Category Archives: Oil & Gas Industry

Increases in Oil and Gas Prices

Key Price Increases Oil and Gas Faces in 2020

As the oil and gas industry enters into a new year and new decade, the dedicated team at Pro-Gas, LLC are already looking ahead for our loyal production facilities and customers.

The risk of spiking oil prices is especially scary for production facilities that rely on being able to carry out day to day duties on a set budget. While the markets can be unpredictable, there are some risks that have begun to rear their heads for the near future.

Here are three of the risks the oil and gas landscape faces in 2020 and how our services can help you stay in financial control throughout the new year.

High Risk with Fossil Fuel Demand Peaking

According to an article from Carbon Tracker, fossil fuel demand will peak within the next decade. Due to the rapid growth of renewable resources and the decline in their infrastructure costs, the energy transition poses serious risks to industries that rely on fossil fuels as their main energy resource.

When peak oil becomes a reality for the industry, production will decline and demand will rise, resulting in increased prices in fossil fuel production and general distribution. 

Increase in Geopolitical Tension

With rising tension between the United States and Iran, the geopolitical instability is likely to result in increased oil prices across the board. With global tension on the table, it’s possible that oil supplies in 2020 could twindle and cause soaring prices. 

It’s too soon in the year to tell, and according to the International Energy Agency, it’s possible that other global producers could help to level out market prices in the near future.

How We Help Mitigate Seemingly Unavoidable Threats

The team at Pro-Gas, LLC has several approaches for helping our clients get through rate hikes and utilize their options to the benefit of their budgets. The key to overcoming threats within our industry is to get smart about the equipment being used on our sites.

When you work with our team, you invest in years of experience within the oil and gas industry. From NGL storage to efficient gas coolers, Pro-Gas, LLC has the services your business needs to see through any downfalls the year brings to oil and gas.

Navigate Sector Changes with Priority Power Management

Don’t let an uncertain energy market make your drill site uneasy. Get in touch with the trusted oil and gas team of Pro-Gas, LLC. We are ready to help you find different ways to help your facility navigate the uneasy production waters of 2020. Contact us today to take your first steps into efficient energy savings.

 

oil and gas

2020 Threats on the Horizon for Oil and Gas Production

Oil and gas production may have been on the uptick in past years, but recently and going into 2020, there are some serious threats to our industry. Smooth production is essential to providing oil and gas products to the public at a fair rate. When issues rear their heads, so do outstanding price hikes. 

Here’s a look at some of the top 2020 threats facilities across our industry must be on the lookout for in the new year.

Continued Oversupply and Weak Demand

2019 brought in one of the lowest amounts of oil demand. Based in part on the trade tensions between the U.S. and China, the global economy as a whole was impacted. 

Increased costs of oil created a surplus of supply and resulted in a drastic reduction in demand in the industry. Even though an early December trade deal could help to improve local demand, the International Energy Agency (IEA) reports that an oversupply still hangs over the global market, threatening further price increases due to reduced production.

Policy Changes in an Election Year

An election year is always considered a threat to the ease of drill site creation and general production. Although we can predict how specific candidates and parties will approach energy policies, the industry can only wait with bated breath to find out what actually transpires after a new President is elected.

Presidential policy changes beyond tariffs could result in further oversupply that harms production as a whole. Although a single policy won’t immensely stall oil and gas production, consecutive small changes eventually will add up.

Difficulty with Greenfield LNG Project Approval

Although there is a recent push for a greener energy industry, LNGs are still a necessary resource for many consumers. However, despite the growth of export in this coveted resource, our industry consistently faces difficulty getting desired long-term drill projects sanctioned.

Many greenfield developers may have a difficult time searching out new sites because most sanctioned projects are now brownfield sites that are working with accumulation that is on the decline.

While these issues were difficulties developers had to live with in 2019, they are expected to remain in effect for 2020 due to:

  • Continuously limited contract terms
  • Trade Tariffs
  • Low Oil Prices

Stay Up to Date on Industry News With Pro-Gas, LLC

Pro-Gas, LLC is a Texas-based provider of production equipment for the oil and gas industry. 

Trust in us to provide your site with a complete line of quality equipment, problem-solving services, and up to date information about the state of our industry.

We are ready to help your facility acquire reliable equipment. Contact us today to get started!

Modular Equipment Oil and Gas

Advantages of Modular Equipment in the Oil and Gas Industry

Oil and gas production relies on equipment to get sites through daily production quotas. Different equipment provides different advantages based on their design. 

