitalizing and automating oil and gas procurement workflows can help your team overcome common challenges.
Current challenges in oil and gas procurement
Automating oil and gas order management workflows has the power to relieve oil and gas companies of many headaches along the procure-to-pay process. Energy companies continue to manage the procurement process using tedious, manual workflows that result in the same issues over and over — limited visibility to accounting teams on committed spend, duplicate invoices and payments, delayed payment to suppliers, manual verification and matching of documents, to name a few.
For operations, this could mean missing your bonus because the lack of spend reporting caused the project to go way over the budget. For supply chain teams, this could mean purchasing happens outside of pricing agreements. Accounting teams face dreaded, time-consuming manual processes like the three-way match and invoice approvals.
Tracking goods and services using paper documents is challenging and often creates poor spend visibility.
While these pain points are enough to drive these teams crazy, there’s an unsatisfied resignation that this is how things are for two reasons.
1) Different companies have their own ways of managing and documenting this process, so there isn’t one solution flexible enough to meet everyone’s unique needs.
2) The existing procurement solutions used by our industry today are either:
Not solutions, but a combination of email and spreadsheets used to manage oil and gas purchasing.
Not designed for the energy industry’s unique procurement needs.
Introducing streamlined, efficient ordering with OpenOrder
The new OpenOrder order management software solution by Enverus allows oil and gas buyers to create, dispatch, track and manage digital purchase orders and work orders throughout the entire procure-to-pay process. This solution integrates seamlessly with OpenInvoice, OpenContract PriceBook and OpenTicket, allowing you to manage the order-receive-invoice process in one platform while ensuring consistent coding (cost objects and GL codes). This means you can reference the orders to both field tickets and invoices, saving significant time with automated compliance checks and three- and four-way matches. Also, automating your three- and four-way matching allows you to make automatic invoice payments without manual intervention.
OpenOrder is also less expensive than using multiple systems. By managing ordering on the OpenInvoice network, which connects more than 380 E&P and midstream companies and 35,000+ active suppliers, it’s much easier and faster to collaborate with your connected suppliers. Buyers and suppliers transacting in the same environment results in better communication, more transparency and fewer processing delays.
Watch this brief demo video to see the OpenOrder experience.
How OpenOrder creates time savings for every group involved in the procure-to-pay process
Improve procurement control: Procurement and supply chain teams can monitor and regulate job callouts and purchases with robust ordering and approval entitlements and automatic compliance.
Optimize spend: Digital order management enables oil and gas operations teams to track incurred and accrued costs and leverage advanced spend data analytics to identify future cost saving opportunities.
Centralize and streamline dispatch: Operations teams can easily keep projects moving on time by managing the match and dispatch process in a single platform.
Automate billing: Automate your billing workflow and compliance checks from ordering to invoicing for easy three- and four-way matching between contracts, orders, receipts and invoices, saving accounting teams significant time processing invoices for payment. By eliminating payment delays, companies can pay suppliers on time, creating better supplier relationships.
OpenOrder process flows for oil and gas order management
Success in the field: How Grayson Mill Energy leverages Enverus procurement automation software to optimize operations
Grayson Mill Energy, currently using OpenOrder, OpenInvoice, OpenTicket and OpenContract PriceBook, uses POs for inventory items and engineering services. Their main driver with OpenOrder was capturing procure-to-pay and automating the three-way match to create lean, efficient operations.
“On other systems, a three-way match is hard to execute. With OpenOrder, we had all the back info – well ID, supplier info, etc. When you have a PO with approval and coding up front, it’s much easier to validate with the goods receipt. When the supplier submits the invoice, there’s your match all in the same system, in one place. It really automates your approval process,” said Mary Atkinson, the director of supply chain at Grayson Mill Energy.
With OpenOrder, we have all the information, and it all matches. —Mary Atkinson, Supply Chain Director, Grayson Mill Energy
Enhancing the oil and gas procurement experience
Watch this customer panel session on demand today to hear how oil and gas operators are leveraging new technology to streamline their ordering processes.
Regain your sanity with oil and gas procurement and order management
If the definition of insanity is doing the same thing but expecting different results, OpenOrder will bring the sanity back to your procure-to-pay process. You won’t have to work in your cumbersome ordering system that creates manual work, confusion and frustration. Instead, you’ll be trying something different and, we believe, you’ll experience different, better results.
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CALGARY, Alberta (Nov. 1, 2023) — Enverus Intelligence Research (EIR), a subsidiary of Enverus, the most trusted energy-dedicated SaaS platform, has released a new report with an updated view on electric vehicle (EV) adoption across its coverage regions (U.S., OECD Europe, OECD Asia, India and China). In the report, EIR explores the impacts of EV adoption, lithium demand and the potential for battery recycling to expand as an industry.
