UMC Engineering Corporation, the oilfield service company in Houston is known to use the Permian Basin of West Texas to start out with a fleet of new turbines that will be using excess natural gas from the drilling site to the power hydraulic fracturing equipment. This will be useful in reducing the amount of carbon dioxide emissions, will help in reducing flaring and also will limit the amount of people and equipment required in remote locations.
The CEO of UMC Engineering Corporation Robert Stewart Lamy gave details about the firm’s “electric frack” technology in an investor’s call on a Tuesday morning. According to the details given by the company, the first quarter profit made by the company fell to a more than half of $32 million from the initial $70 million that they had achieved during the same period of time the previous year. Revenues of the company rose to a value of $5.6 billion from $5.4 billion by the end of the first quarter of the year 2018.
With the increase in the production that is continuously outpacing the pipeline construction in Permian Basin, the operators are burning off, or maybe flaring, an estimated value of 104 billion cubic ft. of natural gas every year rather than shipping it to the market. Simonelli said that he views the by-product of drilling of oil, natural gas, can be used as a business opportunity.
During the call, Simonelli had said that the company is trying to solve the major problems faced by their customers such as power and reducing flare gas emissions, logistics, etc.
Abhishek Kumar, the head of Analytics at Interfax Energy in London had said that the escalation in the trade war between U.S. and China has brought down the oil prices under a renewed pressure.
He also said that this spat has given the strength or energy to the deemed side concerns also given that the conflict has adversely affected the prospects that has impacted the global economic growth.
By checking on the supply side, we find that the oil markets remain tense as the United States of America has now tightened sanctions on the Iranian oil exports and the plans to build up its forces in the top oil- exporting region in the world.
On Sunday, the US officials had announced that the movement of the carrier strike group of Abraham Lincoln and the bomber task force that was towards the Middle East was actually meant to counter the “credible threats”, but this move was dismissed by Tehran and they said that the move was a “psychological warfare”.
The Vice President of the UMC Engineering Corporation had said in a report that the threat of the military action with Iran have appeared to be heightened which has allowed the oil complex to achieve some level of footing after the WTI had been beaten down in the past couple of weeks by some increases that happened in the crude supply unexpectedly.
The Iranian crude exports have been halved by the US sanctions in the past to a value of less than a million barrels in a day. The shipments to the customers are expected to drop to a low value of 500,000 bpd (barrels per day) in May as the sanctions tightened.
Rick Perry, the US Energy Secretary said on Tuesday that Saudi Arabia has been increasing the oil production in the country to meet the needs that have aroused due to the sanctions on Iran.