One of the leading products we sell at Pro-Gas, LLC is designed with efficiency in mind and can benefit oil and gas facilities throughout 2020 and beyond. Find out why our skid-mounted fuel gas conditioners are in such high demand at production facilities across the nation.

Modular Equipment Offers Scheduling Advantages in the Oil and Gas Industry

Packaged systems like the JT Skids we offer at Pro-Gas, LLC help facilities like yours stay on production schedules. Modular products like ours aren’t stick built, so a project like a facility expansion would be a simple move because it eliminates some of the lag time involved with installing equipment on-site.

Also, the construction of oil and gas machinery can be complex, offsite builds typically help reduce any downtime or interference with facility scheduling.

The oil and natural gas industry has its own set of market drivers that make it unique. Learn about the four key drivers in the oil and gas industry.

Compact Design

Our systems pack a ton of efficiency and power for the facilities that use them. A modular package from Pro-Gas presents an ideal design that also has a small footprint. Skid-mounted equipment is made for mobility. 

In order for these products to be shipped, and installed with ease, smaller, compact design is essential.

Simple Installation Process

The ease of installation with modular systems is where this equipment really shines. Once your equipment is shipped onsite, all that needs to be done is:

  • Placing the equipment in its designated space
  • Tying the new equipment within the current facility’s setup

Usually, joining processes is a time-consuming task that results in unnecessary downtime. With packaged systems from Pro-Gas, you can minimize site downtime and get your equipment connected and working in no time!

Safe Relocation

On-site construction means your facility employees have an increased risk of injury in the process. When your company takes the assembly of its equipment out of the equation, you no longer have to worry about the risks involved with construction.

Also, skid-mounted equipment like our gas coolers and NGL storage units are easy to relocate if the need arises. Simply disconnect the equipment from your facility’s processes and make the necessary preparations for safe equipment relocation; no deconstruction or high-risk necessary.

Enjoy the Power of Modular Products with Pro-Gas, LLC!

Keep the functionality of your equipment simple with modular systems from Pro-Gas, LLC. Our products and services help keep facilities and drill sites alike, on schedule and with little downtime between installation. Help your site produce faster, and better. Get in touch with us today to find out more about our current products. Plus, learn more about how we are helping to meet the needs of oil and gas tools and equipment.

 

7 Ways Oil Impacts Our Lives

7 Surprising Ways Oil Impacts Our Lives

The team at Pro-Gas, LLC is passionate about oil. We provide support to production facilities nationwide that use natural materials to create products consumers use on a daily basis.

While most people know that oil helps fuel up cars and keep equipment running, there are quite a few surprising ways that the product is used under the radar with consumers.

Here are six “oil products” you can be thankful for this holiday season!

Chewing Gum

If you like a good stick of chewing gum throughout the day, thank petroleum for the long-lasting chewiness that it provides to this product!

That’s right gum bases stem from natural latex and petroleum products. So, the next time you pop a piece in your mouth, thank the oil and gas industry!

Lipstick

Petroleum products like crylates, coal tar colorants, and propylene glycol are found in most lipsticks. These oil and gas products are what give this cosmetic product the color that makes your lips stand out when you wear it!

Aspirin

Thanks to fuel treatment processes at drill sites, we have aspirin, a medication that helps millions of people throughout the world relieve headaches and fever.

Aspirin stems from the product benzene, which is a hydrocarbon that is extracted from petroleum during the production process.

Wrinkle-Resistant Fabric

Do you like putting your clothes on in the morning and not having to worry about ironing them? Well, fabrics like polyester that give users the benefits of wrinkle resistance come from oil found at drill sites. When different petroleum products are combined, they can create materials that literally put the clothes on our back.

General Plastics

Whenever you use plastic products, the oil and gas industry helped make that product a reality. Plastic requires crude oil for production and proves the versatility of this product within all different industries.

Guitar Strings

Although the petroleum itself won’t make your guitar licks slicker on their own, the nylon that stems from the product allows you to shred in the first place!

Pro-Gas, LLC Helps Facilities Near You Create Products for Everyday Life

If you are the manager of a facility or drill site, you need the best in equipment the industry has to offer. At Pro-Gas, LLC, we are a group of oil industry professionals with nearly 100 years of combined experience with oil and gas equipment. Trust us to provide your site with tech that streamlines your efficiency in 2020. Contact us today to find out more about our products.

 

Oil and Gas Streams

Exploring the Different Streams of the Oil and Gas Industry

Anyone who’s ever read or listened to news about the oil and gas industry knows that the terms upstream, midstream, and downstream exist. While most people think these are all completely different aspects of the industry, the truth is, they are all essentially connected. Without one sector of the industry, the others are rendered obsolete.

