8 th Annual. Rockies Oil & Gas. Bakken, Niobrara, Uinta, and Emerging Plays -- Production, Markets, Economics, and Infrastructure

Transcription

1 8 th Annual Rockies Oil & Gas Bakken, Niobrara, Uinta, and Emerging Plays -- Production, Markets, Economics, and Infrastructure April 14-15, 2014 * Four Seasons Hotel Denver * Denver, Colorado Day One Monday, April 14, :15 Conference Registration and Networking Breakfast 8:15 Chair's Welcome and Opening Remarks Terrel F. LaRoche, Chief Executive Officer, Rio Midstream Partners, LLC Regulatory, Political, and M&A Environment 8:30 Colorado s O&G Regulations and Perspective on Successful Collaboration Strategies for successful collaboration between the state, local governments, and operators Feedback on Colorado s setback and water sampling regulations Where does Colorado stand on emissions compared to other states? A regulators view of industry and community outreach Matt Lepore, Director, Colorado Oil & Gas Conservation Commission [Panel Discussion and Case Studies] 9:00 Mergers and Acquisitions Impact of Changing Ownership on the Upstream and Midstream New oil and gas supply developments in the Bakken and Niobrara shale plays have triggered a significant increase in mergers and acquisitions, as companies position for long term growth. Producers looking to increase portfolio NGL and crude production have been particularly acquisitive in recent years around core acreage. Midstream companies are similarly acquiring footholds in these shale plays to participate in the substantial build-out of pipeline, processing plants, trucking and rail terminals needed to move new production to market. Significant recent upstream and midstream acquisitions activity Trend toward proved properties spending and focus on core assets by producers o current drilling trends by core and non-core producers

2 o producer drilling economics (rate of return) at current and future prices Current and future outlook for NGL production from this region Need for midstream infrastructure to drive producer development o current capacity for expected crude oil, natural gas, and natural gas liquids production o new regional midstream infrastructure projects and takeaway capacity Crestwood-Inergy merger; acquisitions in the Bakken and PRB Niobrara shale plays o Arrow Midstream o Jackalope Gas Gathering o Douglas Crude Rail Terminal Caerus acquisition of PDC Piceance gas assets o reasoning behind the acquisition o how exploiters look at assets o how targeted, negotiated transactions are seller-friendly o seller strategy for packaging difficult assets with good assets o how a single surface use agreement provision almost killed the sale o approach to the post-close exploitation phase Moderator: Douglas S. Bland, Partner, Vinson & Elkins LLP David H. Keyte, Chairman and Chief Executive Officer, Caerus Oil and Gas LLC Robert G. Phillips, Chairman, President & CEO, Crestwood Midstream Partners LP 10:30 Networking & Refreshment Break Hosted by Vinson & Elkins LLP Production Activity Crude, NGLs, and Gas [Panel Discussion] 11:00 Production Rates, Growth Outlook, and New Discoveries Bakken and Niobrara -- Production rates and growth outlook o just how big could the Bakken reserves ultimately be? o down-spacing increased production with decreased footprint o increased efficiencies Uinta Basin Driving growth through efficient horizontal development Powder River Oil discoveries and production Gallup -- Major oil discovery in the San Juan Basin o significant oil accumulation along the southern margin of the basin o previously unrecognized, tight sandstone reservoir with a unique trapping geometry -- and not a shale o being developed with horizontal wellbores and multi-stage hydraulic fracture technology o highly economic at today s oil prices; will contribute to a revitalization of activity levels within the San Juan Basin

3 o existing oil and gas infrastructure, with minor modifications, should accommodate rising production So much production What is the price point where it s no longer profitable? Regional play life cycles Quick depletion? When will plays peak? Daryll Howard, Vice President, Newfield Rocky Mountains, Newfield Exploration Co. Mark Williams, Senior Vice President, Exploration and Development, Whiting Petroleum Corp Steven G. Natali, Senior Vice President, Exploration, WPX Energy Inc. 12:30 Networking Luncheon Hosted by Meritage Midstream LLC Crude Markets, Economics, and Infrastructure 1:45 U.S. Onshore Supply Growth -- Implications for Oil Pricing U.S. production growth A look at onshore crude oil differentials Who benefits? Pipes, refiners, consumers Who loses? Producers NGLs and condensate also impacted David A. Pursell, Managing Director and Head of Securities, Tudor Pickering Holt & Co. 2:15 Emerging Hubs and Spot Markets Emerging markets for Bakken in the Williston Basin and Canadian heavy on the US Gulf Coast What does that mean for Rockies producers/consumers? Potential for these two markets to emerge as very liquid hubs and potential reference prices for the Americas Opportunities for emerging spot markets for Niobrara and Utah waxy crudes how do they fit into the overall domestic US crude market? Suzanne Evans, Senior Manager, Projects & Initiatives, Price Group, Platts 2:45 Networking & Refreshment Break Hosted by Vinson & Elkins LLP [Panel Discussion and Case Study] 3:15 Crude Infrastructure Production vs. Takeaway Capacity Crude oil production expectations for the Williston Basin Moving crude oil within the Williston Basin Moving crude oil out the Williston Basin by pipeline and rail Rail vs. pipeline takeaway o how much crude is being shipped by rail? o what is the window for crude by rail 1-3 years? Connecting the Rockies to Cushing

