The Saudis could have also as easily floated the rumor as a trial baloon.

Not Houston, but still pretty interesting info out of Fort Worth: https://fortworthreport.org/2022/11/21/fort-worth-energy-firm-founded-by-xto-leader-files-to-take-company-public/

Gonna be tough. Alot of wellbores but imagine the market will watch closely.

Ogre09 said:

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Quote:

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Although the root cause of the failure has yet to be confirmed, preliminary evidence suggests that an isolated pressure safety valve created an overpressure situation in 300 feet of vacuum insulated piping. The 300 feet of pipe was subjected to an overpressure situation which burst the pipe and allowed LNG and methane to be released into the facility. The sudden release of LNG and methane from the piping caused a subsequent explosion and fire that damaged piping and components in the plant. At PHMSA's direction, Freeport engaged a third-party consultant, IFO Group, to conduct a root cause failure analysis (RCFA) of the explosion and subsequent fire and release of LNG.

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From the PHMSA report I posted.

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report summary is out now:

https://www.prnewswire.com/news-releases/freeport-lng-provides-summary-of-root-cause-failure-analysis-report-on-june-8-incident-301679343.html

Quote:

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Direct Cause

• Isolation of a piping segment containing cryogenic liquefied natural gas (LNG) without proper overpressure protection, which LNG then warmed and expanded due to exposure to ambient conditions, resulting in a boiling liquid, expanding vapor explosion, or BLEVE, and the rupturing of the piping segment.

Root Causes

• Pressure safety valve (PSV) testing procedure and car seal program deficiencies;
• Failure to repurpose temperature indicator alarms used for cool down operations during commissioning on LNG piping that could warn operators of increasing temperatures in LNG piping during operations; and
• Operating procedures that allowed operator discretion to close valves that could allow LNG to be isolated in a piping segment.

Contributing Causes

• Failure of 2016 Hazard and Operability study to evaluate the potential for a blocked-in LNG piping segment with inadequate overpressure protection;
• Failure to utilize management of change process for revisions to tank management operating procedures;
• Failure to accurately and timely diagnose sudden pipe movement as being due to piping stresses from the overpressuring of an adjacent piping segment; and
• Operator fatigue as a result of significant overtime needs.

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a mixture of the usual failed barriers

Most of those things are adequate until they're not. To me it's an issue of individual(s) not recognizing a hazard as they created it. Procedures abd policies are important, but there's no substitute for training, knowledge, good judgement, and experience.

Between this and BKV, we will have an interesting data point for entering the public markets.

BREAKING NEWS

GHANA HAS ORDERED LARGE GOLD MINING COMPANIES TO SELL 20% OF REFINED BULLION TO THE NATION’S CENTRAL BANK

This is what inevitably happens.

— Gold Telegraph ⚡ (@GoldTelegraph_) November 25, 2022

Strategy is to buy oil with gold. We'll see how this all shakes out.

Chevron allowed to produce and import Venezuelan oil but given the payment restrictions it will be interesting to see how this plays out.

https://www.cnbc.com/2022/11/26/us-issues-expanded-license-to-allow-chevron-to-import-venezuelan-oil.html

Welp, looks like refilling the SPR will start soon with this price action, right?

All gains in price for the year gone.

This type of price action is going to drastically impact new investment, A&D markets to get assets into hands of people that will invest vs. harvest cash flows setting up further pain in 2023 forward.

We have significant under investment in the sector and some of these distorting short term actions (SPR, Price Cap to no where, Venezuela headline) are not doing any favors to the future economy.

Cyp0111 said:

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The biggest problem I see is you're going to run off spare capacity, SPR and get yourself into a position that if/when market conditions improve you're going to be short bbls without ability to blunt a price spike.

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Exactly. Everything distorting the price of oil right now is just going to make supply even more inelastic and consequently the price more spiky. This is adding acceleration terms to the future price of oil.

one MEEN Ag said:

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Cyp0111 said:

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This type of price action is going to drastically impact new investment, A&D markets to get assets into hands of people that will invest vs. harvest cash flows setting up further pain in 2023 forward.

We have significant under investment in the sector and some of these distorting short term actions (SPR, Price Cap to no where, Venezuela headline) are not doing any favors to the future economy.

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Yup. The biggest issue is the SPR releases from 2020 to now. The message is loud and clear: the federal government will cap your profits on upswings (selling SPR), but won't aid your losses on downswings (buying SPR).

So I'm not surprised that operators are slow to bring on more capacity. They're getting absolutely screwed in the marketplace. Especially since all it takes is China deciding whether or not to imprison their whole country to swing the price of oil $20.

Just like covid lockdowns, this is just delaying the inevitable. When China decides to be open for business or the SPR is drained the price of oil is going back up over 100.

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I think China is more likely to be a surprise to the downside on demand for the forseeable future. Even if the CCP reverses course (I doubt it, because it would be a sign of weakness), China is likely going to go through a period of mass disease and death. China's healthcare system will likely collapse. This will dramatically weigh on their demand when they get out of these lockdowns. But my bet is the CCP doubles down again despite the fact there is no way to close pandora's box... It's only really a matter if when they let it happen. This is the price of a zero COVID strategy.

🧵What happened in 3/22 when Omicron hit Hong Kong, illustrates challenge China faces

Hong Kong like China had low vaccination rates; especially among elderly

In face of much more contagious variant, low pre-existing immunity in HK was devastating 1/xhttps://t.co/ZiotntZdgC

— Scott Gottlieb, MD (@ScottGottliebMD) November 27, 2022

Obviously Russia is the potential surprise to the downside on supply. I think people are underestimating the possibility of the political collapse of Russia (it's probably not likely, but it's not zero as the market is seeming to believe).

Long term I think everything is set for $80+ oil prices for the forseeable future. Almost every medium to long term scenario (5-10 years) is actually bullish oil, in my opinion. But don't underestimate China's ability to triple down on zero COVID.

I have an interview with Hilcorp on Thursday.

Does anyone here have any insight or suggestions?

The schedule has me interviewing with three technical members and two asset team leads.

Any guidance is sincerely appreciated.

Hilcorp does compressors right? When I was at GE I think they were one of our big accounts in Alaska for Turbines / Compressors

Wiggletrace said:

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I have an interview with Hilcorp on Thursday.

Does anyone here have any insight or suggestions?

The schedule has me interviewing with three technical members and two asset team leads.

Any guidance is sincerely appreciated.

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By the way, this is for a geoscientist postiion.

Which Hilcorp asset team?

I believe both the East LA and West LA teams.

I will make sure I negotiate that into my compensation if offered!!!

Good luck!

Thank you.

I've been doing my own thing for 2.5 years and really enjoying it, but we will see what happens.

That's funny.

I too have a friend from southern Alabama who responds to questions about where he's from with "LA". It's always kind of a joke, but that is 100% his stock answer.