Steve Hendrickson
Cypress
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Articles by Steve Hendrickson
A Cost Benefit Analysis of Increased OCS Bonding | JD Supra
The Opportune 2023 Study has been conducted to independently calculate the OCS plugging and abandonment (P&A) liability, assess the risk such liability poses to the U.S. taxpayer, and perform a cost-benefit analysis of how the Proposed Rule would economically affect the offshore oil and gas industry (the Industry), Gulf Coast and the United States.
How can I convert a dataframe that contains geometries to an sf object?
Asked today Viewed 4 times I have an sf object that contains X line segment geometries, but has no columns of attribute data. I have a separate dataframe that contains all the attribute data in the same order as the geometries. When I combine the two using cbind, I get a dataframe that contains the geometries column I need to intersect these geometries with geometries in another object. They both have the same number of rows.
Landmark Legislation Aims to Boost Carbon Capture-Will It?
Steve Hendrickson and Bryan Sims, Opportune Thu, 11/03/2022 - 10:00 AM President Joe Biden the landmark Inflation Reduction Act (IRA) into law on Aug. 15, which contains several renewable energy tax breaks to help companies and U.S. consumers transition to clean energy.
US Natural Gas: An Ongoing Success Story | JD Supra
Natural gas doesn’t tend to get as much attention as oil does, probably because we all buy gasoline directly every week, but much of our consumption of natural gas is (electricity, food, and plastics, for instance). So you may not have noticed that U.S. natural gas production has fully recovered from the pandemic and has continued to set new records. The U.S. Energy Information Administration (EIA) highlighted this success in the release of its recently released Natural Gas Annual Report.
US Inflation Reduction Act Aims To Give Carbon Capture A Boost, But Will It Take Off? | JD Supra
Find out why the new landmark legislation should provide a much-needed boost for the development of carbon capture projects in the U.S. On August 16, 2022, President Biden the landmark “Inflation Reduction Act” (IRA) into law, which contains several renewable energy tax breaks to help companies and U.S. consumers transition to clean energy.
The Limits Of Interdependence | JD Supra
RED President Steve Hendrickson discusses why Ukraine’s gas reserves may have influenced Russia’s decision to invade them. I read a very informative essay recently in Foreign Affairs magazine, titled “When Trade Leads to War: China, Russia and the Limits of Interdependence”, by Dale Copeland. It examines the Russian invasion of Ukraine and China’s posture towards Taiwan from the perspective of access to raw materials and end-markets, rather than strictly ideological viewpoints.
SPR Crude Oil Releases—It’s Complicated | JD Supra
There have been media reports recently that have discussed the disposition of crude oil that is being released from the Strategic Petroleum Reserve (SPR). You may recall that the Biden Administration ordered emergency sales of approximately 1 million barrels per day (MMbbl/d) from April through October 2022, with the hope of increasing oil supply and providing some price relief to U.S. gasoline prices.
Volatile Market Conditions Create Unique Challenges To Managing Price Risk | JD Supra
I had the pleasure of moderating one of the panels at the World Oilman’s Minerals and Royalty Conference (MARC) held in Houston. The title of our session was “Managing Risk”, which of course is an extremely broad topic. We focused our discussion specifically on , and we got some great insights from two industry veterans in energy trading: Greg Broussard, Managing Director and Global Head of Financial Trading for Cargill; and John Saucer, Head of Crude Oil Markets for Mobius Risk Group.
Overview: How Russian Invasion of Ukraine Increases Importance of LNG
LNG has been an important part of the European energy mix for a long time, however, and is poised to become more significant in response to the Russian invasion of Ukraine, Hendrickson writes. (Source: Shutterstock.com) From the United States’ standpoint, LNG has been an on-again, off-again energy product over the last couple of decades.
E&P Spotlight: Alpine High Revisited
The discovery of the Alpine High play in the southern Delaware Basin was announced by Apache Corp. (now APA Corp.) in 2016. (Source: APA Corp.) The discovery of the Alpine High play in the southern Delaware Basin was announced by Apache Corp. (now APA Corp.) in 2016. Over the next several years they drilled approximately 225 horizontal wells but decided to suspend further development in 2020.
Opinion: Is Oil Price Volatility Increasing in the Long Run?
In addition to several other factors, Hendrickson believes that the greater connectedness of our economies and the flow of information will lead to more rapid oil price swings as events in one part of the world are more quickly felt elsewhere. (Source: Hart Energy) If you’re like me, you probably feel that the volatility of oil prices has been very high in the past couple of years. After all, oil prices were well above $100/bbl recently and had a negative price scarcely two years ago.
Is Oil Price Volatility Increasing In The Long Run? | JD Supra
RED President Steve Hendrickson examines oil price volatility in a historical context. If you’re like me, you probably feel that the volatility of oil prices has been very high in the past couple of years. After all, oil prices were well above $100/bbl recently and had a negative price scarcely two years ago. And we’re experiencing significant global events that have an economic impact that influences oil prices, particularly the COVID pandemic and the Russian invasion of Ukraine.
Opinion: The Elusiveness of US Energy Independence
The closest I’ve seen the U.S. come to this in my career was a few years ago when we hit peak production, Hendrickson wrote in a weekly column. (Source: Hart Energy) The Russian invasion of Ukraine has wreaked havoc on global crude oil markets to say the least. According to the International Energy Agency, Russia produces approximately 11.3 million bbl/d of crude oil, condensate and NGL, and they export a little under 8 million bbl/d.
Closer Look: US Imports of Russian Oil
So why does the U.S. import crude and petroleum products from Russia? According to a fact sheet released last week by the American Fuel & Petrochemical Manufacturers, it comes down to logistics, Hendrickson says. (Source: Shutterstock.com) Over the weekend, I saw a comment (a tweet, actually) by a politician conflating our imports of oil from Russia with the Keystone XL pipeline. He claimed that if Keystone was approved, we wouldn’t import any crude from Russia.
Oil Price Spike: Who Will Respond First, US Operators or OPEC+
My expectation is that the U.S. oil and gas industry will respond, but more slowly than in the past, until capital and other constraints are resolved, Hendrickson writes. (Source: Hart Energy) Over the last several months (and right up to today) some of the headlines we’ve highlighted in our “Selected Industry Headlines” have addressed the slower-than-expected response of operators to increase drilling activity as oil prices have risen.
Why Are E&Ps Slow To Respond To Higher Oil Prices? | JD Supra
Find out what’s behind the muted response of North American oil drilling activity and how it compares with the recent rise in oil prices. Over the last several months (and right up to today) some of the headlines published in various media outlets have addressed the slower-than-expected response of operators to increase drilling activity as oil prices have risen.
Column: Call for More Upstream Open-source Computing
(Source: Shutterstock.com) Steve Hendrickson, Ralph E. Davis Associates Thu, 02/17/2022 - 03:00 PM A few years ago, I needed to create maps for an engineering project I was consulting on and started looking for software to assist me. At the time, I was a one-man consultancy and so the cost was a concern, especially since I rarely needed GIS software. I found the open-source product QGIS, however, and was surprised how well it worked and how (relatively) easy it was to learn.
Opinion: Gulf of Mexico Lease Sale Ruling Sets up a Lose-lose Situation
At issue is how the production of hydrocarbons from these leases would affect non-U.S. hydrocarbon consumption and the greenhouse gases that would result. (Source: Shutterstock.com) Last week, the U.S. District Court for the District of Columbia released a ruling that overturned the results of last fall’s Federal Lease Sale 257.
Key Takeaways From The IPAA Private Capital Conference | JD Supra
RED President Steve Hendrickson highlights some of the key takeaways from last week’s Private Capital Conference organized by the IPAA. Last week, the Independent Petroleum Associate of America (IPAA) hosted its annual Private Capital Conference in Houston. This year’s theme was “The Realities of the Energy Transition” and I thought it was one of the better conferences I’ve attended in terms of learning, new, up-to-date information.
Column: Industry’s Response to Earthquake Concerns in the Permian Basin
Here’s a closer look at recent seismic activity in the Permian Basin and how the oil and gas industry is responding. Steve Hendrickson, Ralph E.
Natural Gas Prices Take Another Ride
RED President Steve Hendrickson looks at the recent volatility in natural gas prices and what the future might hold for the commodity. (Source: Shutterstock.com) Just over two months ago we were entering the winter heating season enjoying the highest U.S. natural gas prices in almost eight years.
CCUS: Understanding The Class VI Permitting Process | JD Supra
Steve Hendrickson, President, and John Beaird, Vice President, of Ralph E. Davis Associates, an Opportune LLP company, discuss why the Class VI permitting process with state and federal regulators for carbon capture, utilization, and storage (CCUS) projects are lengthy and costly, why not all carbon dioxide is created equal, and why capturing and storing carbon dioxide isn’t economical without tax incentives, and more. Embed Press CTRL+C to copy embed code to clipboard
Latest Gulf of Mexico Lease Sale a Land Grab for Carbon Capture?
The standard form of lease on the BOEM website for oil and gas development restricts the lessee’s activities to oil and gas production only, Hendrickson writes. (Source: Shutterstock.com) Earlier this month, the U.S. Bureau of Ocean Energy Management (BOEM) released the results of OCS Sale 257. One of the interesting observations was the large number of contiguous blocks that were leased in the western Gulf of Mexico.
Drilling Down: Geothermal Energy Opportunities, Challenges
Geothermal energy may be getting a lot of attention recently, but several technical challenges still need to be resolved to bring geothermal into the mainstream, writes Steve Hendrickson, president of Ralph E. Davis Associates (RED), an Opportune LLP company. (Source: Shutterstock.com) Geothermal energy has been in use for over 100 years but it has never been a significant part of our energy mix.
Opinion: Are BOEs Really Equivalent?
A typical error would be for someone to see a value of boe and assume that each is worth the price of a barrel of oil, which for black oils isn’t a bad assumption. However, as the gas-oil ratio increases, it’s inaccurate. (Source: Hart Energy) This is an excerpt from the Ralph E. Davis Associates (RED) Weekly E&P Update Newsletter. Last week, industry colleague Dwayne Purvis raised an interesting point in a LinkedIn post about the use of “barrels of oil equivalent” (boe) metrics.
Natural Gas Snapshot: What’s Going On?
This is an excerpt from the Ralph E. Davis Associates (RED) Weekly E&P Update Newsletter. It seems that it was less than a year ago when the outlook for natural gas prices could be summed up pretty quickly—“sub-$3 forever.” The oil and gas business is always full of surprises, however, and today we find ourselves with Henry Hub prices over $5/MMBtu, and a forward price curve that, while backwardated, stays above the curve we saw in the spring. What’s going on?
Helium’s Rising Fortunes in Upstream Oil and Gas Development
This is an excerpt from the Ralph E. Davis Associates (RED) Weekly E&P Update Newsletter. An article in this month’s edition of the Journal of Petroleum Technology discussed some recent trends in helium resource development. Helium is an interesting substance because its unique chemical and physical properties make it suitable for specialized applications. Due to its inertness and low density, helium doesn’t form stable compounds and escapes the atmosphere readily.
5 Key Takeaways From NAPE Summit | JD Supra
Last week, the North American Prospect Expo (NAPE) Summit held its first in-person event since the start of the pandemic. It was great to be back at the George R. Brown Convention Center to have a chance to see what’s new in the industry and catch up with old colleagues. Unfortunately, though, the latest surge in COVID cases seemed to put a damper on attendance, so take these observations with a big grain of salt.
NAPE 2021 Recap: Unconventional Deals, Fewer Minerals, Renewables Buzz
This is an excerpt from the Ralph E. Davis Associates (RED) Weekly E&P Update Newsletter. Last week, the NAPE Summit held its first in-person event since the start of the pandemic. It was great to be back at the George R. Brown Convention Center to have a chance to see what’s new in the industry and catch up with old colleagues. Unfortunately, though, the latest surge in COVID cases seemed to put a damper on attendance, so take these observations with a big grain of salt.