4 o PXP Pony Express Pipeline System -- conversion from natural gas to crude oil service o current construction activities o anticipated in-service timing o mainline system from Guernsey Wyoming to Cushing, Oklahoma o supply lateral into northeastern Colorado Justin J. Kringstad, Director, North Dakota Pipeline Authority John Eagleton, Vice President, Business Development & Commercial, Tallgrass Energy Partners, LP Allan Roach, Senior Vice President, Business Development, Watco Companies 4:30 Coordinating Bakken Gathering, Water, and Vapor Gas Requirements Producers need midstream partners who bring more to the table than traditional midstream offerings. In the Williston Basin, water accounts for more than 30 percent of the total molecules transported. The question is: Who is building this critical infrastructure? Additionally, the industry typically only addresses associated gas flaring but who is addressing vapor gas flaring off storage tanks? Examine the hidden costs of trucking versus working with a midstream provider to put in place a gathering system which covers multiple service lines Delve into the lost value of vapor gas that flares off storage tanks on a producer s well pad especially in the Bakken, where producers will find very high btu gas Evaluate the scope and scale of the water infrastructure required in the Williston Basin both produced water and freshwater delivered for frac Observe how a midstream partner can assist with simultaneous operations on a well pad and provide for safer, more cost effective infrastructure solutions Determine how a Bakken and Three Forks producer can reduce its differential, lease operating expenses and completions costs with one-stop shopping David Scobel, Chief Operating Officer, Caliber Midstream, L.P. 5:00 Refineries Current Capacity and New Development Activity Regional refinery requirements and development activity o PADD 4 producing more crude than can handle in the PADD o quality varies ultra light to waxy o diesel short Regional development activity o North Dakota plants will satisfy growing demand for diesel to run generators, fracking, and trucks o Salt Lake Tesoro and Frontier to handle waxy crude o Calumet, Great Falls Tripling size to 30,000 East Coast Originally designed for lighter crudes; being brought back from mothballs to take Bakken quality crude Gulf Coast, West Coast -- Heavier crudes; will they redo refineries to take lighter crudes?

5 John R. Auers, Executive Vice President, Turner Mason & Company 5:30-6:30 Networking Cocktail Reception Hosted by Crestwood Day Two -- Tuesday, April 15, :00 Networking Breakfast 8:45 Chair's Review of Day One Terrel F. LaRoche, Chief Executive Officer, Rio Midstream Partners, LLC Gas and NGLs Markets, Economics, and Infrastructure 9:00 Markets and Economics Prospects for Rockies Gas Where is Rockies gas going to go? Displacement in the Northeast, Midcon, etc. Where is demand growing? Outlook for regional gas use Growth of exports to Mexico o plans for pipeline interconnects; timeline of pipeline builds o are there enough pipelines in Mexico to get the gas to the end user? LNG exports Impact on Rockies LNG technology Use in drilling, trucking, compression Jeff W. Welch, Senior Vice President/Head of North America Gas and Power Development, EdF Trading North America, LLC 9:30 Outlook for Natural Gas in the Regional Generation Mix What is the impact on and opportunity for natural gas in the electric generation mix in the Rocky Mountain region? How will renewable energy and environmental regulations impact the use of natural gas as a fuel for electric generation? Can natural gas compete with other forms of renewable energy in the electric generation market? What is the outlook for power generation in the Rockies How will wind, solar, and Demand Side Management impact the future energy mix? How competitive is renewable energy, with and without subsidies? Coal plant retirements and the opportunity for natural gas A brief overview of Xcel Energy s Clean Air Clean Jobs Act implementation plan and the impact on natural gas needs What s next in the electric generation market? Kurtis J. Haeger, Managing Director, Resource Planning, Xcel Energy Services Inc. 10:00 Networking & Refreshment Break Hosted by Vinson & Elkins LLP

6 10:30 NGL Markets and Economics What are the market options for Rockies NGLs? -- Regional, national, international NGLs headed toward the Gulf -- Competition from other regions/basins Pricing implications Jennifer Van Dinter, NGLs Analyst, Bentek Energy 11:00 Gas Infrastructure Requirements, Projects Development, and Changing Flows Overview and impact of current expansion projects Production explosion in the Northeast What did we learn in November 2013 and what s the impact to Rockies producers? What about the Rockies -- Where is gathering and long-haul capacity needed? o Bakken need for midstream and gas infrastructure Flow patterns -- Effect on supply, demand, and regional prices o new construction and conversions o backhaul service and reversals Jack Weixel, Director, Energy Analysis, Bentek Energy [Case Study] 11:30 NGLs Infrastructure Requirements and Development Plans Fractionation Needs in the various plays and development plans Impacts of new NGL pipelines and processing plants on Niobrara production growth Processing, fractionation and NGL transportation needs in the PRB How do they impact growth? Meritage s PRB midstream development and NGL pipeline development plans C. Cole Stanley, Vice President, Crude Oil and NGL Services, Meritage Midstream, LLC 12:00 Close of Conference SPONSORED BY: