US AURIS Pata Uma eT a Ug ASSAY. \.“he Texas Independent Producers & Royalty Owners Association will host its 73rd Annuv | ‘Convention as state lawmakers convene in Austin for the 86th Legislative Session. Governor Abbott will join a strong lineup of speakers, including newly elected Texas House Speaker Dennis Bonnen and Comptroller Glenn Hegar. Register today for this high profile event with exceptional content, speakers and many unique opportunities to interface with key elected officials and industry colleagues. ia. , JOIN USIN AUSTIN SHERATON AUSTIN HOTEL (S12) 478-1111 For more details on TIPRO’S 2019 Annual Convention, Please visit www.tipro.org or call (512) 477-4452.OIL&GAS JOURNAL BY GENERAL INTEREST Innovation vital to ongoing US energy Fo US imposes sanction: PDVSA in effort to is« Maduro regime Rystad: US sanctions on rength, group leaders TPE: Texas’ oil and gas recovery interrupted at yearend 28 Talos Energy to proceed with Zama appraisal son olate Oil Search expands east of Hue shale blocks in Alaska Venezuela will be weaker than expected 26 1A: US to become ni energy exporter in 2020 a BSAC lowers outlook for = drilling Aramco signs deal to advance crude-to- chemicals technology et 30 Hengyuan Refining approves unit for Malaysian refinery 30 COVER Gazprom hited Ailsoas Group SA's Pioneering ‘pint to lay the deepwater section of its Turk ‘Stream natural gas pipolne across the Black ‘Sea between Russia and Turkey. The 31.5:bi ‘ion cu myer twin pipeline system includes 2 577-mile offshore section, built with 32: OD pipe in water as deep a3 7,220 ft. Gazorom finished offshore construction in No- vember 2018 and expects to put the line in ‘Sence late-2019. Plans fr building crude, ‘products, and gas pipelines are detailed in ‘ur Weriawide Pipeline Construction report beginning on p. 48, Photo trom Gazprom. CONTENTS Feb. 4, 2019 Volume 117.2 ‘SPECIAL REPORT US POLITICAL OUTLOOK Regulatory reforms draw cheers; shutdown and tariffs raise concerns Nick Sra ‘SPECIAL REPORT WORLDWIDE PIPELINE CONSTRUCTION Flat near-term pipeline plans buoyed by US growth REGULAR FEATURES INTRODUCING NEWSLETTER 6 LETTERS/CALENDAR 12 JOURNALLY SPEAKING 16 EDITORIAL 18 SERVICES/SUPPLIERS 58 STATISTICS 58 MARKET CONNECTION 62 ‘ADVERTISERS INDEX 63 EDITOR'S PERSPECTIVE! WATCHING GOVERNMENT 64 ‘an Oil & Gas Journal online service enabling you to comment on articles, communicate with OG editors, and meet lists in your field, For instructions and to sign up, go to wwwog).com/ ‘olandgascommmunity.TECHNOLOGY... —SSa a EXPLORATION & DEVELOPMENT | DRILLING & PRODUCTION NIS Gazprom Neft studies low-salinity waterflooding in Serbia UAE's Sharjah opens onshore gas exploration to ICs aa Ditick FORECAST PIPELINE CONSTRUCTION ii PROCESSING BEYOND BACK-TO- BASICS: PROCESS PRINCIPLES AND CONCEPTS—9: Understanding, preventing corrosion in refineries GUIDETO WORLD CRUDES: Equinor issues assay for Hebron crude TRANSPORTATION Flat near-term pipeline plans buoyed by US growthHRM FOR THE OIL & GAS INDUSTRY MANAGING HUMAN RESOURCES Order Your Copy Today! SO etry Sees Pe oa) Resources in the Oil & C Pc Pere Teno cca) Bre an eee ee Ee a ACR safety culture Dea] ee Noy Tae) OG) Im Houston Vice President and Group Publisher Westorel Editor Bod Tips Managing Eltor News Sieve" Po ‘Managing Editor-Technology Chyistopher € ‘Smith Upstream Technology Ett Pa.e itick Downsteam Teohalory Ester Ro rt Brelstord Senin Er Eeanomis Cart x Ear Hows Ne A Editorial Assistant Varnel2 Diodes, In tsa Statistics Editor Laura Bo A Director Cl Drea Jac0n B Senior iustratore ihe: Reed Production Dietor Cirle Ci Production Manager Shirley Gambos Ad Services Manager Cary Shipley ce Cons Hi In Washington Washington Eater Nck Sr i fel 708.533.1852 ei vial Advisory Board Pat Denner Motve Enivrpe ‘ntfs. Tex Doug Ei he Hora utoneIPSl (Advisor), Houston Fernando Fetora de Oliveira Pasacena Rete ‘System Inc. Pasadena Tex Flower Independent Consult, ater, UR Michelle Micht Foss Burea Seely Cntr rE Micnae ypeh Stotege & Research inc, Arinerst, Mass. Tom Miesnet Pizcine Krowiede & Develop ment, Housto Ralph Neumann Sacger Midstream Energy UP Kent Pery RPSEA,Fouston Guinter Chevron Pie Une Co Houta conor Steven Tobias Hess Corp, Houston Shvee Vikas ConocoPuliss Co. Houston lark White Targa Resource oust Colin Woodward Vi termational Uc Buthor, UK Editorial Ofices Swit Executive Vice President, Corporate Development and Strategy, layne A, Gisineer Chie! Operations Officer Pennwell Media, Rober Brighouse Subseriber Servic Knowledge Marketing, PO Box 47570, Phymouth, MN 56447 USA USA inquires: 800-869-6882 niernaaal inguites: 912.982.4277 Senior Audience Development Manager Custom Article Reprints Rusty Vanderpoo! Office (918) PennWell Corporate Headguvarters 1421 S. Sheridan Ra, Tusa, OK 7411 We C&S Andante Cape sors br ates ope Fa am Daa 21 ShcA Fecal atage a , OR o t aeon x SESH PICS mS yer S12 ons 3 it Pee, ee LCDR Sr ns hteNewsletter International News for oil and gas professionals Feb. 4, 2019 For up-to-the-mi visit www. ogjonl Eni, OMV buying ADNOC Refining interests of refining capacity, a $19.3 billion Eni will acquire 20% interest for $33 billion aft ior share $3.9 billio est, The compar announced plans to expand partnerships across its oil and ‘operations (OG) Online, July 10, 201 ADNOC Refining operates the Ruwais East, Ruwais We and Abu Dhabi refineries. The hhemical facilities able to produc C ptopy he purchases will increase global refining 354; for Eni and by 40% for OMV ADNOC Refining plans to expand refinin, Rup ais, now a combined 81 with the addition of a {600,000-b/d refinery and to expand petrochemical capacity at Onlin ADNOC, Eni, ar to form a trading joint cal and deriv ive trading 2¢ ng joint venture will help guide ADNOC Refin NOC secures the best possible s refining trading ac ADNOC sa he state objective of the trading joint ventu E. Timor okays use of oil fund for Sunrise purchase ransisco Guterres has approved a decree countr mn fund for the $650-mi the Royal Dutch petrol PLC and ConocoPhil time that it could allow the petroleum funds to be misused aw, the president can veto a bill only once. He must then ratify The acquisitions b blic last year. In October 2018 Phillips said it million, Shel the following month when ounced East Tin The acquisitions were subject to approval by the East Timo: Couneil of Ministers and Parliamen This recen residential app in oil projects and enables Sunrise Parliamentary approvals in the future The fields straddle the maritime boundary be 1 Timor and a Tong-ra pu the lopment for mat mn the two countries in 201) Sunrise gas project involves deve! nd Troubs as fields, which ¥ petroleum Lid.