‘Blue’ Hydrogen Blues? Reexamining Blue Hydrogen’s Carbon Footprint
Your browser does not support the audio element. This is an excerpt from the Ralph E. Davis Associates (RED) Weekly E&P Update Newsletter. Recently, we described the different colors used to differentiate various sources of hydrogen that can be used as an electricity-generating or transportation fuel. Among these was “blue” hydrogen, which describes hydrogen made from methane from natural gas using steam methane reforming (SMR).
Terminal Decline in Decline Curve Analysis of Oil Wells
Your browser does not support the audio element. This is an excerpt from the Ralph E. Davis Associates (RED) Weekly E&P Update Newsletter. If you Google the phrase “terminal decline,” you’re likely to get a lot of unpleasant results about the rapid loss of cognitive function immediately preceding death. Let’s start by clarifying that’s not what we’re talking about.
Opinion: Industry Increases Its Focus on Abandonment of Old Wells
Your browser does not support the audio element. Presented by: Editor's note: This column appears in the new E&P newsletter. Subscribe to the E&P newsletter here. Perhaps you’ve noticed lately an increased level of attention to the abandonment of old oil and gas wells and, like me, are wondering what is driving it.
Op-ed: What’s Driving Growing Focus on Abandonment of Old Wells
Your browser does not support the audio element. This is an excerpt from the Ralph E. Davis Associates (RED) Weekly E&P Update Newsletter. Perhaps you’ve noticed lately that an increased level of attention is going to the abandonment of oil and gas wells, and if you’re like me, wondered what’s behind it.
Comparing Underground Natural Gas Storage With Deep Saline Injection Of Carbon Dioxide | JD Supra
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Op-ed: Is the Electric Vehicle Game About to Change?
Your browser does not support the audio element. This is an excerpt from the Ralph E. Davis Associates (RED) Weekly E&P Update Newsletter. Electric vehicles (EVs) and their hybrid cousins have been a long time coming. It seems all of the automakers have dabbled in them at one time or another, and to varying degrees, but most had small production numbers and failed to generate a profit.
Op-ed: Upstream Consolidations Gaining Steam?
Your browser does not support the audio element. This is an excerpt from the Ralph E. Davis Associates (RED) Weekly E&P Update Newsletter. The drop in oil prices that began in 2019 (and was greatly amplified by the COVID-19 pandemic) led to a paradigm shift in the U.S. upstream oil and gas business.
Realities of Type Well Profiles in Unconventional Oil and Gas
Your browser does not support the audio element. This is an excerpt from the Ralph E. Davis Associates (RED) Weekly E&P Update Newsletter. An article highlighted last week was published in the Society of Petroleum Engineers Journal of Petroleum Technology, titled “Does Physics Really Matter in Unconventionals?”. We see this question arise quite a bit, and while there isn’t a simple answer, our opinion is that it matters, but it may not be useful as one would hope, and here’s why.
Upstream Oil and Gas Trends: Brightness on the Horizon?
Your browser does not support the audio element. This is an excerpt from the Ralph E. Davis Associates (RED) Weekly E&P Update Newsletter. It seems that the last few weeks have brought some encouraging pieces of news to the upstream oil and gas business. Here’s a brief list of some of those bright spots.
Getting E&Ps Started in CCUS
Your browser does not support the audio element. Carbon capture, sequestration, utilization and storage (CCUS) solutions are complex interdisciplinary projects that require the collaboration of large, diverse teams to design, construct and operate. Because of the significant time and cost of full-scale design, the starting point of these projects is typically the pre-feasibility study.
E&P Trends: Upstream Oil & Gas Scale Premium Persists | JD Supra
Over the last couple of years at least, we’ve observed a consistent premium awarded to larger upstream companies. Now that many companies have reported their 2020 results, we thought we’d take a fresh look. Our sample doesn’t include every upstream name, and there are unfortunately quite a few names that we’ve looked at previously that are no longer publicly traded. Some went through bankruptcy and are now private; others merged with another company.
