Category Archives: Locally Sourced Oil

Oil and Gas Auctions Kick Off With a Rocky Start

Oil and Gas Auctions Kick Off With a Rocky Start

Earlier this year, we reported that the Biden Administration planned to go back on its original ban on leasing federal land for oil and gas drilling.

While our industry was thrilled at the prospect of locally sourced resources and the potential for decreased prices at the pump. Later actions from the administration displayed back-and-forth dedication to its initial promise with the result being a rocky start to initial auctions on Wednesday, June 29, 2022.

Let’s take a look at what’s going wrong with the process, why, and what other issues could be preventing the Biden Administration from building back better in one of the nation’s most essential industries.

Administration Tests for Demand Aren’t Looking Great

Wednesday served as the big kick-off for the Biden administration’s auction for oil and gas land in eight states.

Unfortunately, the welcome from the oil and gas industry wasn’t as warm as the administration would have liked.

According to an article from Reuters, the sales that will go through Thursday, June 30th, was a test for the industry’s demand for federal acreage and domestic output.

While most would expect initial bids to be high and competitive, this wasn’t the case on the first day of the auction.

Why Would the Oil and Gas Industry Reject Potential Opportunities?

The first day of auctions had 120,000 acres of land in Wyoming on the table, and more than a third of the parcels received zero bids from industry leaders.

Although locally sourced oil and gas has the potential to reduce consumer gas prices, industry groups say that there are numerous reasons behind the rejection of offered land.

The main two issues are:

  1. The higher royalties that the administration would place on production; essentially forced gas prices to remain at high levels
  2. The administration’s rigorous attempts to halt new leasing amidst a current crisis that stems from sanctions after Russia’s invasion of Ukraine

Biden Administration Opens the Door to Environmental Lawsuits

The President’s big bids don’t just have members of our industry upset but have also attracted two lawsuits from national environmentalists. According to an article from The Hill, a coalition of environmental groups sued President Biden and the Biden Administration on Wednesday when it approved the federal leases it granted our industry.

Despite oil and gas’s efforts to drill and produce with greener efforts, the plaintiffs of the lawsuit claim that the sales will result in billions of dollars in harm to air, local wildlife, people’s health, and water sources.

Stay Up-to-Date With the Lates Oil and Gas News From Pro-Gas, LLC

Whether you are an oil and gas aficionado or manage a local facility, Pro-Gas, LLC is proud to be your honest source of oil and gas news. Not only do we keep our customers informed but we also practice what we preach and give the facilities we serve the tools and services they need for success.

From new fuel conditioners to assisting with facility management, Pro-Gas, LLC has your back during these trying times!

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Different Types of Oil and Gas Facilities

A Look at Different Types of Oil and Gas Facilities

When most consumers think of oil and gas, they think of the immediate availability that our industry efforts bring to the masses.

While it can seem like oil and gas delivery is a simple process, the truth is that before essential products make their way into consumers’ homes, several oil and gas facilities put in a lot of hard work to ensure product availability.

Here’s a look at some of the most important facilities in our industry and how they push production forward for oil and gas products.

Well Sites

Crude oil and natural gas well sites are where the production process starts! At these sites, workers drill oil and produce natural gas.

Although there are usually several well sites within the same vicinity, the entire lot of the sites owned by one company is known as the facility.

Central Tank Batteries

Once mined oil is sent down the pipeline from well sites, the product makes its way to central tank battery facilities.

These sites are where crude oil is received, measured, and tested before it makes its way through the rest of the pipeline system. Here, oil and gas are stored in tanks until they are ready for transportation to another site or sent down the pipeline.

Oil Refineries & Tank Farms

As we’ve mentioned before, crude oil is only the starting material for the petroleum and gas products consumers use on a daily basis. Oil refineries break crude oil down into its separate components and treat it to become ready for consumer use.

Once refineries treat oil, the different blends of petroleum products are temporarily stored on a tank farm, another facility that can hold more than 300,000 barrels of oil at any time. Once the oil is stored on a tank farm it is planned for final distribution to consumers or other storage facilities.

Natural Gas Plants

Natural gas plants welcome the gas stream from pipelines and extract natural gas liquids via a cryogenic process. These facilities are to natural gas as oil refineries are to crude oil. They essentially take raw resources and extract, compress, and sweeten natural gas before it is passed to consumers through the pipeline.

