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Archive for April, 2015

I count on Emilio Estevez to appropriately deliver the weight of all bad news:

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Colin McKay Miller is the VP of Marketing for the SpiroFlo Holdings group of companies:

SpiroFlo for residential hot water savings (delivered 35% faster with up to a 5% volume savings on every hot water outlet in the home), industrial water purification (biofilm removal), and reduced water pumping costs.

Vortex Tools for extending the life of oil and gas wells (recovering up to 10 times more NGLs, reducing flowback startup times, replacing VRUs, eliminating paraffin and freezing in winter, etc.).

Ecotech for cost-effective non-thermal drying (for coal, biosolids, sugar beets, dairy waste, etc.) and safe movement of materials (including potash and soda ash).

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Vortex Tools covers the ongoing scaling back of the oil and gas industry in 2015—specifically: layoffs in Colorado.

I can describe the current American oil and gas experience in four words: Layoffs and low prices.

Whether it’s big companies or small companies, the story is the same: 2015 budgets were delayed then drastically reduced. From there, oil and gas companies have hemorrhaged employees (yet production continues to climb).

With being headquartered in Colorado, we’ve kept tabs on what’s happening around us. Over the last six months:

  •  Noble Energy planned to cut 220 jobs or 10% of its workforce, 80 from Colorado (and Noble is one of the main companies in the state).
  • WPX Energy cut 8% of its nationwide workforce, scaling its Denver office back from 156 people to 15 (25 Denver-based jobs were eliminated—120 were offered to relocate to Tulsa, OK).
  • Bayou Well Services decided to permanently lay off 250 Colorado employees.
  • Sabine Oil and Gas Corp. laid off 102 Denver-based employees starting in December 2014.
  • Linn Energy will shut its Denver office, cutting 52 jobs.

(Despite this, we’ve still sold Vortex DX-I tools into the Wattenberg basin [in northeastern Colorado] to increase oil recovery efficiency in horizontal applications when combined with gas lift.)

Field install of the DX-I Vortex tool

Field install of the DX-I Vortex tool

Some of this is scaling back the bloat that occurred with high oil prices, but some of it has to do with the downside of how many American companies conduct business. I can’t remember where I ran across this study, but it noted how different parts of the world formulate their business plans. Great Britain works off a five-year plan; Germany, a 10-year plan; and Japan, 15 years. The United States? Companies usually plan around whatever will increase stock prices this quarter.

You might think that 5-15 years is too long of a planning period, but planning around what can bump numbers within a 90-day period is woefully shortsighted and often hamstrings future development. However, with oil and gas, when it hurts financially, it hurts big, and when recovery comes, companies can often buy their way to solutions then. For 2015, however, even if it’s a great market to pursue oil and gas efficiency—squeezing every bit of value from the well—it’s going to be a year of engineers trying not to get fired.

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Colin McKay Miller is the VP of Marketing for the SpiroFlo Holdings group of companies:

SpiroFlo for residential hot water savings (delivered 35% faster with up to a 5% volume savings on every hot water outlet in the home), industrial water purification (biofilm removal), and reduced water pumping costs.

Vortex Tools for extending the life of oil and gas wells (recovering up to 10 times more NGLs, reducing flowback startup times, replacing VRUs, eliminating paraffin and freezing in winter, etc.).

Ecotech for cost-effective non-thermal drying (for coal, biosolids, sugar beets, dairy waste, etc.) and safe movement of materials (including potash and soda ash).

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SpiroFlo reports on California’s recent commentary regarding the state’s water shortage.

Admittedly, when I see people legitimately sharing serious information on April Fools’ Day I get squinting real good, but this commentary from Californian water officials popped up before that marker:

On March 13th, senior water scientist at NASA’s Jet Propulsion Laboratory, Jay Famiglietti, wrote an article for the LA Times where he hypothesized that California’s state reservoirs only have one year of water remaining.

Not surprisingly, your Average Joe took this to mean that California will run out of water in a year, but Famiglietti denied that he made that statement. He clarified that A) reservoirs are not the only source of water to the state (there’s still groundwater); and B) reservoirs are designed to only hold a few years’ worth of water anyway.

The big problem is that the title of Famiglietti’s op-ed was “California has about one year of water stored. Will you ration now?” It didn’t matter that the content had a different tone. The article was titled as clickbait and it spread rapidly. However, maybe it’s the effect of The Onion in our modern media consumption, but people took in punchline of the title, not the full story of the text.

Thus came a wave of defenses from California state officials, letting people know that California will not run out of water in 2016. I’m sure some took this to mean that there’s no drought issue whatsoever (but that joke still sucks the other 364 days of the year).

While I can appreciate that some of this has to do with the sad truth that the speed of media travels faster than the speed of truth these days (get your article out before anyone else, fact checking be damned), there are some unfortunate truths that haven’t got the clickbait titles they deserve:

California is now in its fourth year of drought. This has led to overpumping of groundwater reserves (now a decade strong) and it’s getting costlier to get the water out the deeper they have to go.

CA groundwater

In addition:

The Department of Water Resources did not have a readily available estimate of the total water supply in California or the amount expected to be used over the next year.

Just because California is not exhausting its water supply “doesn’t mean we’re not in a crisis,” said Leon Szeptycki, executive director of the Water in the West program at Stanford University, who called the state’s snowpack, at 12% of average, “both bad for this year but also a troubling sign for the future.”

Then there’s that whole bit of growing the nation’s food supply in the desert…

While some believe that people will police their own water use (unlikely) and that the government will step in before the point of water getting shut off in homes (hopefully), no matter the headline, it’s an ugly road ahead. No matter where you look, there’s a critical water shortage looming. California is just highlighting the issue.

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Colin McKay Miller is the VP of Marketing for the SpiroFlo Holdings group of companies:

SpiroFlo for residential hot water savings (delivered 35% faster with up to a 5% volume savings on every hot water outlet in the home), industrial water purification (biofilm removal), and reduced water pumping costs.

Vortex Tools for extending the life of oil and gas wells (recovering up to 10 times more NGLs, reducing flowback startup times, replacing VRUs, eliminating paraffin and freezing in winter, etc.).

Ecotech for cost-effective non-thermal drying (for coal, biosolids, sugar beets, dairy waste, etc.) and safe movement of materials (including potash and soda ash).

Read Full Post »