Business & Investing
Sponsored by

Houston..we have a problem....

7,279,354 Views | 28677 Replies | Last: 24 min ago by Drillbit4
Zemira
How long do you want to ignore this user?
AG
First let me kick myself for taking the day off today. Second I'm thrilled Marcellus is being sold. And I will fill you in on the rumor mill as soon as I hear anything juicy.

Been expecting this for a while as Noble was definitely loosing money in the basin. That's why they broke the JV with Consoll.
Talon2DSO
How long do you want to ignore this user?
AG
I may have a buyer
Skillet Shot
How long do you want to ignore this user?
How close is it to the Stone Energy package? EQT making additional moves? Maybe rice?
Ducks4brkfast
How long do you want to ignore this user?
AG
nu awlins ag said:

BlackGoldAg2011 said:

I listened to the press conference done by the COGCC today, he opens with "it is still an ongoing investigation and we don't know yet what caused the explosion"
Then every question was along the lines of why is there not more regulation preventing houses from being so close to wells...
Hot water heater, enclosed basement, natural gas leaking, spark.....yup, it was the well's fault.
Well, it was the well's fault.
BlackGoldAg2011
How long do you want to ignore this user?
AG
Fire department investigators have confirmed the house explosion in Firestone Co. was caused by a flowline from the well.

Quote:

The pipeline linked to the explosion originally served a natural gas well that's 178 feet from the Martinez home, Frederick-Firestone Fire Chief Theodore Poszywak said at a news conference that was broadcast live on Facebook.

The well was drilled in 1993, and the line was one of two that connected the well to a tank battery. The battery was removed between 1999 and 2002, and the Martinez home was built in 2015. Investigators found that one line was capped and disconnected from the well, Poszywak said, but the other was left uncapped and still connected to the well with a valve. The valve was open at the time of the explosion.

The fire department hasn't determined whether the uncapped line was cut when the battery was moved or during construction of the home, said Summer Campos, a spokeswoman.

[...]

Investigators ruled out the home's gas supply as a potential cause after examining the gas meter, Poszywak said, and checked two other sets of gas well flow lines in the area.
BlackGoldAg2011
How long do you want to ignore this user?
AG
Ducks4brkfast said:

nu awlins ag said:

BlackGoldAg2011 said:

I listened to the press conference done by the COGCC today, he opens with "it is still an ongoing investigation and we don't know yet what caused the explosion"
Then every question was along the lines of why is there not more regulation preventing houses from being so close to wells...
Hot water heater, enclosed basement, natural gas leaking, spark.....yup, it was the well's fault.
Well, it was the well's fault.
Yes, but the problem at the time of those quotes was the "journalists" assuming it was the fault of the well prior to the investigation having the evidence to conclude that, when there were many other likely scenarios still on the table.
nu awlins ag
How long do you want to ignore this user?
AG
BlackGoldAg2011 said:

Fire department investigators have confirmed the house explosion in Firestone Co. was caused by a flowline from the well.

Quote:

The pipeline linked to the explosion originally served a natural gas well that's 178 feet from the Martinez home, Frederick-Firestone Fire Chief Theodore Poszywak said at a news conference that was broadcast live on Facebook.

The well was drilled in 1993, and the line was one of two that connected the well to a tank battery. The battery was removed between 1999 and 2002, and the Martinez home was built in 2015. Investigators found that one line was capped and disconnected from the well, Poszywak said, but the other was left uncapped and still connected to the well with a valve. The valve was open at the time of the explosion.

The fire department hasn't determined whether the uncapped line was cut when the battery was moved or during construction of the home, said Summer Campos, a spokeswoman.

[...]

Investigators ruled out the home's gas supply as a potential cause after examining the gas meter, Poszywak said, and checked two other sets of gas well flow lines in the area.

Still somewhat confused. If it was caused from the line, then why didn't anything happen before? The home was built in 2015, surely there has been an open flame since then? Was the line directly under the house? It still seems a little fishy. IF it were leaking gas, one would think you could have smelled it, especially in your basement over a 2 year period.
Ducks4brkfast
How long do you want to ignore this user?
AG
BlackGoldAg2011 said:

Ducks4brkfast said:

nu awlins ag said:

BlackGoldAg2011 said:

I listened to the press conference done by the COGCC today, he opens with "it is still an ongoing investigation and we don't know yet what caused the explosion"
Then every question was along the lines of why is there not more regulation preventing houses from being so close to wells...
Hot water heater, enclosed basement, natural gas leaking, spark.....yup, it was the well's fault.
Well, it was the well's fault.
Yes, but the problem at the time of those quotes was the "journalists" assuming it was the fault of the well prior to the investigation having the evidence to conclude that, when there were many other likely scenarios still on the table.
I was just pointing out there were folks here that were certain it wasn't the well's fault. They're no better than the journalists, right?

Except for the fact the journalists were actually right, I suppose.
birdman
How long do you want to ignore this user?
Flow line isn't going to have mercaptan added. It's not going to smell like a gas leak.

I'm not reading the articles, so it might have been addressed. Did they allow a house to be built on top of a gas line? Or did somebody mark the location incorrectly?
nu awlins ag
How long do you want to ignore this user?
AG
True, forgot that. Still, if you're in the basement for any period of time, you would feel the affects of it I would assume. Basements usually are not that well ventilated.
BlackGoldAg2011
How long do you want to ignore this user?
AG
looking at old google earth shots, here is my best guess for where that flowline is

and here is the full text of what I was reading. and it could have been leaking for a while and just never hit the right conditions with an ignition source, or maybe they changed something in nearby construction that rerouted the leak into the house. But Methane has to be between 5% and 15% of the air to explode. Outside that range and it wont.
Quote:

An abandoned pipeline that was cut off underground and left uncapped and connected to a natural gas well fueled an explosion that destroyed a Colorado home and killed two people last month, investigators said yesterday.

Gov. John Hickenlooper (D) ordered a statewide review of all similar pipelines, known as flow lines or gathering lines. Pipelines located within 1,000 feet of homes and other buildings have to be inspected by the end of the month and tested for leaks by the end of June.

Companies also will have until June 30 to ensure that abandoned lines have been properly disconnected and sealed, the Colorado Oil and Gas Conservation Commission said in a notice to operators.

The April 17 explosion in the town of Firestone, about 35 miles northeast of Denver, killed 42-year-old Mark Martinez and his brother-in-law, Joey Irwin, and seriously injured Martinez's wife, Erin.

The results of the investigation exposed a gap in Colorado oil and gas regulations the COGCC doesn't have precise maps of flow lines that connect to tens of thousands of wells in the state and are likely to add fuel to the fierce debate about how closely to allow oil and gas development and surrounding communities.

"The Firestone tragedy is the most recent and heart-breaking wake-up call that oil and gas exploration is a dangerous, heavy industrial activity that must be kept away from homes and schools," Peter Maysmith, executive director of the nonprofit Conservation Colorado, said in a statement.

"For years, communities across the state have raised concerns about the perils of siting homes and oil and gas facilities near each other, but these cries for change have fallen upon deaf ears," he said.

The pipeline linked to the explosion originally served a natural gas well that's 178 feet from the Martinez home, Frederick-Firestone Fire Chief Theodore Poszywak said at a news conference that was broadcast live on Facebook.

The well was drilled in 1993, and the line was one of two that connected the well to a tank battery. The battery was removed between 1999 and 2002, and the Martinez home was built in 2015. Investigators found that one line was capped and disconnected from the well, Poszywak said, but the other was left uncapped and still connected to the well with a valve. The valve was open at the time of the explosion.

The fire department hasn't determined whether the uncapped line was cut when the battery was moved or during construction of the home, said Summer Campos, a spokeswoman.

The gas, which had not been treated with an odorant to make it detectable, migrated through the soil to a French drain that led to the home's basement. Once inside, it built up to flammable levels and "erupted into a sudden and violent explosion," Poszywak said.

Irwin and Mark Martinez were in the basement when the explosion leveled the home and briefly set fire to an adjacent house. Erin Martinez was rescued by a nearby construction crew and other bystanders.

Investigators ruled out the home's gas supply as a potential cause after examining the gas meter, Poszywak said, and checked two other sets of gas well flow lines in the area.

Next steps

Now that the cause of the fire has been determined, the Firestone Police Department will conduct a death investigation and send its recommendations to the local district attorney's office.

The COGCC may also take enforcement action. Director Matt Lepore said the line should have been disconnected and sealed at both ends, and there "might have been" violations of commission rules.
The well belonged to Anadarko Petroleum Corp., the biggest producer in Colorado, although the damage to the flow line apparently happened years before the company acquired it in 2014. Anadarko began shutting in 3,000 similar wells in northeast Colorado until they can be tested.

"The safety of our employees and the people who live and work in the communities in which we operate is our number one priority," Anadarko CEO Al Walker said in a statement yesterday on the company's website. "We will continue to take all necessary and appropriate steps in that regard, and will continue to cooperate fully with all ongoing investigations to ensure we fully understand the basis for the fire district's conclusions and that no stone is left unturned prior to any final determinations."

Another producer, Great Western Oil and Gas Co., announced Thursday it would shut in 61 wells within 250 feet of homes and other occupied buildings while it tests its flow lines. At least one other company has taken similar action, Lepore said in a news conference.

A statement from the Colorado Oil & Gas Association noted that the line was cut under "yet unknown circumstances" and stressed that the gas reached the basement only after "an unusual set of events."