-led red the project d ears. The va betw the Woodside L venture elds are estimated to hold a total of 5 tel of ga on bbl of condensat + partners have resisted antry’s south coast, preferring s operator with 33.4%, The remaining Sawan to succeed Brown as Shell upstream director en appointed upstteam director of Royal Dutch Shell PLC, and will becom committee, effective July 1 Sawan succeeds Andy Brown, who will remain available to assist with the transition until Sept. 30, at which time he willPARTNERSHIPS COMMITTED © TO PERFORMANCE For over half a century, we have forged lasting relationships that ensure every Ariel compressor operates at peak efficiency. Depend on Ariel, and our unparalleled Global Distribution Network, to fulfill all your compression requirements. WORLD STANDARD COMPRESSORS ARIELCORPORATION |ICEBRENT/ NYMEX LIGHT SWEET CRUDE sou ciaacriabas PDN eo DLS prt as lita ee teu ee ea oe US INDUSTRY SCOREBOARD — 2/4 awh. 4 wk. avg vio VTDavg, Change, year age! average’ year ag0 Latest wook 1/18 atest Previous| ‘Same week Change, week week Change year ago’ Change % |AKER HUGHES INTERNATIONALRIG COUNT, BAKER HUGHES RIG COUNT: CANADAMckinney named as SandRidge president, CEO Paul D. McKinney has succeeded William M ent and SandRidge Energy Inc Grillin as pres hief executive office McKinney has 35 y cently was president and chief Ine. Griffin will ¢ perating olficer of Yuma 1 Sand Ridges booed. i [EXPLORATION/EADEVELOPMENT) QUICK TAKES Ukraine to outline details of licensing rounds secks to end its dependence on imported gas, International oil companies are being invited to participate ne first round will be for 10 blocks covering 1,120 sq miles, in six regions, The auctions are scheduled for Mar. 6 Deuail cussed at the Ukrainian Gas E&P Forum al Society in London where speak of Ukerair Council and the Association of Gas Producers of Ukrain mote than 8,200 s SA tend xpected to be nnounced in Febs ly March, months to submit their appl OVL tests second strike on Colombian block 5€ Videsh Lid. (OVL WAP its 2017 Mariposa-t ofl strike on Blo Bland plans furthe ine, May 5, 20 The operator, India’s Oil & Natural Gis jer this month that it had logged 284 At gross is testing an oil discovery on trend PO-5 in Colom ling (Oc holly owned Lower Sands (LS-3) unit of the Creta cous Une on in its Indico-1 well, The well hit pay 9,833 ft ME and bottomed in Paleozoic rocks at 10,602 ft MD. nthe upper pat the LS-3 unit, the well lowed 4,000 bid o wily with 03-04 ke. Top-hole pressure OVL continue 6.5 km from the 's more exploratory wells and seismic surveys 10a alls an “i OVLh Valeura Energy drills, logs Turkey appraisal well Valeura Energy In sn appraisal well in the Thrace basin in northwe h of 4,895 m, reached an objective section tt & Gas Jounal Feb. 4, 2019 at 3,270-4,885 1 Based on drilling and wireline log red the top of the primary objective sands at base of the Mezardete formation, after which hi sandstone was present almost continuously down to TD withir mation, The company said that more natui id than in the Yamalikel well nat the end of this year's 0 drilling rig will b coming days and will begin relocating to the next pinay Sean Guest, president and chiel executive officer, sid, “W Lukoil's fourth Eridu well confirms model Lukoil s oil field c flowed on test during ¢ the Middle Cretacec Mishrif formation (OGJ Online, Feb. 22, 2017 I said the fourth well flowed dry crud O17 at more thi Lat comm sal wells and further 2D and 3D se on the 5,800-sq-km block, which is 150 km west ra and 120 kim f field oil hols 60: The Iraqi Inpex Corp. holds 40 ty to the agreement is represented by stae-ov pd SOCAR, KazMunayGas eye Caspian cooperation Azerbaijan and Ka- ering joint exploration in the Caspian Sea and including re arbishment of a Kazakh jack up rig in Baku. State Oil Ca bai Lu MunayGas, for drilling in the Caspi ation identified in the MOU, sig ossible areas of coo Equinor gains approval to extend life of Asgard A Equinor and its partners will consider new drilling targets and well as ad easures to improve recovery following approval [rom (NPD) to extend the tech: »A thr 2020s, NPD New drilling targets and wells linked sed in both the shorter and longer term. An improved roject involving “low wellhead pressure” has an ex well as the Blabjorn di dA (OG) Online Eni starts up more Vandumbu production off Angola Eni SPA reported st bu field, about Soyo, in the West Hub o VAN-102 start-up, via th 50 kam northwest of Luanda and 130 km N'Goma f roduction, sto el, follows st second subsea ge, and offloading ve multiphase boosting systen perlo mance of about 13,000 bbl Vandumbu field started producing « m 3 month p-up will be co + 2018, head of schedul pleted in well. With eee FB. Bock 130 Ei, operator ImBlock 170,004 ds 26.32% 5/06. $51 Fifteen L BPTT lets contract for Cassia compression project BP Trinidad & Tobago LLC (BPTT) has let a contract 10 M Dermott International Ine. for the engineering, procur ith the existing Cassia B southeast offshore Trini McDermott will pro the 8,100-tonne C 0-tonne bridge to link Cassia C platform that currently sits in ae The scop nncludes brownfield modifications at Cassia B. The compression platform will be fabricated and constructed a Meer u's fabrication facility in Altamira, Mexico, Trini will fabricate the jacket and the by MeD Engineering services mott’ ofl in Houston, Chenna ment team and f he EPC contract follows the completion of be provide nd Duba project manage rement being performed from Houston. for Ca well as the completion 0 EPC, installation, and commissioning contract roject for BPTT (OG) Online, Ju Ca BPTT 4 assia fh s turbine driven compres hrough new pipi will be in three Cassia B will be combined and boosted ded in two phases, with an initial The contract was av ooking in fourt 2019 backlog MeDermott’ first-quarter LLOG lets subsea contract for Stonefly development uw ation Co, LLC, Covington, La, ha ntact ‘ott International Inc. for deepwater subsea pipeliny Powell plat levelopmen ides project management, installation engineer subsea structure and spoolbase stalk fabrication, an ment include fabrication and reeled solutions. Installation ks and structures using the Nort scture design and installation engineering began in Janay The Tak 1 Ram Powell tension-leg plat@rm ol Bloc CVR Refining lets contract for Wynnewood refinery CYR Refining LP subsidiary Wynnewood Refining Co. LLC has let a contract to KBR Inc, to provide engtr and design vice provider's proprietary Solid Acid Alkylation Technology (K-SA Wynnewood, Okl the operator's 74,500-b ill deliver " SAAT tech refinery’s existing hydrofluoric ac (HE) alkylation un A timeframe for when Wynnewood Refining would proceCAP lets contract for Indonesian petchem complex ri Perkasa (CAP2) Petrochemical Tbk. Chandra s let an a McDermott International Inc. to provide proc CAPS plan As part of the contract for rochemical Jetailed engine complex in the region, McL ing of eight proprietary tpy of propylene using ows proprietary Lummus SRT pyrolysis heater technol service provider said. Valued at $1-50 milo and to be reflected in McDermott's cog, this latest contract follows CAP2's quipped to Corp-Lummus butadiene ex rode ne using BASF CAP2's complex, which will join CAP's exist ochem -al complex at Ciwandan, Cilegon, in Indonesia's Banten pr rochemical production to help meet rising Indonesian demand, CAP, itself a subsidiary of PT Barito Ps previously let a contract to MeDermout fic TDK., J erly CB amp of existing furnai aha ply materials for the planned naphtha cracker of its 860,000-tpy Ciwan xpand capacity to 900,000 tp TA EXxonMobil advances Wink to Webster crude line Exxon Midsiream 1 Join venture and ordere fm line pipe port more than 1 millio multiple ne pipeline will have or have formed! the Wink to Webster Pipeline LLC kc and Midland, Tex, to multiple locations including Webst Tex., with connectivity to Texas City and Beaumont, Tex. Plains will lead project construction and has already ini ted prec ion work. Th geted to begin operation WBI Energy to construct Bakken gas project rces Group Ine. subsidiary WBI Ene cillary facilities to transport natural gas in the Bak rovide 200 MMefd of gas transportation ioga, ND, an n Border Pipeli Cost to construct the 20-4 in MeKenzie County, ND. n. Depende ion of tra and environmental permitting and finaliz, ion agreements with cust porta mstruction ted Tate that on resulted in long-term transportation com: roject stakeholders through th 8 warranted by customer demand, the project could be expanded to pi AGIG to expand Tubridgi onshore gas storage facility Australian Gas Infrastructure Group (AGIG) has reported followed its $74-million (Aus.) redevelop. arvey and expansion of th sion in the last week to complete a sei © 90 terajoules/day and 60 terajoules/day, respect Tubridgi isa shallow depleted! gas field with an aerial exten of 35 sq km originally operated by Doral Resources Ltd. on the coast of Western Australia about 25 kim duced between 1991 and 2004 1e domestic grid viglam Jem spur line into the Dampier-Bunbury ti Initial pla ns following the field's depletion in 2004 wert stern Australian gas market for storage services, ac to Andrew Staniford, AGIG' chief custome xy Will be state of the art, producing 3 hat lies 550 m underground, The maximum ne and derisk any that may be insta he futur leneck 1d witha capacity has been a ing a year of operation and tech n-house engineering team. corage in Western A al input from the The facility, the largest now owned and operated by AGIG, which is an uastralian Gas Netw Multinet Gas Networks th Dampier to Bunbury2019-2020 EVENT CALENDAR WE Denctes new ising or og a) it, Houston, web site 019 18-20. ence &Exhibition, Commissioning, a change m previcusyy i tb rE Baku, web Kuala Lumpur, ve pubis intonation. r ROL-Forum 12. lapan LNG & Gas. 0 7 site: 10tn e- wor Sumit, Toyo, we pian-2019 20-21. ated: offshore: sas 54, lot in OW & Gas Canada, site; ww ‘ 25-28. Calgary, web ste: ww. com 19-20, ntenational Conte FEBRUARY 2019, Morocco O1&Gas i i fence on Petroleum Annual LNG USA Sum Summit, Marrakesh, 13-14 nternationa Indonesia Mineral Resources & mit, Houston, web ste Intemational Associaton web se: : Conference & Exh Development (PMRO), us af Diting Contractors m Ol mf (IndoGAS 2019), Nest, Egypt, 26-21. AQADC) Healt, Safety, iO Congress 2019 (MOGC Jakarta, web ste oti Environment & Training. oitand-gx 2019), Thessaloniky 6 0 pad 20-22, 01 & Gas IP Sum Conference & Exhibition him 7-6, Greece, web ste 1920. mit, London, web site: (HSE), Houston, web cH 18419, Society of Plastics J P sie NAPE Summit We nternatonal Conference. Engineers international 26-21. ade-he Houston, web st MW Pe troleum Pelyoe srirormenttraii x Counc Lea ence, Houston, web Middle East Technol ion HS. Conference, Mumbai site: hip i) ogy Forum for Refining 56. we site: " wemicals NAPE Summit 2019, wpclesdersiip nonter : H 2019), Ab wea UKSubsea Houston, wed ste: naps 18-20, jeone 18-20. hati, web st: Exo, Aberdoen, web expo.com! 11-15, tera sie Society of Exploration Global LNG Forum, ence on : 26-28. Salt Seale LNG Sum- Geophysicists (SEG) Milan, web site Chemical Engineering, 2! 