Flint Hills Resources Plans $250 Million Refinery Expansion

Flint Hills Resources' West Refinery in Corpus Christi is getting $250 million in upgrades. The improvements will allow the company to process more Eagle Ford crude and reduce emissions. The upgrades wouldn't add capacity, but would allow the company to process more South Texas crude. Flint Hills operates two Corpus Christi refineries. The West Refinery that will be upgraded refines 230,000 barrels of oil per day and the East Refinery refines 70,000 barrels per day. Currently, only 50% of the crude processed in the West Refinery is sourced from the Eagle Ford, but additional processing facilities will allow Flint Hills to maximize the use of local supply. The expansion will not be noticeable to the untrained eye and will add 1,000 jobs at the peak of construction.

“If we receive the final go-ahead and appropriate permits the site will see construction activity for about two years, with as many as 1,000 additional workers on site on many days,” Gaarder added. “However, this project will not require more land nor will new equipment be easily noticed from I-37.” Flint Hills also is establishing a project-specific, near-neighbor panel.

Flint does have to file for permits from both the TCEQ and the EPA before construction can start. Read the full news release at fhr.com

SM Energy Eagle Ford Production Surpasses 200 MMCFE/d in Q2 2012

SM Energy Eagle Ford Acreage Map

SM Energy's Eagle Ford production eclipsed 200 mmcfe/d in the second quarter and the company's well completion schedule will be weighted toward the latter half of the year. Even though production grew 16% over the first quarter, the numbers were below expectations due to downstream pipeline curtailments and delays in receiving equipment.

SM completed 26 operated wells in the first half of the year and has seven operated drilling rigs running as of August. A total of 67 wells are planned to be completed during 2012, so 41 of those will come in Q3 and Q4.

SM Energy's Non-Operated Acreage

The company also has a significant non-operated position that is operated by Anadarko Petroleum. Production from Anadarko operated acreage averaged 9.5 mboe/d in the second quarter. Anadarko has 9 drilling rigs and 1 spudder rig working the Eagle Ford and is expected to hold that level through the remainder of the year.

In a complex twist to joint venture agreements, Anadarko has increased the pace of expansion of its midstream assets, which in turn increase the capital needs of SM Energy for the year. Midstream expenses are not treated the same at development expenses and are not carried under the JV agreement with Mitsui.

Job Fair - Texas Economic Development & Energy Summit - Aug 23, 2012

Don't miss the Eagle Ford job fair planned for Thursday from 9:30-2:30 at the San Antonio Convention Center.

Where:
San Antonio Convention Center Exhibit Hall 103AB 200 East Market Street San Antonio, 78205

What to Expect:

• Veterans will be welcomed at 9:30 and the job fair will open to the general public at 10:30
• 50+ employers and community resource agencies to be in attendance

Announced companies participating include:

Alamo Area COG; Airstream Renewables; Bill Hall, Jr. Trucking; CPS Energy; Chesapeake Energy; Fed EX; H&R Block; Halliburton; J. Crew; Lewis Energy; Mission Pharmacal; National Oilwell Varco; Shale Tank Truck; Tesoro Companies; Thomas Petroleum; Transcom; Shale Tank Truck; West Corporation; 7 Up/Snapple; SER Jobs for Progress; Good Careers Academy; Bexar Couty VSO; Texas Veterans Leadership Program; San Antonio Coliation for Veterans, Military Officers Association of America

Eagle Ford Natural Gas is Headed for Mexico - Major Pipeline Expansions Planned

Gas Pipeline Arid

Eagle Ford natural gas pipeline expansions are headed for Mexico. An $8 billion expansion of Mexican natural gas infrastructure is being pushed forward. The early focus is on industrial cities in the northern half of the country where a $3 billion expansion is planned.

"Mexico has a unique opportunity, we have access to the world's cheapest gas," Mexican Energy Minister Jordy Herrera said of the U.S. supply in announcing the new pipeline plans earlier this year. "This is competitiveness for the industry of our country."

U.S. companies are lining up to help supply and construct the proposed Mexican infrastructure. Expect to see companies like Kinder Morgan reverse the direction of some of its current natural gas flows and expand pipelines into Mexico. The Eagle Ford currently produces almost 3 bcf/d, but that number could almost triple over the next five years. That's a lot of natural gas to be absorbed in South Texas. Actually, its much more than the region can absorb. If 5+ bcf/d of additional supply comes online, the natural gas will need a market. That market will either come from Mexico or from across the globe shipped as LNG. Both pipelines and liquefaction facilities come with big price tags, but don't expect PEMEX (Mexico's national oil company) to wait around. The country needs natural gas and the Eagle Ford is positioned well to answer.

Read the full story detailing Mexico's plans at chron.com

Will School Districts Be Forced to Build Housing?

Eagle Ford housing issues will likely continue until permanent housing can can meet the needs of the population. In the mean time, we're going to see investments from places you might not expect. School districts are the latest to enter the fold in home development. Oilfield workers have brought their families and snapped up available homes across South Texas. That same influx of people and students has increased the need for teachers. The new teachers in turn face the challenge of finding affordable homes. (FYI - there aren't any)

McMullen County ISD has built homes before and it along with other school districts are determining the best way to invest this time around. With rental homes going for $2,000 per month or more, affordable housing is more scarce than ever. The school districts will have to help or open positions will not likely be filled.

Three Rivers recently purchased a piece of land and placed two mobile homes on the property as a short-term solution. Rohrbach said they've budgeted $100,000 to get the project started. Long-term, the plan is to build houses or duplexes on the land. More money will be approved as needed, Rohrbach said.

Rent will be reasonable, he said, at about $500 or $600 a month.

Read the full story addressing the issue at caller.com