“Increasing EV adoption, driven by cheaper Chinese EVs penetrating global markets and compliance with California’s Zero-Emission Vehicle (ZEV) policy, is just around the corner and led EIR to revise its outlook. This boost in confidence is primarily due to surpassing expectations in China and Europe and a decrease in long-term fleet size assumptions, said Carson Kearl, senior associate at EIR.
“EIR predicts a substantial 3.5 MMbbl/d reduction in gasoline and diesel consumption by 2030 in its covered regions and we are optimistic about North American lithium suppliers, particularly those with prime acreage positions, and battery recycling companies poised to benefit from the surge in EV sales and the resulting influx of used batteries.”
Key takeaways:
EIR expects the EV share of new sales across its covered regions to reach 68% by 2030, up from 59% previously. For this to come to fruition, cheaper Chinese Evs must penetrate broader Asian, European and Australian markets. Additionally, states that have signed on to California’s Zero-Emission Vehicle (ZEV) policy must meet their pledged targets for EV sales.
This upgrade in EIR’s outlook is largely driven by an outperformance of Chinese and European adoption expectations from last year’s view, in addition to some downward revisions in long-term fleet size assumptions.
EIR expects gasoline and diesel consumption in its covered regions to decrease by ~3.5 MMbbl/d by 2030 from the 2019 peak of 19.5 MMbbl/d.
EIR is positive on North American lithium suppliers, specifically direct lithium extraction players that have positively differentiated acreage positions compared to their peers. Additionally, battery recycling companies stand to benefit from the uptick in EV sales driving demand for recyclable materials from the avalanche of used batteries expected to follow.
About Enverus Intelligence Research Enverus Intelligence ® | Research, Inc. (EIR) is a subsidiary of Enverus that publishes energy-sector research focused on the oil, natural gas, power and renewable industries. EIR publishes reports including asset and company valuations, resource assessments, technical evaluations and macro-economic forecasts; and helps make intelligent connections for energy industry participants, service companies and capital providers worldwide. EIR is registered with the U.S. Securities and Exchange Commission as a foreign investment adviser. Enverus is the most trusted, energy-dedicated SaaS platform, offering real-time access to analytics, insights and benchmark cost and revenue data sourced from our partnerships to 98% of U.S. energy producers, and more than 35,000 suppliers. Learn more at Enverus.com.
This isn’t a value point you’d see in a typical software brochure. But it’s something a customer shared with us a few years ago.
Turns out, this customer was the only accounts payable manager at her job with an independent oil and gas operator. Before her company had implemented digital invoicing with OpenInvoice, she’d been processing so many paper invoices every day that she would arrive home late at night, miss dinner with her family and not get to put her kids to bed. Her husband was not happy.
If you’re not familiar with OpenInvoice, it’s currently the best solution on the market to fully automate your AP/AR workflows with touchless invoicing, from invoice creation to approval.
We hear similar statements from other small- and mid-sized operators that make the move from paper invoices to digital invoices with OpenInvoice. They love the software because it saves them crucial AP hours by significantly shortening the time it takes to process invoices.
Is your upstream business exploring software to digitalize your operations? More specifically, are you thinking about making the leap from managing your AP on paper and spreadsheets to digital invoices?
If you’re an upstream business exploring software to digitalize your operations or thinking about making the leap from managing your accounts payable on paper and spreadsheets to digital invoices, this blog post is for you. In it, we will cover why OpenInvoice is the best solution for upstream operators and how it will improve your operations.
Why OpenInvoice versus other digital invoicing solutions?
1. OpenInvoice is built specifically for upstream operations of all sizes
Non-industry-specific accounting solutions are requisition based. Materials are a known quantity and spend is tracked via purchase orders. This might make sense for many industries, but oil and gas isn’t like other industries. Oil and gas is different, and it requires different solutions.
So much of the work that is done in upstream oil and gas is outsourced to service providers. In fact, 80% of upstream spend is on services. With services, you don’t know the time required and materials used until after the job is done. Suppliers document the completed work on a field ticket, and once the ticket is approved by the field supervisor, the supplier creates and submits the invoice for payment. Upstream spend is documented and tracked from the invoice, and this is exactly what OpenInvoice is built to do.
2. Enjoy quick onboarding for operators and suppliers
We’ve mentioned that OpenInvoice has features that are fit for purpose for oil and gas, like routing and approval workflows, and the platform itself is made to make communication between suppliers and operators easily trackable in system. However, we would be remiss to not address one of the most challenging things about implementing new software – training people on how to use it properly.
