Well Power ‘s
partnership with Micro-Refinery Unit (MRU) license holder MEC Resources puts
the company exclusively in charge of distributing the technology in Texas. This
incredibly flexible and customizable MRU system is a unique configuration of
proven commercial technologies with a proprietary reactor at the core. The MRU
can handle up to 250 Mcf flows of otherwise flared gas, converting it to CO and
hydrogen, then condensing that Syngas to Green Fuels™ (diesel, diluents,
synthetic crude) or turning it into electricity.
Instead of burning
up money, operators can produce viable fuel or even energy on-site with Well
Power’s MRUs, a platform which simultaneously slashes carbon emissions.
Reducing carbon pollution will become increasingly important as the hammer of
the EPA’s new Clean Power Plan regulations comes crashing down by mid-2016,
forcing states to impose enforceable carbon pollution targets per megawatt hour
of electricity produced on power companies. These regulations will likely send
energy prices up across the board, making highly localized solutions like the
MRU particularly attractive to oil wells that are under increased scrutiny.
Compelling market dynamics when one considers that flaring in the U.S. was up
223% percent from just 2007 to 2011 alone according to World Bank statistics,
topping out around 251 Bcf, firmly in-line with more recent EIA data.
Railroad Commission
of Texas Commissioner, Christi Craddick, issued heads-up letters in early
February of this year to operators in the state that the Commission would
enforce existing state flaring rules. Rule 32 flaring regulations allow burning
off excess natural gas at no charge during and up till 10 days after drilling,
with a permit of only 180 days potentially acquirable thereafter. The Railroad
Commission’s own figures indicate a 462% rise in the number of permits issued
in 2013 when compared to just two years prior, an obvious barometer of the
considerable drilling activity which has transpired thus far and a further
indicator of how the flare gas game is going to play out in Texas.
This was a clear warning
to Texas’ burgeoning oil sector and it sent shockwaves through the Eagle Ford
Shale community, where oil production has skyrocketed in the last half decade
to over 670k BOPD last year alone. A recent projection by energy consulting
agency Wood Mackenzie sees another massive jump on the horizon as well and the
agency is targeting a figure of 2M BOPD by 2020 from the Eagle Ford, which
incidentally managed to beat the Bakken to the 1M BOPD goalpost only eight
months ago.
The Railroad
Commission is tipping its hand here to sector operators that the time has come
to double down on precisely the sort of green fuel MRU processing technology
WPWR has exclusive license to in Texas. Moreover, because the MRU systems are
skid-mounted mobile platforms that are also scalable, they represent a modular
way for even remote wells to turn otherwise wasted (soon increasingly costly)
flared gas into energy that can even be used to replace expensive diesel-driven
fracking machinery.
Early last month
Well Power indicated that they are also moving to expand their license with MEC
and address the same flaring problems Texas has, in states like North Dakota
and Wyoming. In North Dakota, where fracking has also caused a boom, nearly 30%
of the gas is being burned off due to lack of infrastructure development having
kept up with output capability. This makes another extremely ripe target for
WPWR and investors should note that North Dakota is already eyeballing the roll
out of a tax royalty to operators who implement green solutions to flaring.
For more
information, visit www.wellpowerinc.com
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