At Pro-Gas, LLC we provide products that serve all of the levels of the oil industry’s production process. From storage to delivery, we understand the importance of each of these industry branches.

The oil and natural gas industry has its own set of market drivers that make it unique. Learn about the four key drivers in the oil and gas industry.

Here are some facts about the different streams, their functions throughout the supply chain, and how they work together to keep our facilities production effective.

Defining the Upstream?

Upstream companies within the oil and gas industry are the sectors that explore and produce for our industry. People who work in the upstream production sector usually hold positions that include:

  • Rig operators
  • Chemical supply extraction
  • Deposit identification
  • Drilling wells
  • Material recovery from underground

These are typically the businesses and facilities that are at the top of the food chain in the industry. For example, Exxon-Mobil is an upstream company.

What is Midstream?

The midstream sector is where most of our products shine. When NGLs and crude oil require transportation and storage, the midstream comes into play. Not only does this include the NGL storage we provide to our clients, but it also involves the necessary pipelines and infrastructure required to push raw product to its downstream destination.

What is Downstream in the Oil and Gas Industry?

Downstream oil and gas companies are essentially the ones that supply petroleum products to consumers. Downstream production is the final phase of oil and gas production and provides customers with products like:

  • Diesel
  • Natural Gas
  • Gasoline
  • Heating Oil
  • Pesticides
  • Propane
  • Pharmaceuticals

Get Your Industry News From the Experts at Pro-Gas, LLC

Depending on the state of the market, the oil and gas industry sees many fluctuations and changes occur throughout the year. If you’re a facility or drill site manager, it’s important to stay in the know and provide your site with the most up-to-date information and equipment available. 

With Pro-Gas, LLC, you can do both from the same source. We are leaders in the industry that provide the best in site and facility equipment, as well as the most recent news from the industry. Contact us today to find out more about our services and how we can make a difference at your site. 

 

Offshore Oil Rig

Exploring Different Types of Offshore Oil Drilling Rigs

Oil drilling rigs are large structures that hold large, essential equipment for extracting crude oil from its location under the ocean. Even though oil drilling rigs have a standard purpose, the locations where petroleum is found require different types of structures to successfully pull off a vertical or horizontal drill.

Here are four of the most common types of oil drilling rigs found in the industry and why a facility would need to use them!

Compliant Towers

Offshore drilling is an aspect of our industry that continues to grow. One of the most popular choices for offshore drilling rigs is the compliant tower. This type of rig is used because it grants the ability for the site to both drill and produces oil products. It is also a flexible yet strong structure that is able to easily hold its own in water that extends to 3,000 feet of depth.

Drilling Barges

Also known as drillships, drilling barges are typically built on tankers. Although they look like commercial vessels, these tankers are mostly used during scientific drilling efforts. These drills are fit with drilling devices that help achieve deepwater oil drilling and are also large enough to host a helipad that helps transport staff and supplies to and from the offshore site. Unlike fixed platforms, drillships are mobile and are able to hop around from offshore drilling site to site as needed. 

Jackup Rigs

Another type of offshore drilling rig we use in the industry is the jackup rig. While the other rigs we’ve discussed have been focused on deep water, sometimes oil can be found in bodies of water with less than 350 feet of depth. That’s where the jackup rig comes in. 

This bottom supported structure lowers its legs to cement itself into the drill site’s floor to stabilize the rig for drilling. Although these are movable drills, they can only drill up to 350 feet into the ground.

Fixed Platform Rigs

Fixed platform rigs are a permanent and safe option for oil drilling. These rigs are usually made with steel and cement. The intent of this option is for an immobile offshore drilling rig that is able to comfortably hold crew and equipment like JT Skids and other essentials. These rigs have special directional drilling capabilities and can pull from numerous wells in the ocean within a five-mile radius.

Get the Essentials Your Offshore Rig Needs From Pro-Gas, LLC!

If your facility is in need of equipment to help smooth out the process of drilling for oil, Pro-Gas, LLC has the machinery for you! No matter the type of drilling rig or even its location, our equipment is able to be transported for efficient use by your drilling team. Get in touch with us today to learn more about our current product lines!

EPA New Source

Understanding The EPA’s New Source Review For Oil and Gas

Over the last decade, the EPA has been focused on the New Source Review and its final steps towards state implementations regarding greenhouse gas emissions and Clean Air Act permits. Although the initial actions went into effect in January 2011, the EPA has recently begun to make revisions to their New Source Review that will have a further impact on the oil and gas industry.