The great thing about OpenInvoice that is unique in the software space is it has been around for about 22 years and 38,000 suppliers across North America are already submitting invoices to their other customers on the platform, so it is highly likely that many of your suppliers are already using the system with other operators. For small- and mid-sized upstream operators, this means not needing to dedicate valuable (and, oftentimes, limited) resources to onboarding your suppliers. And for any suppliers who are not already on the network, the Enverus team has strong relationships across the oilfield so we can help get them onboarded quickly and with ease.
Often, when we run a vendor match for new customers, we see that an average of 70% of suppliers are already transacting on OpenInvoice. This means you can expect to only need to onboard 30% of your suppliers, so you can enjoy a quick implementation process and reap the benefits of digital invoicing, such as time savings, very quickly. For example, when Grayson Mill Energy, a private equity-backed exploration company, implemented OpenInvoice in 2021, the company reached a 97% digital invoice submission rate in only two months!
As you can see, access to the OpenInvoice network of suppliers significantly speeds up the invoice process for oil and gas operators. Other digital invoicing solutions are not connected to such a robust supplier network, so if you go this route you can expect to experience a longer onboarding and implementation period before you’re up and running.
3. Set your business up to scale
For some operators, keeping operations small is a purposeful and strategic business decision. For others, the goal might be to scale the business over the next five years.
If your goal is to scale your operations, OpenInvoice is a great option because it is a fully cloud-based SaaS solution, meaning it easily scales according to your changing business needs.
We often see operators grow overnight via mergers and acquisitions. These operators realize that the only way to successfully scale for such rapid growth without slowing down field operations or losing track of spend is to fully digitalize their procure-to-pay processes, from order to invoice, so they can start automating time-consuming and error-prone manual work.
Enverus offers other source-to-pay solutions that are purpose-built for oil and gas that integrate with OpenInvoice so you can easily digitalize and automate additional back-office processes, such as procurement and ticketing. This means that as your business grows, you can continue to expand this technology footprint.
In fact, this is exactly what happened to Grayson Mill Energy (GME) when they acquired Equinor’s assets (242,000 acres and ~48,000 BOE/day) in the Williston Basin.
Recognizing that automating manual processes was a key driver to scale quickly, GME implemented OpenInvoice and OpenContract PriceBook first, digitalizing their price books and invoices at the same time. Since OpenContract PriceBook automatically validates the pricing on invoices, this removed the need to manually compare pricing.
Then they added OpenTicket, which allows suppliers to create and submit digital field tickets for approval. Using OpenTicket together with OpenContract PriceBook and OpenInvoice enables pricing on field tickets to be validated against the corresponding digital price book, making it easy for a production foreman to approve tickets quickly and accurately. This enables automatic invoice approvals, meaning AP personnel no longer need to approve every invoice because the price has already been validated with the approved field ticket. This automatic invoice approval option is used by many operators to speed up the invoice approval process and remove the burden of time-consuming manual processes.
This goes back to the story we shared at the beginning of this blog post about OpenInvoice saving a marriage. It doesn’t matter if you are a small business or a supermajor – the time saved by going from paper invoices to digital invoicing is a game-changer. Period.
Discovery Natural Resources is a prime example of this. They automated 40% of their invoice volume with digital invoicing and estimate a weekly time savings of 30-50 hours thanks to automatic invoice approvals. Check out the customer story here for all the details.
Conclusion
We’re not saying that we can solve all your marriage woes, but we can get you to a point where you’re spending more time with family and less time tracking down invoices or sweating over rogue spend.
In case you needed more convincing, here are a few additional points to consider:
Leverage an unmatched (and growing!) oil and gas supplier network. In addition to thousands of active suppliers already using our platform, we’re adding around 5,000+ new suppliers per year.
Streamline your accounts payable workflow with software specifically made to meet the needs of the energy sector. Unlike other solutions, OpenInvoice manages service callouts, material purchases and purchase orders on the same platform.
Embrace a cloud-based solution, customized to your business. OpenInvoice integrates with 30+ ERP and digital field ticketing platforms, allowing for unparalleled customization and seamless integration into your current product stack – all facilitated by our dedicated customer success team.
Taking the first step toward fully digitizing your AP workflow has never been easier – some of your suppliers might already be using OpenInvoice! So, if you’re ready to join the 400+ E&P and midstream companies and 38,000+ active suppliers using OpenInvoice today, schedule a free demo by filling out the form below.
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