"In the weeks and months that follow, we will endeavor to enhance flowline and pipeline procedures and remain committed to improving Colorado oil and gas production," added COGA President and CEO Dan Haley.

The COGCC order essentially will apply existing safety rules to all flow lines, regardless of their age. Colorado began requiring companies to provide accurate locations of their lines around 2008 so they can be included in the "One Call" damage prevention system. The mapping requirement will now apply to all lines.

Companies also will have to determine whether any abandoned lines have been properly capped, and they'll no longer be able to declare their lines "idle" and exempt from both capping and periodic leak testing.

"We're asking operators to make sure if there's a Point A that there's also a Point B," Lepore said.
Also, Colorado regulations exempt lines with an operating pressure below 15 pounds per square inch from periodic leak testing. Those lines will be subject to the inspections the COGCC ordered yesterday, and the agency may scrutinize the exemption in the future, Lepore said.

Drilling in the suburbs

The interplay between rapidly expanding communities and oil and gas infrastructure is a critical issue in Weld County, which includes Firestone and other Denver suburbs. It's one of the fastest-growing counties in the country and is home to 43 percent of Colorado's active oil and gas wells.

"It's always been in parts of the state you'd consider rural. But more recently in Colorado, places that they wanted to explore ended up being near populated areas, and populated areas have expanded toward where oil and gas has been for a long time," said University of Colorado environmental engineering professor Joe Ryan.

Ryan said it seems significant that the problem with the 24-year-old vertical well was not its age. To him, it's a reminder that sloppy oil field practices can have dire consequences.

"They're trying to get as much done as quickly as possible," he said. "Sometimes it seems they have that quickness in mind rather than long-term safety."

Environmentalists said the investigation shows that Colorado needs to strengthen its rules on well and pipeline construction, and enforce the rules it already has on its books.

"Time is of the essence to address these issues," Dan Grossman, national director of state programs for the Environmental Defense Fund, said in an email. "Reasonable steps can and should be taken by the state to mitigate the risk that stray gas from wells and pipelines pose to our communities."

And in what may be a sign of political battles to come, Rep. Jared Polis (D-Colo.), considered a potential candidate for governor next year, called the explosion "avoidable."

"Colorado sadly does not have adequate protections against dangerous oil and gas developments in our neighborhoods," Polis said. "The days where oil and gas profits are valued more than Coloradans' safety, property and quality of life needs to end."
Ducks4brkfast
How long do you want to ignore this user?
AG
BlackGoldAg2011 said:

looking at old google earth shots, here is my best guess for where that flowline is


The severed, uncapped flow line was 6 feet from the house.
AgLA06
How long do you want to ignore this user?
AG
Ducks4brkfast said:

BlackGoldAg2011 said:

looking at old google earth shots, here is my best guess for where that flowline is


The severed, uncapped flow line was 6 feet from the house.


How much do you think those open lots are selling for?
sts7049
How long do you want to ignore this user?
AG
wow
DripAG08
How long do you want to ignore this user?
AG
APC getting hammered.
Talon2DSO
How long do you want to ignore this user?
AG
nu awlins ag said:

BlackGoldAg2011 said:

Fire department investigators have confirmed the house explosion in Firestone Co. was caused by a flowline from the well.

Quote:

The pipeline linked to the explosion originally served a natural gas well that's 178 feet from the Martinez home, Frederick-Firestone Fire Chief Theodore Poszywak said at a news conference that was broadcast live on Facebook.

The well was drilled in 1993, and the line was one of two that connected the well to a tank battery. The battery was removed between 1999 and 2002, and the Martinez home was built in 2015. Investigators found that one line was capped and disconnected from the well, Poszywak said, but the other was left uncapped and still connected to the well with a valve. The valve was open at the time of the explosion.

The fire department hasn't determined whether the uncapped line was cut when the battery was moved or during construction of the home, said Summer Campos, a spokeswoman.

[...]

Investigators ruled out the home's gas supply as a potential cause after examining the gas meter, Poszywak said, and checked two other sets of gas well flow lines in the area.

Still somewhat confused. If it was caused from the line, then why didn't anything happen before? The home was built in 2015, surely there has been an open flame since then? Was the line directly under the houlse? It still seems a little fishy. IF it were leaking gas, one would think you could have smelled it, especially in your basement over a 2 year period.


A flow line isn't going to produce much of a smell. Mercaptan, the smelling agent, is not added until further downstream
Ducks4brkfast
How long do you want to ignore this user?
AG
AgLA06 said:

Ducks4brkfast said:

BlackGoldAg2011 said:

looking at old google earth shots, here is my best guess for where that flowline is


The severed, uncapped flow line was 6 feet from the house.

