Hey Tuba, natural gas question

[1stTimeCaller]

Those wells that are being drilled in SE OK. Does all of that get piped to the gas processing facility in Maysville? If not where does it get piped to?

TIA

[OUinFLA]

I assumed you had beans for dinner again.
Silly me.

[OklahomaTuba]

Those wells that are being drilled in SE OK. Does all of that get piped to the gas processing facility in Maysville? If not where does it get piped to?

TIA

I suspect most of the NG in SEOK is distributed by Koch's old pipeline to a gathering facility here in state to avoid tax and environmental issues, however I don't know that for sure, its just a guess on my part.

[1stTimeCaller]

cool. would that gathering facility probably be in Maysville or is there more than one in OK?

[OklahomaTuba]

I will look it up and see what I can find.

I know ONEOK owns several in the area, just not sure how many. Williams, Koch, SemGroup, Magellian, Sun, etc may own some more.

I will see what I can find out.

[1stTimeCaller]

Thanks. I was just curious about that end of the game. Driving through there (Maysville) I think I've seen Sun, SemGroup, and ONEOK logos.

Do companies like StMary's, Devon, Chesapeake etc. sell the gas that they get out of the ground to companies like ONEOK, Sun, SEMGroup etc.?

I just don't know how that part of the business works.

Thanks again.

[Skysooner]

1tC,

It all depends on whether those companies have pipelines in the area. Some companies strictly process oil (i.e. refineries). Of those that process oil, some truck haul the oil and others have pipelines. As operators, we look at which company is going to pay us the highest amount for our oil in a given area. Generally it is best to sell to a pipeline. Natural gas can't be transported by truck from a location, so you are usually beholden to the nearest pipeline. The pipelines aren't necessarily required to take the gas that you want to sell. Sometimes we build our own pipelines to another gas pipeline miles away just because they will pay more. It becomes a simple question of economics. When I was at my last company (rather large natural gas company in OKC), we had to shut-in wells in western Texas because of the hurricane that hit the Houston area (since that is where the processing plant is at).

At least now I know where you are working. You are probably doing wells for either Devon or Chesapeake. My company is about to get active there in the Woodford Shale.

[1stTimeCaller]

While drilling the Woodford I was working for Newfield, Devon and St Mary's. I'm now on the Barnett and it's for Devon too.

there's a lot of pipeline construction in SE OK right now where I was working. That being Stuart and the Coalgate area.

[Skysooner]

Devon was my old company. A company owned by a family that has an OU center in Tulsa named after them is my new one.

[SoonerBorn68]

HA HA, Biznachos! We TD'd tonight & I'll get going home in about 12 hours!

Hopefully just in time for drunkytown.

[1stTimeCaller]

joke's on you. well, not really. I hope you get to sit at the house for a few days and enjoy the awesomeness that is a porcelain terlit.