57. it, Mian Socety of Petroleum —ing-gabaeomindex. Houston, web Sudanese Assoc * went Engineers 19-20. edscienti: of Petroleum Geoscien SPE Hycraulic Frat 12. Advanced Geophysical nico ists (GAPEG) Petroleum ng Technology Conte ling & International A enc nfrence & Exh nce & Exhibition, Society of Ex ati tion of Dring Con p 25-27. in, Khartoun The Woodlands, Tex, Geophystists (SEG) RO web ste; tors ADC) D sie: sa wb site: wn Forum at NAPE Sum- itp revert nfor- Integrated Offshore 26-Mar. 1 FF « JOER.PYLE | COMPLETE AUCTION & REALTY SERVICE WILL OFFER AT AUCTION, BY ORDER OF THE BANKRUPTCY COURT, ASSETS OF ay 4 COMPRESSOR xenon Srey ti Era aay EER esis9 Prrrtunresarit sy APPROX. ACRES MANAGEMENT PUN sites ha Sealed Bids will be received through 4:00 PM on February 25, 2019| Live Auction Event will be held at 9:00 AM on Tuesday, March 5, 2019 Gee ee eee i Woe Dae Coe bard2019-2020 EVENT CALENDAR. Cost-Efectve Well Site Faclittes Canada. Unconventional Shale Congress, Calgary, web te: wa vel ‘SPE Mido East Energy (PTO, Being, web ste: Summit, Manama, web wvmiplonetorg/ISipe! Conference & Exhibiton site: htps.iwwwcspe. homey 26-28, Ravenna, Italy, web site mi le European Fuels Markets 8/27-28, facilties-canada-shale, eastenergy-summit. & Refning Strategy Co- ‘on 27-2 ference 2019, Frankturt, interratona Petro m. "leu & Petrochemical MARCH 2019, Middle East Oi event! Technology Coote Show & Conference, ng ence IPPTC), Bejing, Saudi Dow Manama, wob ste: website: wip Forum, Yanbu, web ste: tp y 9/2019/nd hts: audidown- 18-21, 27:28, nom 56. Bejing International Papua New Guinea Offshore Oil & Gas World Congress & Expo Subsea Tieback Forum Pettoleum & Energy Exhibition, Being, web on Oi, Gas & Petroleum & Exhibition, San An- Summit, Port Moresby, site, wwn.clooecomen’ Engineering (WCEOG: toni, web ste: tps! web ste: https, en 27-28. E2019), Mian, web w Hio- _ prgsummitcoen! 19-21 site: scenticfederator rcoméindex hl 5-7. China International om 0 ‘American Fue & Petro- Petroleum & Petro: sxphp 28-28, SPENADC Diting chemical Manufactures chemical Technology & ‘onference & Exhititon, International Pevochem- Equipment Exhibition ABRI2019. The Hague, web st enorme! 6:7. LUNG Supplies for Asin Markets 2019 Confer- ce (LNGA 2019), web sie Patrolou Contr ‘ence (NAPEC), Oren Alger, web ste: wr Sis= 10-13, International Co cence on Oil & Gas, Singapore, web ste om 1112, Australasian OF & Gas tion & Conference 2019), Pert, web 13445. American Fuel & Petro chemical Manufactur ers Annual Meeting & Exhibition (AFPM 2019), San Antonio, web st tes 178. onference (AFPM (CI IPC 2019), San Antonio, site web site: tos /van 24-25. Gif Safety Forum & (OPEX MENA 2019, Manama, web ste: European Ass of Geoscientss & Eng neers (EAGE) Scienife Conference, Tyumen, we site: ios coge.orp/2019) 25-29, SSPEAICOTA Colled Tub ing & Wal intervention Conference & Exitos Weodand we site: vis cre! 26-27 (Guyane Internat Petroleum Business ‘Sumit & Ext (GIPEX, Georgetown, web ste hip 26-28. International Petleum lecinology Conference Oi & Gas journal Feb. 42019 ps0 Befing, web International Confer ence & Exibition on 27-28, $94 PRICE-GREGORY Pipeline Construction Ceca ee ad Gas/Oll Separation Facilities Metering or Mainline Valve Stations Dery eat a Offshore Mecitersnean Liquefied Natural Gas, Shanghai, we Miindependent Petroleum Association Mexico Energy Assem site 1g2019.0mr 15. of America (PAA) and Texas Aliance of Energy Producers (TAEP) Texas Seapox Exploration (Conference (SEC2019), ‘liance Expo & Ann Meeting Irving, Tex web site: https orgfevent-20 2. rgfevents 35, 23, SPE International Lebanon interna Ol & Gas Summit Conference (SEC2019), Singapere, web st: Conference on Oilfield Chemistry, Gaveston, Tek, web site: ww Bvt, we European Associe- tion of Geoscientists & voaprcaregcon Dood Penney fe and Reliable Pipeline and Facilites Construction”2019-2020 EVENT CALENDAR, Engineers (EAGE) Midstream Convention, CEE Smal-Scale LNG web ste: tpsiean- gascounciLcory (ADC) Wel|Control Con- OR 2019—Eurepean San Antonio, website: Forum, Vins, Lthu- adagasingcom/ 21-23, event-eventsigto-africa- ference of The Americas ‘Symposium on im-—gpamidstreamconven- ania, web sit: htps:if congress! 24-25. & Exhibition, Gaveston, [proved Oi Recovery, ton.org 14-17, ‘ceessing.comi/ 7-8. _Intenatonal Caspian Tex, web st: iade.org/ Pau, France, web ste Oi1& Gas Corference, Bras shore Confer- event’2019-iade-wel- Inttpsufevents cage. Society of Petroleum GeoComventon, Calgary, Baku, web site: ww. ence & Exhibition, Rio contro-conference-of- ‘org/2O19/10R%20 Engineers-Kingtom of website: hitps/iwwn. olgas-events.com/ de lane, web ste: the-americas-ehibion 2019 8-10. Saudi Arabia Section geocomventon.com/ — EventsCaspian-Oi-wwwbrasiotishore. 27-28, GSPE-KSA) Annual 13H, Gas-Conference-2019com/en/nome! 25-28, ‘SPE Oklahoma City Technical Symposium 3031. ‘American Assocation (1 & Gas Symposium, & Exhibition (ATS&E SPE Guf Coast Section WY2019___ of Petroleum Geologists (Oklahoma City, wed 201), Dammam, web Electric Submersible UME 2019 (AAPG) International site: https. site: wow: spe-ksa.org/ Pumps Symposium, Energy &Sustainabilty Conference & Exhibition, speokesymposium. alse 14-18, The Woodlands, Tex, European Assoca- 2019—Interational Buenas Aires, web ste: orgy 8412. web site: wwwspe. "ton of Geoscientists & Conference an Energy & aapg.ogioventscanter Global Congress on orglevenslen/2019! Engineers (EAGE) Sustainability, Coimbra, ences/ce/announce- IADCISPE Managed Renewable & Non-Re+ symposium/19esp/ Conference & Exhibi- Portugal, website: mentArticled M6646 Pressure Dring & newable Energy 2019, electrie-submersible- ton, London, website: wessexac.ulleonfer- _aapg-2019-iternatonal- Underbalanced Op- Venice, web ste: www. purmps-symposium tim hitps/events.eage org! ences/201energy-and- conference-exibition- eraons Conference & cognzancescientifc. 1347 env201Sfeage-annu-sustanabilty2019 3-5, bvenosres 27-20, Extibton, Amster con/renewablenon- 2-20193-8. am, website: ww, enewable-energy’_SPE Norway One Doy Advanced Research SEPTEMBER 20198 fadcorgevertieds- 16-17 Seminar, Bergen, web SPE Latin American Projects Agency Eneray spempdsibo2019/ Sie: htpswwspe. & Caidbean Peto-(ARPA-E) Energy n- European Associa- 8410. SPE Symposium: Asia orpeverislen2019/ eum Engineering novaon Summ, ton of Geoscensts & Pacific Health, Safety, conference/I9berg/ Conference, Bogote, Derwer, web ste: wor. Engineers’ (EAGE) Con [API Pipeline Confer. Securiy, Envcrment spe-norway-one-day- website: wnw.spe.org/ arpae-summitcom! ference on Petroleum fence & Control Room — & Social Responsibi- seminachiml 14, events/en/20197 Home 8-10, Geostatstis, Florence, Forum, Phoenix, Ariz, ity, Kuala Lump conference/Iacp/ wed sie: tps events Web ste: apioxg/prod- web site: www.spe. Intemational Associa-_latin-american-and- Society of