What Do All Oil and Gas Facilities Have in Common?

While each oil and gas facility may have its own purpose in the production process, the one thing they all have in common is the need for quality equipment that keeps manufacturing reliable.

Some of the most important equipment like NGL storage tanks, gas conditioners, and gas treatment packages help bring consumers the industry products that keep their world in motion.

At Pro-Gas, LLC, we specialize in providing the best facility equipment to our clients that maximize productivity and encourage safe practices throughout any site.

Secure the Best Industry Equipment for Your Facility Today, With Pro-Gas, LLC

If you manage an oil and gas facility or drill site and are ready to add the best industry equipment to your organization, let the nation’s most trusted suppliers help! At Pro-Gas, LLC, we push the industry forward with our products and services.

Contact us today to learn more about our current availability and how we can bring our best to your facility.

 

Biden Reopens Federal Land for Oil and Gas Drilling

Biden Administration Reopens Federal Land for Oil Drilling

No matter who you are, it’s inevitable that you or someone you know has experienced financial dread when filling up your vehicle at the pump. On Friday, April, 15, the Biden administration began the first major steps toward a long-term solution that they hope will curb oil costs and make it widely more affordable.

The latest move to reopen federal land to oil and gas drilling contracts is a massive turnaround after the President suspended new leasing projects around his first week in office.

Let’s take a look at why the administration made this new decision, the details of new drilling leases, and if there are any downsides to reopening some public land for oil and gas mining.

Why Has President Biden Changed His Mind On Drilling?

Originally, President Biden halted federal drilling contracts with a greener mindset for the future of the oil and gas industry. However, as the demand for oil rose, combined with sanctions placed on Russia after the nation attacked neighboring Ukraine, gas prices eventually began to spiral out of control.

Some states like California witnessed gas prices higher than 5 dollars per gallon.

Former Promises May Not Be Enough

Last month, the President vowed to dig into the nation’s oil storage reserves and release 1 million barrels per day to ease the financial burden the average person faces at the pump.

However, national reserves are limited resources that will eventually have to be replenished. So, the President has opted to open a limited amount of federal land for future oil and gas drilling sites.

What Are the Leasing Details?

The leases in the discussion are for 225 square miles of federal land across 9 states. Although these new leases are a step forward, they are still 80 percent less than what the industry proposed as a solution to increased oil and gas prices.

Starting in June, auctions for federal land are opening up to oil and gas companies within the following states:

  • Wyoming
  • Utah
  • Colorado
  • Montana
  • New Mexico
  • Alabama
  • Nevada
  • Oklahoma
  • North Dakota

Are There Any Potential Pitfalls to New Drilling Opportunities?

Although more drilling could definitely be a way to reduce crude oil prices and put the US back in its position as a crude oil producer, some believe that the addition of drilling opportunities could cost billions of dollars worth of climate damage.

Even some oil and gas companies are hesitant as the new leases come with higher royalty rates than the nation has seen in nearly a century. The new rates will increase from 12.5% to 18.75%.

While there are definitely concerns about the decision from either side of the political aisle, one thing is clear, new leases could see our nation producing ample oil into 2030, and that could be a great start towards recovering from the current state of our industry’s prices.

Prepare Your Future Drilling Projects WIth the Help of Pro-Gas, LLC

If you manage an oil and gas company, then you most likely already have plans to bid on new drilling projects for your team. Whether your team needs a reliable gas conditioning system or a total compressed natural gas package, Pro-Gas, LLC has some of the most quality equipment in the industry available to our nationwide clients.

Contact us today to learn more about our product availability.

How Current Events Influence Oil & Gas Prices

How Are Current Events Impacting Oil and Gas Prices?

While Pro-Gas, LLC isn’t in the business of interfering with global politics, there has been recent geopolitical power plays that we know could have a significant impact on the oil and gas prices at international and domestic levels.

While prices have already gone through a rollercoaster ride over the last couple of years, current events between Russia and Ukraine put the industry on course for further market turbulence.

Let’s take a look at how often geopolitical events impact our industry, what the latest actions mean for our oil and gas supply, and why we think the United States could mitigate a cost crunch in the coming months.

Geopolitical Situations Commonly Affect Oil and Gas

Keep in mind that the biggest influencer of oil and gas prices is supply and demand. Therefore, when geopolitical situations arise and sanctions begin to cut off supplies to certain parts of the world, supply and demand can drastically fluctuate.