At Pro-Gas, LLC, we love to keep our clients informed on what’s news in our industry. Here’s a closer look at the new review rules and how these new standards will benefit the industry’s push for cleaner oil and gas production and safer facilities.

What is the Reasoning Behind the New Source Rules?

The whole goal of the New Source Review is to reduce methane found at many oil and gas drilling sites and production facilities. Through the use of industry tech, volatile organic compounds, including methane will be reduced and allow for clearer air and the preservation of our overall climate. 

This push towards greener production is not only environmentally sound but also helps save the U.S. at least $2 billion in annual lost revenue to methane leaks.

What Are the New Standards Expected of Oil and Gas?

In 2016, the EPA decided that the standards of the review needed to be raised in order to meet the regulations and expectations of the Supreme Court and D.C. Circuit decisions on the reduction of greenhouse gases. 

Two of the biggest changes the industry will see in the push for greener production are more inspections at local sites and more efficient repair requirements for production and drilling equipment.

More Inspections

Leak detection is the main cause of methane emissions at numerous oil and gas sites. The EPA has initiated a Leak Detection and Repair program to ensure that equipment inspections increase and leaks are fixed in a cost-effective manner. According to the EPA, these checks will occur quarterly at compressor stations and semi-annually for well sites.

Innovative Technology

Over the years, the technology used to detect methane has quickly advanced. The final rules on the New Source Review state that oil and gas operators now have the choice to employ these technological advancements if they can prove the tech truly reduces VOCs. With this type of technology in place, both offshore and onshore drilling sites will be able to monitor leaks on a continual basis with overall less effort.

Stay Up To Date in the Industry with Pro-Gas, LLC

The oil and gas industry is a global force that is always on the cusp of change. Get the information your site or production facility needs straight from the source of your most trusted facility equipment.

Pro-Gas, LLC is a leading provider in facility and site equipment and storage solutions. Contact us today to find out more about our current product lines.

Horizontal Directional Drilling

Top Advantages of Horizontal Directional Drilling

Horizontal directional drilling may seem like a strange move for oil and gas extraction. Since the beginning of our industry, vertical wells have been the standard, so it’s no surprise that some experts are skeptics of the method. 

Even though HDD brings a literal new direction to our industry, many facility operators and drill site managers are starting to see the advantages of using this process to farm oil!.

What is Horizontal Directional Drilling

While you may just be hearing about HDD, the practice has been around in several industries for 26 years. Horizontal directional drilling is a controversial form of drilling for oil that involves installing pipes and other drilling essentials via a trenchless method. Also known as directional boring, it’s a revolutionary method for drill sites to obtain oil with less effort and energy than other directional drilling efforts.

When drilling companies opt to use horizontal drilling in their projects, a directional drilling machine is used to drill through a select path. This practice offers several benefits to both the drill site, as well as the owners of the land where the drilling takes place.

HDD Benefits

Aside from a quicker drilling project, horizontal directional drilling provides several other benefits that make the oil farming process a smoother experience.

Continued Land Use

Onshore drilling is a controversial subject for landowners giving up their property for drilling. In most cases, this means giving up the right to use their land and roads around the drill site. However, with horizontal drilling, there is a pre-set path developed during the planning period of the project.

This path underneath the used land allows for the continuation of normal property use, as well as ensuring the buildings and roadways surrounding the project maintain their integrity as drilling takes place.

Increased Reserve Recovery

Another huge advantage of HDD is that it offers more effective drainage of the target reservoir. With vertical drilling, there is only so much oil that a site can pull before it has to dig again. HDD presents increased exposure to the reservoir and allows for more production with less land interference; which brings us to our final benefit.

Less Damage to the Natural Environment

Environmental conservation has been one of our industry’s main efforts in 2019. So it only makes sense that we should be pushing for more horizontal directional drilling as a sustainable industry effort. With horizontal paths far below the surface of a piece of land, there is little to no disturbance within the natural environment aside from the actual drilling site.  

Get Industry Updates and Reliable Facility Equipment From Pro-Gas, LLC

Horizontal directional drilling is just one of the many ways that the oil and gas industry is making changes for the future. Get the information you need about our industry straight from the source. 

At Pro-Gas, LLC, we are providers of high-quality equipment to production facilities and drill sites. From fuel genies to storage options, we have the solutions to your facility’s production needs. Get in touch with us today to learn more about our product lines.