Petroleum _eagecrgler/2019/petro- ucts-and-services! cagieventsien/2019/ ton of Driling Contac caribean-petioleum- Engineers (SPEY eum goosiatistics 2-5. eventsicalendarZ019/ symposium/20sm01/ tors (IADC) Dring _engineering-conference. Amnerican Associaton pipeline 9-11 Committee htm! 23-24, Onshore Conference tn! 5-7. of Petroleum Geologists SPE Offshore Europe ‘& Exibiion, Houston, (AAPG)Society of Ex- 2019 08 & Gas Confer SPE OW & Gas India _‘Societyof Petroleum website: iadcorg/—‘Mllbera Gas & LNG poration Geophysiciss ence & Exhititon, erence & Exhibi- Engineers (SPE) West- event/20I9-iadc- Conference & Extibi- (SEG) Unconventional Aberdeen, web sit: Mumbai, web ern Regional Meeting, diling-onshore-confer- tion, Madrid, web ste: Resources Technology wwrw.ffshore-eur specig/ San Jose, Cal, web ence-exhibiton 18. _ttps/wwwiberiagas. Conference, Derwer, ca. 3 13 site: htips:feomect. com 1041, web site wiv ure nee/ISogclol- spe.org/goldengate/ World Fuel Gil Summit orgi2019 22-24, European Associ sindia-confer- western-tegional-meet- Xil, Limassol Cyrus, Future Ol & Gas, Ab- tion of Geoscients fenceand-eshbion, ing-2019 23-26. website: tpufaxe- _erdaen, website: www. Arica 2019 O1& Gas Engineers (EAGE) n- i SH, rodenergyprjects. _futureigascom 11-12, International Trade &x- terational Conference International LNG com/#woiduehoi- ibiton, Nao Kenya, on Fault & Top Seals, SPE Reserir Congress, St. Juans, summit 1648, Upstream West Aca websie: hits. Pater, Ray, wed ste Simulation Confer. Malta, web ite: hits! Summit 2019, Dakar, expogrcomfkenyoi”_itpsevens eageorg/ fence, Galveston, Tex, Ingcongresscom’— AAPG 2019 Annual Senegal, web Stes 25:27, erv2018faut-aetop- web ste: wiwspe. 29-30, ‘Convention & Exton, https /wwnupstream= seal-2019 8-12, ogleveisien/20194 Sen Antonio web ste: westaicacom/ 1820. Gas indonesia Summit conference/1Srsc/ RefComm Galveston, wiv. aapa reeves! {Exhibition 2019, Weld Energy Congress, reservr-simulaton- Galveston, Tex, web confeencesiace/ 18-22. Intemational Assocl-_lakarta, web ite: ww. Abu Onabl, web te: conference:nim! ste: tpifrefring- ‘ion of Dring Contac- gasindosummiteom’ — wwacwec24org 912, 10-11, communitycom/el- Works Congresscon tors (ADC) Wold Dril-_ July 31-Aug. 2. comm-gaveston 2019 Petcloum & Refinery, ing 2019 Conference & Conference on Oi & Interational Confer- Ap. 28-May 3. ‘aka, Japan, wed Exhibition, Milan, web AUBUST.2019___Gas Geological Exlora- ence on Combustion & sie. htpsifpetreum. — sie: adccrpovent! tion & Development Processes, Rome, web MAY2019 ___conlerencesries. con worhailing 2019 Sunmmer NAPE, Hous. (GEOMODEL 2019), se itps:lespoorter 2021. 1920. ton, web ste: naponpo. Gelendzhik, Russia, encectg/ 10-12. Offshore Techn comisummer 21-22, web te: ttps:event cay Conference (O70, Canada Gas & LNG Gos-To-PowerAtica cage orglen/20191G00- GosProcessors __Hovsion, web i: ww. Exhibition & Cnfer- Congress, Pars, web Inlematina Associaton model%20%202019 Associaton (GPA) cenetorg/-B. ence, Vanecuner,BC, site: ityslblond-—— of Dring Contractors. 9413, “4 (OW & Cas Journal | Feb. 4, 2019European Associa- tion of Geoscientsts & Engineers’ (EAGE) International Conference (on Fautt & Top Seals 2019, Palermo, web site: htipssevents.eage org 2018/Faut%20 and%20Top%20 Seals%202018 18-19. iGastech Exibition & Conference, Houston, website: wmugestech ‘event.com 17-19. Society of Petroleum Engineers (SPE) Reser ot Charactraation & ‘Simulaton Conference {&Exnibition, Abu Dhabi, web site: tpsfiewa spaorgverision2019/ conference/i9rosc/ home 17-19. International Assocation of Dring Contractors ADC) Dring Heath, Safety, Envionment & Training (HSERT) Eur rope 2019 Conference & Exhibition, Amstercam, ob site: adeorgfevenl eworhset-2019 18-18, Gas Indonesia, ta, web sie we indonesia. com ‘ety of Petroleum Engineers (SPE) Annual “Technical Conference & Extibiton (ATCE), Ca a1, web site: conn spe-org/ Calgary! ceventsievenescrition? GalenderEventkey=908 ‘S207 fe0-4930-8 67a 2577S7T&Home=Moine ‘Sept. 30-0ct. 2. Ct ‘ocroBeR 2019 Louisiana Gut Coast Oi Exposition (LAGCOE) 2019, New Orleans, web site: https, lagcoe com/eventsag. coe-2019 94. OI & Gas Journal | Feb. 4, 2019 5 2019-2020 EVENT CALENDAR Society of Exploration nualgeneralemeeting rum.con’ 11-13, _orgleventslen/2019/ _RefComm Santiagn, Geoptysicsts (SEG) 6-8. conference/I9adip/ Santiago, web ste: International Confer ‘Abu Dhabi International abu-chabl-internation- httpstefiringcom lence on Engineering MLUS-Mexico Natural Petroloum Exhibition & al-petroleum-exhibi-_muniy.com/tefcomm Geophysics (CEG), Gas Forum, San An- Conference (ADIPEC), tionmand-conference- santiago-2019 18.21. AALAIn, UAE, web site: toni, web site: ww. Abu Dhabi, web site: adipec-2019.mtmi hitosdsegery/Events/ usmexiconaturalgasio- https:www spe. 1114, Society of Petroleum Engineers (SPE) ees — MINIMIZE FUEL (RPTC), Moscow, web catverisenZ015. IN THE conference/19¢pte/ Game HOT ZONE moscow html 22-24, International Associa- 4 tion of Dring Contra: tors (IADO) Advanced Rig Tectnclogy 2019 Conference & Ei tion, Amsterdam, web ste: iad orgieventrig technolagy-2019 22-23, ‘Asia Petroleum Geosci- cence Conference & Extitition (APGCED, Kuala Lumpur, web site: events eage.0fg/ en/2015/APGCE%20 2019 28-20. ‘SPENATMI Asia Pacific (i & Gas Conference & Exhibition, Bal, web site: httpsienspe axpfeventsion/2019) aks ‘conference/1Sapog/ L/S UFO asia pacific-o-and: By tsconfeence-and fehbion 29-31. FRAC FUEL SOLUTIONS IS CHANGING THE WAY Psrhetelecae FRAC PUMPS ARE FUELED. Conference Brazil (OTC = Basi 2019), Rio de SAFETY: oursytem hoops employees AND large amounts of ue ot ofthe hot zone Janel, web site: wi ‘sgnieatl reducing the rik offre. SeReine DIRECT FUELING: our system delners cose aire t frac pumps, which Keeps your COST SAVINGS: iedeesdu setter system reduces day rate and increases operational efciencis (NOVEMBER 2019. adding up to substantial cost savings. International As- THE ONLY DIRECT ENGINE FUELING SYSTEM, PATENTED TECHNOLOGY sociation of Olin Contractors (ADC) An WWW.FRACFUELSOLUTIONS.COM @ 713-907-4371 rival General Meeting, ‘Austin, web site: ad onglevent/2019-iadChange in risk preferences ‘CONGLIN xu Senior Eitr-Economics 