2018 Midstream Texas Conference Highlights


2018 MIDSTREAM Texas Conference and Exhibition Overview with Jessica Morales, Video Correspondent, Hart Energy




Hart Energy spoke with several leaders during the 2018 MIDSTREAM Texas conference in Midland about challenges facing the Permian Basin as well as the prolific Basin’s benefits.

Cindy Jaggi, senior VP of strategic process transformation at EnLink Midstream, said the biggest positive for the Permian is its rock.  “It’s just a really prolific area,” Jaggi told Hart Energy.  Another benefit is “that it is a very oil and gas friendly community and environment.” 

Throughout the conference, concern over takeaway issues and how that might affect the market was a consistent theme, said Jim McTasney of Exterran Corp.  “(It) is really valuable to hear and really dig into the details,”  McTasney told Hart Energy. “There are definitely opportunities to step up and fill some of these gaps.” 

Porter Bennett, co-founder and CEO of B3, believes water management is the bigger challenge. “Whether it's right or wrong there's an assumption that it’s a zero-sum game. If the oil and gas industry uses water here, it’s not available to grow crops,” Bennett said, adding that he expects this belief will be proven untrue.  “Recycling, a lot of the reclamation work that the industry is developing, is going to produce the amount of freshwater needed,” he said.

While the industry certainly faces challenges in the Permian Basin, morale remained high.  The pace of activity has picked up and those working the area are optimistic they'll solve the issues.


Opportunity Grows For US Oil Export Market


SemGroup Corp. is seeing significant growth from its transformation to serve the export markets as U.S. oil exports hit a new high, the company’s executive Blake Trahan told MIDSTREAM Texas conference attendees in Midland, Texas.


U.S. oil exports have surged since a decades-long ban on them was lifted late in 2015. Trahan, vice president of SemGroup’s Houston Fuel Oil Terminal Co. (HFOTCO), described the transformation of HFOTCO from a focus on fuel oil to crude oil.


Occupying over 330 acres the Houston Ship Channel, HFOTCO provides crude oil, residual fuel oil, feedstocks and refined products terminal storage services. Despite its roots in fuel oil, the terminal’s current crude oil expansion will increase its overall tank storage capacity to 18.25 million barrels.


MIDSTREAM Texas Networking

MIDSTREAM Texas Exhibit Floor June 6, 2018. 

Water Management Panel 


Meanwhile, panelists on a water management roundtable discussed where the opportunities are as the midstream water sector matures.  John Durand, president and CEO WaterBridge Resources LLC, said as the segment evolves, the industry will see a difference between an oilfield services model and the midstream water model.


Water infrastructure will need to be funded by long-term contracts, said roundtable panelists Porter Bennett, co-founder and CEO of B3.

MIDSTREAM Texas Audience

MIDSTREAM Texas Conference Audience June 6, 2018.

Alpine High 

U.S. shale producer Apache Corp. is feeling the stress of insufficient infrastructure as it develops its Alpine High Field in the Permian's Delaware Basin, said Robert Bourne, vice president of business development for the company's midstream and marketing group.  Apache had the good fortune of discovering Alpine High—one of the biggest new Texas plays — in September 2016. The find includes a dry gas play more than 1,000 highly economic locations and an even larger wet gas play with more than 3,500 highly economic locations. 


However, Apache now faces the herculean task of also developing a greenfield midstream system to move the play’s abundant wet-gas production to market

Keynote Speaker, Bill Ordemann

Keynote Speaker: Bill Ordemann, Executive Vice President, Enterprise Product Partners LP - June 6, 2018