Tariffs and Oil Prices

2019 Tariffs & Their Impact On Oil & Gas

No matter what market you examine these days, the 2019 tariffs are a hot topic. From China to Mexico, the United States government is making international waves that are threatening to crash into recent developments in oil and gas

Even though in recent years our market has thrived, if changes are imposed, many industry leaders believe that tariffs could lead to a domino effect that will quickly impede our economic progress.

Presidential Tariffs Against Mexico

U.S. relations with our neighboring nation of Mexico have been relatively strained as of late. With the push for stronger borders, everything deemed negotiable seems to be on the table. 

In June of 2019, President Trump proposed 5% tariffs on all U.S. exports to Mexico unless the country reduces the influx of citizens attempting to cross our borders illegally. 

Geopolitics is no stranger to our industry, but experts who were once confident with international tariffs now say that this particular move could be a painful blow for our industry.

What Imposing on Mexico Means for the Oil & Gas Industry

According to an article from Forbes, if our nation continues down this path, the United States will quickly hand over our position in oil and gas to OPEC and Russia, Experts say this threat is very real because if Mexico decides to retaliate against Trump’s sanctions, oil and gas prices will drastically shift. 

Currently, the U.S. imports 650,000 barrels of crude oil a day that stems from Mexico. Government data states that this alone is around 10 percent of our total crude imports. 

Mexican oil is considered to be heavy and a necessity to help create diesel fuel and standard gasoline. If the Mexican government opts to fight back against Trump’s tariffs, then we could be seeing retaliating tariffs in the 25 percentiles, which would cripple our competitive advantage at an international level. This is why the race between Biden and Trump, can have lasting effects on the oil & gas industry.

Earlier Tariffs Create a Gray Future

After seeing the impacts of tariff threats in China, it’s no shock that imposing tariffs on a neighboring ally creates the fear of substantial economic tremors. However, it may only be a short-term problem.

Initially, threats against China spooked investors and the industry saw a record drop in market data. Throughout the next few weeks, our infrastructure has shown that the U.S. is still a leading producer in crude oil at 2 million barrels per day. Will tariffs on Mexico have a negative impact on our power? Only time will tell.

Get Oil & Gas News and More From Pro-Gas, LLC!

If you are the manager of a Texas facility and need updates on the goings-on in our industry, Pro-Gas, LLC has your back! Not only are we on top of recent news, but we also provide quality equipment to facilities, drill, and pipeline construction sites. We want your next project to be a successful one! Get in touch with us to find out more about our product lines.

Infrastructure in Oil and Gas

The Importance of Infrastructure in Oil and Gas

We’ve all heard the buzz in the news about the need for improvements in the nation’s infrastructure. Better infrastructure generally means a better world for our communities, but what do these efforts have to do with the oil and gas industry?

The answer is a lot. Over the last few years, infrastructure in oil and gas has been an industry priority and has developed at a very quick pace. Here are four of the biggest reasons why there are so many new facility projects, pipelines, and related developments that are all in place thanks to a push for better infrastructure.

Infrastructure in Oil and Gas Helps Keep Facilities Up with Technology Trends

Technology trends in oil and gas have become more important than ever. Many industrial facilities now rely on digital improvements to make management an easier task. Without the efforts of technological infrastructure, our industry would have a much harder time with items like real-time performance management and other advancements that drive up our value in the economy.

Greater Delivery Possibilities

More development in general means that we have even more opportunities to create delivery outlets for the masses. The need for better roads and more buildings couldn’t have come at a better time for our facilities. Also, the impact of the infrastructure push has begun to move our industry into a more environmentally-friendly territory.

Since we’ve been pushing the “green” effort into our drilling projects and general management, a surplus of more pipelines and delivery sites will not only be great for the average consumer but will also minimize the environmental risks involved with the projects. 

More Production Means a Greater Economy

Within oil and gas, economics is always the bottom line and the deciding factor driving growth. Our success is all about the supply and demand for oil and gas products that are exported from our nation. With expanded infrastructure, we can continue to produce more oil and gas, retaining our reputation as a globally-leading energy producer.

You Focus on Infrastructure, While Pro-Gas Meets Your Facility Needs

The development of new infrastructure in oil and gas can be a taxing project for facilities to take on. In order to have your standard projects running smoothly during this time, a location needs reliable equipment that will last throughout any job. 

Pro-Gas, LLC is a Dallas-based company that provides elite equipment to facilities and drill sites, in order to improve the efforts at their location. Contact us today to find out more about our current product lines!