16 A survey of institutional investors by the Oxford Institute for Energy Studies (O1ES) was conducted in July-October 2018. There were 26 participants, including investors based in the US and Europe, from “long only” asset managers and hedge funds to private equity investors, Each interview focused oon the hurdle rates seen as desirable for different types of energy investment Specifically, the question was: “What base-case {internal rates of return (IRR), or hurdle rate, must 4 new energy project generate, for you 10 prefer reinvestment in that project, rather than further growth in dividends and buybacks? The hurdle rates stated were, on average, 10- 11% for solar and wind, 14% for LNG, 15% for shale oil, 18% for deepwater oil, 21% for large projects outside of the safest geographies, and 40% for new coal mines. However, according to information collected from the public domains, completed projects in the last few years, on average, have had a hurdle rate of 9-11% for wind and solar, 12% for LNG, 10% for shale oil, 15% for deepwater oil, 13% for ‘megaprojects, and 16% for coal mines. The hurdle rates for wind, solar, and LNG proj- ects have remained relatively stable (wind and so- lar are widely shielded from market uncertainties through government support schemes). However, the minimum required returns for other fossil fuel projects, especially deepwater oil, long-cycle megaoil projects, and new coal have increased markedly Although there might have been imperfections in the survey, the comparison revealed a change in risk preferences around energy projects over the last ew years, OIES attributed this change in risk preferences to uncertainties associated with energy transition and climate-emission policies. As cited by OES, California democrats re- cently said they want to “ban all fossil fuels from the electrical grid” at some point after 2030 (Wall Street Journal, 2018). In third-quarter 2018, New York regulators denied an air permit for a newly built gas-fired power plant, as climate activists criticized its carbon dioxide emissions and gas use from hydraulic fracturing (APPA, 2018). While such a change in risk environment due to energy transition may not be surprising, the im- plications of said change are highly significant, This is because, to date, transition has been seen as only possibly having long-term effects. This, along with the uncertainty about climate change and emis- sions abatement policies, may lead to an underes- timation of the problem and its effect on growth prospects, firms’ cash flows, and asset payols.” Implications Change in risk preferences and consequently dis- count factors will lead to reassessment of the value of firms and their future profits “This could have a huge impact on their market capitalization, demand, creditworthiness, and the value of their assets, This especially problematic because oil and gas companies are heavily debt fi- nanced and asset revaluation has implications for financial stability” O1ES said ‘A consequence of risk-aversion is overconcen- tration of listed oil and gas companies activities in the “harvesting phases" and away fromthe “explo- ration and appraisal” and “development” phases. One junior E&P company noted its frustration to OIES: “We cannot partner with majors. M have moved to a zero-risk model. They w rather pay $500 million to back in once yo dlrisked an opportunity than pay $50 millo back in early” In a similar manner, private equity-backed companies are better positioned to unlock value from short-term projects such as hale formations, and they inherently discourage long-cycle invest- ments When turning to national oil companies, how= ver, itis unlikely that NOCs on their own would De able to mect the investment and financing gap. The possibility of a supply gap due to lack of investment would lead to higher-than-expected long-term oil prices. Thus, shale projects are well positioned to take advantage of the strong envi- ronment. However, whether shale can fll any pos- sible supply gap is uncertain In the end, the energy transition process could be accelerated as higher long-term oil prices im- prove the economies of alternative resout OIES noted. (011 & Gas Journal | Feb. 4, 2019FEBRUARY 5-7, 2019 // GALVESTON, TX USA A SPONSORSHIP & EXHIBIT BROCHURE‘Remarkable month’ 16 In proponents of a quick switch by the US to car- bon-free forms of energy, new data on recent and future oil and gas supply might induce squirming Reality will do that. December, reported the American Petroleum Institute, was “a temarkable month.” Average production of crude oil set a monthly record at 117 million béd. Production of NGL set a record at 48 million b/d. Exports of crude oil tied No- vember’ record level of 2.4 million b/d, For all of 2018, US output of liquid fuels increased by 2.1 million byel—“the greatest addition to supply that the world has ever seen in a single year,” said APL Chief Economist Dean Forman, More in prospect ‘According to the US Energy Information Adminis- tration’s Annual Energy Outlook, more is in pros- pect. In the reference case, US crude production sets annual records through 2027 and remains above 14 million bd through 2040. Production of ‘what EIA calls natural gas plant liquids reaches 6 mnillion b/d by 2029. Gas production grows by 7%/ year through 2020 and by 1%/year afterward. Com- bined with slower growth in energy consumption, the new supply of crude oil, as,and gas liquids and expected trade in coal make the US a net exporter of energy in 2020. For a country with energy policies predicated for three decades on assumptions of energy short age and anxiety about reliance on imported oil, reversal of the US position in energy trade is a dazzling achievement. And for pressure groups ‘opposed to new supply and use of fossil energy, it’s calamitous, They know the huge potential of shales and other low-permeability reservoirs, made accessible by technology and knowledge about the subsurface, means the Age of Petroleum will not soon end for reasons of geology. With nat- ural limitation of oil and gas supply diminishingly compelling to policy-making, they now demand that fluid hydrocarbons be left