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I N N O V AT I O N S • V O L . V I I , N O. 2 • 2 0 1 5

19

an economic incentive for removing the liquids

from Eagle Ford production and selling them at

a premium. And innovation (read: Automation)

can be used to get more liquids out easier and

faster. Which is particularly important in light

of two projections: The Energy Policy Research

Foundation’s forecast that by 2017, 19 percent of

all NGLs produced in the United States will come

from the Eagle Ford, and Citigroup’s prediction

that exports of light and ultralight crude from the

United States could reach 1 million barrels a day

by the end of 2015.

Mexico, for one, would like to get its hands on

some of that – a tenth of the total, to be exact.

Following the BIS decision to allow the export

of ultralight oil, Petroleos Mexicanos (PEMEX)

petitioned the U.S. Commerce Department to

import 100,000 barrels

of light crude per day. If

approved, it would allow

Mexico to increase gasoline

production and improve

refining. In exchange,

PEMEX would send its heavy oil to refineries on

the United States Gulf Coast that are configured

for processing it.

Automation is Part

of the Profit Equation

In a low price environment, pushing more product

is a sensible option. But it’s not the only one.

Reducing costs and eliminating inefficiencies are

equally valid choices.

The removal of wet gas liquids fulfills all of

those goals. In addition to providing marketable

products, it aids in pipeline maintenance. Liquids

in the line reduce the optimum flow of natural

gas and drastically increase fuel and power

consumption. Capturing them avoids those issues.

“One of the major line items in the operation

C O V E R S T O R Y

400

2014

2013

2012

2011

2010

2009

300

200

100

6

12

18

24

30

36

42

2009

2010

2011

2012

2013

-70%

-68%

-68%

-64%

-69%

-30%

-39%

-47%

-48%

-20%

-28%

-27%

-20%

-42%

Average Oil Production Per Well

During the First 48 Months of Operation

Year-Over-Year Decline in Production in Wells Drilled

in the Eagle Ford Region from 2009-2013

MONTHS OF OPERATION

BBL/D

First Full Month

of Production

YEAR 1

YEAR 2

YEAR 3

YEAR 4

Increased Initial Production from

~ 25 bbl/d in 2009

to

~ 375 bbl/d in 2014

Source: Energy InformationAdministration

CONTINUED ON PAGE 27