E&P Trends: Upstream Scale Premium Persists
Your browser does not support the audio element. Over the last couple of years at least, we’ve observed a consistent premium awarded to larger upstream companies. Now that many companies have reported their 2020 results, we thought we’d take a fresh look. Our sample doesn’t include every upstream name, and there are unfortunately quite a few names that we’ve looked at previously that are no longer publicly traded. Some went through bankruptcy and now private; others merged with another company.
Carbon Capture Rising | JD Supra
Over the last few months, I’ve seen a great increase in the number of articles, papers, and webinars addressing issues related to carbon capture, utilization, and storage (CCUS), but this isn’t the first time I’ve seen heightened interest in the topic. In 2009, Congress attempted to pass legislation that would’ve established a cap-and-trade regime for CO2 emissions.
Op-ed: ‘Seek First to Understand’ Texas Winter Storm
Your browser does not support the audio element. [Editor’s note: Opinions expressed by the author are their own.] Texas seems to have begun a return to normalcy after the coldest weather in a century left millions without power and water for days in sub-freezing temperatures. In Houston, most customers have had their power restored and municipal water pressure is rising.
E&P Deep Dive: Dead DUCs?
Your browser does not support the audio element. In each edition of the Ralph E. Davis Associates (RED) Weekly E&P Update Newsletter, we include a graphic showing the U.S. Energy Information Administration’s (EIA) estimate of the number of “drilled but uncompleted wells” in the U.S. The so-called “DUCs” are often pointed to as a ready supply of new production that may come online as soon as oil and gas prices start to rise and would quickly throw cold water on any price rally.
Here Are 4 Reasons Causing ‘Dead’ DUCs | JD Supra
In each edition of our weekly newsletter, we include a graphic showing the U.S. Energy Information Administration’s (EIA) estimate of the number of “drilled but uncompleted wells” in the U.S. The so-called “DUCs” are often pointed to as a ready supply of new production that may come online as soon as oil and gas prices start to rise and would quickly throw cold water on any price rally.
Can Positive Free Cash Flow Be Achieved In Today’s Upstream Oil & Gas Industry? | JD Supra
Over the last few years, investors in the oil and gas industry have pivoted from acquiring land and growing production to seeking companies that can maintain production while living within their cash flow. The shift in emphasis is the consequence of the poor drilling returns that many companies experienced (much of which was significantly debt-funded), the related deterioration of the M&A market for undeveloped assets and a desire of investors to enforce greater capital discipline.
Increase Revenue With This Simple Revenue Management Housekeeping Chore
any airline revenue management teams take advantage of heuristics in the form of optimization profiles to efficiently boost RASK performance. To make this more manageable, they associate flights into groupings that share similar commercial dynamics. Management efficiency is enhanced because analysts can more often apply a common set of business rules when optimizing multiple routes and departure dates.
Op-ed: Another Look at SEC Investigation into Exxon’s Permian Valuation
Your browser does not support the audio element. [Editor’s note: Opinions expressed by the author are their own.] The Wall Street Journal reported on Jan. 15 the U.S. Securities Exchange Commission (SEC) has opened an investigation into Exxon Mobil Corp.’s proved reserves estimates associated with its Delaware Basin assets.
Top 3 Energy Trends To Watch In 2021 | JD Supra
I hope each of you had a happy and safe holiday season despite the ongoing challenges of the pandemic. 2020 was perhaps the most difficult year many of us have faced. While we’re all anxious to put 2020 behind us and there are signs of hope, we aren’t out of the woods yet and I expect the first half of 2021 to continue to be a trying time for our country, economy, and industry.
Prose and Contrails: Commercial Aviation Recovery From Covid-19
While many airlines have recently published forward-looking flight schedules that suggest aggressive rebounds in operations during mid-late summer, trends in the first half of June tell a different story. Flight operations among the Aero 80 carriers through 15 June continue to show mostly cautious reintroductions of capacity cut in response to the Covid-19 pandemic. Supply in most regions continues to languish in relatively flat fashion since the lows reached in mid-April.
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