in the ground to abate warming of the atmosphere. And they treat ‘energy decisions as political contests between in- terests of "the people” and those of nefarious cor- porations, ‘Their perspective is blinding. Oil-company ex- coutives did not don yellow jackets and march in French cities to protest energy costs raised by a government determined to show leadership in the mitigation of climate change. People hurt by zeal- ‘ous governance did that. More people will be hurt to whatever extent governments decide to fore- swear affordable energy in favor of costly alterna- tives. And more political turmoil can be expected. il and gas companies of course have interests to protect against attacks against their abilities 10 conduct business. But energy consumers have parallel interests just as strong. To portray energy policy-making as a clash between corporate and ‘individual interests overlooks much—nearly ev- exything, in fact. Companies and consumers are not the only constituencies hurt when governments yield to ‘keep-it-in-the-ground activism. Governments hurt themselves by crimping income from resource de- ‘velopment if they're lucky enough to have it. APL estimates the US government receives $70 millionAlay in taxes, royalties, and rents paid by the oil and gas industry. Against a $4 trillion eral budget, that's not much. But over a year} nearly enough to cover 2018 spending of, say, Department of the Interior. And the total do account for the incomes, ancillary commerce, related payments to federal, state, and local gov- cernments associated with oil and gas work: Political reality If BIA projections hold true, economic and fiscal benefits to the US from resource development will grow. If, however, the government enacts policies that discourage oil and gas work, as it persistently tried to do during the administration of Barack ‘Obama, the economy will suffer, government rev- enue from resource development will fll, and pres sure will grow for compensation via tax-rate hikes on individuals and businesses. Political prospects of the latter scenario are not favorable Taxpayers dislike rate hikes as much as con- ssumers dislike energy-price increases—especially those imposed by policy. This, t00, is simple real- ity. I’senough to make an activist squirm. Ml (011 & Gas Journal | Feb. 4, 2019SLUT fle CTE MARCH 5-7, 2019 | SAN ANTONIO, TX USA HENRY B. GONZALEZ CONVENTION CENTER | WW/AW.SUBSEATIEBACKFORUM.COM ch maconci sg Poets AFEYGENERAL INTEREST Nick Snow Washington Ecitor The Trump administrati its promise to reform fede luring Barack Obama's presidency that went too far, officials from leading US oil and gas associa- ons told Oil & Gas Journal. But a prolonged par- al government shutdown and tariffs or quotas on specialty steel imports could cloud the 2019 Washington Oil and Gas outlook, they warned. In the last administration, about 12 federal programs took on state and local responsibilities. That’s changing, noted Independent Petroleum Association of America Pres. Barry Russell on Jan. 16. “Some policies need to be finalized. Tariffs and quotas affect our industry, and the US-Mexico: Canada Trade Act needs to be ratified. American Fuel & Petrochemical Mamufacturers Pres Chet Thompson said on Jan. 11, “So far, I haven't heard of any major impacts from the shutdown. As a former [US En: Mirormental Protection Agencyl employee, 'm sympathetic. The biggest effect could be on getting permits for projects, But it will take some time to deter: Mabe how great it will be. Associations also are is following through on | regulations enacted paring for more congressional oversight in 2019 now that the US House of Rep majority moved 0 Democrat from Republi- ‘can control following the 2018 mid- sentatives’ term elections. Several groups say ‘educating new members from both, parties about oil and gas issues will be more important than ever. It doesnt strike me that most Democrats have energy their crosshairs, They're certainly itself in interested in global climate change, but I'm not overly concerned about the industry's becoming a target in and-of itself” Natural Gas Supply Association Pres, Dena Wiggins in- dicated on Jan. 17. 20 Regulatory reforms draw cheers; shutdown and tariffs raise concerns Kathleen Sgamma, president of the Western En. ergy Alliance in Denver, said on Jan. 14 didn't get much done working with a slight Repub- lican majority in the House, It wont do much with a slight Democratic majority. Consequently, we're going to focus on working with the administration ‘Congress Energy infrastructure needs Many also said that improving the nation’ oil and gas trans- portation systems should not be overlooked in the broader national infrastructure debate ie will be important to mention that oil and gas pipe- lines are financed by private-sector investments. They don! involve public fin stions that building highways and bridges c tate Natural Gas Association of America Pres. Donald F, Santa observed on Jan, 15, ‘Association of Oil Pipe Lines Pres. Andrew J Black said on Jan, 16, "We hope that ste! tariffs go away, or the list of coil tries to which they apply is reduced. Next, we want co mie neing q| raise,” Inte In the last administration, about 12 federal programs took on state and local responsibilities. That’s changing, Some policies need to be finalized. Tariffs and quotas affect our industry, and the US-Mexico-Canada Trade Act needs to be ratified.’"