Unfortunately, geopolitical tensions are common throughout the world and their impact can eventually lead to increased prices at the local gas pump.

What the Russia, Ukraine Incident Means for Global Prices

Just this week, tensions between Russia and Ukraine came to a head and some of the first shots of the latest geopolitical incident were fired.

Since the world has been buzzing about these rising tensions throughout the month of February, oil prices and the costs of other precious imports have begun to increase.

After the first round of attacks during the Russia, Ukraine conflict, oil prices have already risen to $105 dollars per barrel. Not only do these increased prices create a natural rise in energy costs, but nations like those in the UK that heavily rely on Russian oil could experience a severe supply crisis if drastic sanctions are put in place.

Will Russia’s Actions Influence Prices in the United States?

Although Russia accounts for 1 in 10 barrels of oil distributed around the world, the United States is still a massive global player in the oil and gas industry.

According to industry reports, in 2020, Russian oil only accounted for 7 percent of the United State’s consumption.

In fact, much of our oil comes from domestic sources and our neighbors to the North, Canada. So, while the potential increase of $105 per barrel may seem like a looming figure, the cost crunch could really only sting a bit, rather than cripple our access to oil for general consumption.

Keep Your Production Facility Up-to-Date With Pro-Gas, LLC

If you are the manager of an oil and gas production facility, you want to be up-to-date on the latest news as well as the latest equipment in the industry.

Pro-Gas, LLC is dedicated to providing both to our customers and guarantees the best possible rates on essential equipment like fuel conditioners and mobile storage units.

Reach out to us today to learn more about our current product availability and how our quality equipment can help your production facility improve domestic production during tense times.

Where the US Gets Its Oil and Gas | Natural Gas Production

Where Does The United States Get Its Oil From?

While names like OPEC are regularly thrown around in the media and worries about gas prices due to international embargoes, it’s no surprise that most people naturally believe that a healthy amount of our nation’s oil is imported from the Middle East.

Yes, a percentage of our nation’s oil does come from Africa and the Persian Gulf, but we think most Americans would be surprised at how self-sufficient our nation is with its oil needs.

Let’s take a closer look at who our main importing partners are and how much oil we produce and use for ourselves in the United States.

The Decline of Two Faithful Imports Leads to an Unlikely Import Partner

As we mentioned earlier, the United States still does rely on some foreign entities when it comes to importing the oil we use. However, over the last couple of years, imports have hit the lowest numbers since before 2020.

To be specific, according to the U.S. Energy Information Administration, in 2020, the United States only imported roughly 11% of its total petroleum from OPEC and 10% from the Persian Gulf.

However, this decline in traditional oil shares was mirrored by a massive increase in Canadian oil, which was 52% of our total petroleum imports.

There’s Still No Place Like Home…

Since 2018, the United States has poised itself to be one of the largest crude oil producers in the world. With roughly 11 million barrels of crude oil produced per day, it’s no surprise that we are the top crude oil producer in the world, providing 15% of the world’s crude oil in 2020.

The United States produces crude oil in 32 states and surrounding waters. However, most of the nation’s production came from 5 states on their own:

  • Texas – 43%
  • North Dakota – 10.4%
  • New Mexico – 9.2%
  • Oklahoma – 4.1%
  • Colorado – 4%

When examining the mass amounts of crude oil we produce alone and our partnership with Canada, a nation that is both stable and willing to provide large quantities of oil to our country, it’s no surprise that imports from countries farther away from the states have drastically reduced over the years.

How Much Do We Benefit From Locally Sourced Crude Oil?

Locally sourced oil isn’t just something that the United States exports to foreign nations for a profit. As we’ve mentioned in former posts, locally sourced oil has massive benefits on our society as a whole:

  • The crude oil industry creates millions of jobs for the United State’s workforce
  • Domestic oil drastically lowers the annual trade deficit
  • Lower energy costs
  • Greater economic growth

Continue Being The Pride of the Industry With Pro-Gas, LLC

If knowing that the United States is one of the biggest oil producers in the world makes working in the oil industry a point of pride, Pro-Gas is right there with you to celebrate.

We are proud to be one of the nation’s leading suppliers of oil and gas equipment that ranges from fuel conditioners to mobile storage tanks.

Make your oil and gas production facility the best today, with Pro-Gas, LLC. Contact us to learn more about our current product availability.