How much do you think those open lots are selling for?
Do minerals convey?
Skillet Shot
How long do you want to ignore this user?
I wonder how this affects legacy wells and acreage throughout other basins and states across the country. Especially Pennsylvania where there is already a strong anti-industry sentiment and some of the oldest wells in the country
jetch17
How long do you want to ignore this user?
AG
http://www.prnewswire.com/news-releases/permian-resources-announces-consensual-and-transformational-restructuring-transaction-300449054.html

the Company will be re-named Sable Permian Resources LLC

topher06
How long do you want to ignore this user?
Probably an illegal house tap.
Ag03 CQE
How long do you want to ignore this user?
AG
Gone are the days when having an oil well in your back yard was considered a good thing.
toastercombo
How long do you want to ignore this user?
WTI is about $46. I think we taste $45 by COB tomorrow.
toastercombo
How long do you want to ignore this user?
$45. Damn
sts7049
How long do you want to ignore this user?
AG
oil stocks taking a beating today
nu awlins ag
How long do you want to ignore this user?
AG
Glut concerns and OPEC meeting on May 25th, although most expect them to extend the cuts into the second half.
jbanda
How long do you want to ignore this user?
AG
Does OPEC have any other choice but to extend cuts? If they didn't, we'd be back at $25/bbl soon after.
IrishTxAggie
How long do you want to ignore this user?
AG
OPEC extends cuts...prices go up to the low 50s...US production picks up a little...prices back to the mid 40s in 4 months...rinse and repeat.
cgh1999
How long do you want to ignore this user?
AG
There needs to be a poop emoticon for this status. Cause it's dead on.
nu awlins ag
How long do you want to ignore this user?
AG
From what I've been reading, most think say they don't have the power anymore to control the market. Plus, are they will to give up market share for hire prices? What good is market share when you are making way less per barrel? I'd rather make more and give up a little market share knowing what stock piles you currently sit on. I would think at the end of the day, these guys will extend the cuts because only a hand full of the 12 can survive lower prices, the others not so much. In one statement, it is report the "glut" is eroding but fast-growing production outside of the deal makers have severely tested investors' faith in the ability of the larger exporters to tackle the glut. US inventory fell 930,000 barrels, but analysts' were expecting more like a 2.3 million decrease. Also they are saying there is weaker gas demand. Not sure these guys really no any more than you and I....
HoustonAg2014
How long do you want to ignore this user?
AG
Wonder if people started hedging on possibility of no extension... I still stand by the meeting either getting pushed back, not everyone participating, or an extension of 3 months or on a month to month basis.

Basically anything but a clean cut. If the cuts get extended, rigs will pop up quicker than ever. OPEC countries are fighting over market share with each other. The US companies are fighting over market share with each other.
HoustonAg2014
How long do you want to ignore this user?
AG
nu awlins

Gasoline demand is driving the ship (pun intended). Cars are more efficient, more people ride share, etc... We need emerging markets to get with the picture so we can export more.
nu awlins ag
How long do you want to ignore this user?
AG
I realize this, but it is more than that. The world economy needs to pick up. This slow growth curbs demand. Still, roughly 19 gallons per barrel are used for fuel, last report I read on where it all goes, while the rest is used for other stuff. We need the other stuff to pick up.
Buck Compton
How long do you want to ignore this user?
AG
nu awlins ag said:

I realize this, but it is more than that. The world economy needs to pick up. This slow growth curbs demand. Still, roughly 19 gallons per barrel are used for fuel, last report I read on where it all goes, while the rest is used for other stuff. We need the other stuff to pick up.
Fuel demand drives it. In a 42 gallon barrel, generally an average of 19 goes to gasoline, and another 12 or so goes to diesel and heating oil. Jet fuel accounts for another 4 or 5. That's 35/42 gallons. Your coke takes up a few more gallons too.

You produce about 45 gallons of product per 42 gallons of oil. Each unit will be different (and each type of oil will be different).

Your other gasses, lubes, feedstocks, etc. will never drive the price or demand.
Gordo14
How long do you want to ignore this user?
nu awlins ag said:

I realize this, but it is more than that. The world economy needs to pick up. This slow growth curbs demand. Still, roughly 19 gallons per barrel are used for fuel, last report I read on where it all goes, while the rest is used for other stuff. We need the other stuff to pick up.


2 years ago we saw some of the largest demand growth in modern history of you've been following iea reports. This year's projected demand growth still significantly exceeds the years oil was at $100/bbl.
Comeby!
How long do you want to ignore this user?
AG
Insight into OPEC's thinking on oil prices....or lack thereof.

http://www.seekingalpha.com/article/4067517

My personal opinion is a short term drop followed by a turnaround.

If I were them, I'd flood the market again and shake off US shale drillers, although OPEC's social programs can't afford it.
First Page Last Page
Page 417 of 820
 
×
subscribe Verify your student status
See Subscription Benefits
Trial only available to users who have never subscribed or participated in a previous trial.