— Independent Petroleum Association of America Pres. Barry Russell il & Gas Journal | Feb. 4, 2019certain that trade negotiations dont result in quotas forsteel which are just as unhelp- ful, and also create uncertainty Most crude and product pipeline opera- tors are not talking much about how quo tas and tariffs are hurting them, Black told OG). “They don't want customers going to ‘competitors. But it has to be hurting them” he said. No pipeline operator will sty that a project is not going forward, but some that have been planned are being combined with others because of the uncertain eco nomics, he added, Geiting pipeline routes approved also continues to be difficult in several instances, Wiggins said the US Federal Energy Regu latory Commission is doing a good job as it reviews proposed projects, but opponents ‘often challenge its decisions. Cost overruns for the Equitable and Mountain Valley proj ects have reached millions of dollars, she pointed out ‘Opponents have a right to express their views, but the energy industry, from the wellhead to the burner tip, needs to doa better job making the case that oil and gas are important parts of the NGSASs president said. More attention needs to be paid in the US Northeast, where US energy mix and will remain so in the future, much of this obstruction harms consumers, Wiggins contin- ued. “What's going on in New York is particularly egregious. People elect lawmakers to represent their interests, but when the Department of Environmental Conservation used its au- GBrity under the Clean Water Act to stop an interstate gas (Pipe linc, it affected consumers in other states,” she said “Congress didn't get much done working with a slight Republican majority in the House. It won't do much with a slight Democratic majority, Consequently, we're going to focus on working with the administration.”"—Western Energy Alliance Pres. Kathleen Sgamma Violating cooperative federalism Santa said, “If these states acted pursuant to state law, that would be one thing, However, they're acting under the CWA for political purposes. We think they'te violating the concept of cooperative federalism. We hope that other siates which are affected, whether as gas producers or consumers, will weigh in.” FERC, in some cases, has ruled against this ma neuer because the state agency did not act within the time frame outlined in the CWA, he added INGAA Vice-Pres. for Legislative Affairs Martin E. Ed. wards noted, “There's a nexus between the consumer and environmental angle, I think environmental politics afBp winning out.” Reauthorization of the 1968 Pipeline Safety Act, which historically has been bifl ll & Gas Journal | Feb. 4, 2019 “We hope that steel tariffs go away, or the list of countries to which they apply is reduced. Next, we want to make certain that trade negotiations don't result in quotas for steel, which are just as unhelpful, and create uncertainty.”"—Association of Oil Pipe Lines Pres. Andrew J. Black tisan, tops the interstate gas pipelindiige sociation’s 2019 congressional agentdaye Edwards told OG}. “t will be important to educate policymakers about pipeline infrastructure’s importance, he said Santa said, “The administration did a lot to get reauthorization moving, par- ticularly [the US Pipeline & Hazardous Material Safety Adminis 1 pipe- line safety advisory committee, which went through a big complex rule and ‘came up with some major changes. This could be the biggest rewrite in years. Its pretty consequenti Santa said he also saw a growing fo- ‘cus on pipeline security in 2018 because of the aclministration’s emphasis on resil- ience. Physical and cybersecurity are dy- namicareas where the US Departments of Energy and Homeland Security and theGENERAL INTEREST Transportation Security Adminis- tration are involved, Santa said, ‘While there are areas that TSA. says can be improved, that’s not 10 say that pipelines aren't working to address serious risks,” Santa said, “This is eritical infrastructure that provides energy for our economy. We should be sharing threat infor- mation and best practices to make doing the best pos- certain y sible job The Permian basin’s production growth is a dramatic example of the need for more domestic pipe- lines, AOPEs Black said. “When such a big supply is involved, more projects can move ahead. FERC has lone a wonderful job of review- ing and authorizing them.” he told OG). “Pipelines will catch up once the production ‘grows, I's how the market works, Steel tariffs, quotas ‘We expect to See a lot of activity in Congress, but don't expect it to turn into legislation,” IPAA Exec utive Vice-Pres. Lee O. Fuller said, The administra- tion isa diferent story, with its tariffs and quotas con tubular see, he added The quota agreement it reached with South Korea, where {quotas were based on upstream oil and gas demand for spe- ry products in 2015, 2016, and 2017, is the apparent el, Fuller said. The problem is that demand was not high “If thes “What's going on in New York is particularly egregious. People elect lawmakers to represent their interests, but when the Department of Environmental Conservation used its authority under the Clean Water Act to stop an interstate gas pipeline, it affected consumers in other states.’ —Natural Gas Supply Association Pres. Dena Wiggins those years anda 70% quota would hit around 32% of current demand after which tubular goods could not be imported, he noted The quota structure threatens US energy domi nance. We also would not like 10 see quotas ad- opted for imports from Canada and Mexico,” Fuller said. Some pipelines are being built, with sched- uled 2019-20 completions, but they all may not be constructed because they are based on using im- ported steel, which would be subject to quotas, he added. Stee! also represents about 10% of the costs in drilling a well, which would be affected if quotas are adopted, he said AU EPA, a main issue for upstream independents is pected to be proposed m ane regulation revisions, er told OG). “Were focu! fates acted pursuant to on the treatment of low-pro- state law, that would be one thing, duction wells” he sid. “When However, they're acting under the EPA proposed its 2016 regula- tions, it proposed excluding F CWA for political purposes. We low-produiction wells from think they're violating the concept fugitive emission control re- quirements, But the exclusion of cooperative federalism. We oie alee hope that other states which are In 2017, EPA revised the affected, whether as gas producers or consumers, will weigh in.— inva way ve Ui Interstate Natural Gas Association rule and restored the low- production exclusion “but not Fuller said. I excluded 15 béd wells, but not those producing at 20 bid, of America Pres. Donald F. Santa je explained "We think FPA isn't familiar with low-pro- duction well dynamics, We'd like to see it wait on imposing (01 & Gas Journal | Feb, 4, 2019