COMPRESSED FACTS
VR Systems, Inc.
Headquarters: 2408 Mercury Ave., Odessa, TX, 79763 (800)478-0011
Sales Office: 13310 Leopard St., Ste.6, Corpus Christi, TX 78410 (361)241-5348
AUG/SEPT 2000
Published 07/31/01
For Print Copy (MSWord 97)Click Here
VR Systems: Corrosive Gas Specialists
Natural gas storage levels surpass recent consumption
Indonesia Predicts Big Rise in Domestic Gas Demand
Short Term Energy Outlook, Highlights
Since When Is a High Oil Price a Bad Thing?
Keeping Track of Henry Hub or WTI? Back to Top
If you are interested in staying up-to-date on the Henry Hub and West Texas Intermediate closing prices, bookmark http://www.gascompressor.com. There you'll find prior day's closing prices for the Henry Hub and WTI. You may also click on Energy Indices link (rt. or lft. side) to see a graph of past month's prices.
VR Systems: Corrosive Gas Specialists Back to Top
VR Systems has developed the experience and know-how, over the years, to handle
applications with high concentrations of H2S or CO2.
For acid gas projects the associated hydrogen sulfide must be handled differently than
the gas in a standard compression package, similarly with water saturated methane and CO2
gas in landfill applications. For both acid gas and landfill gas projects, VR Systems
designs the piping material and internal equipment to be corrosion resistant. For example,
the cooler must have stainless steel headers and tubes. VR Systems also fabricates
stainless steel on all process piping and valves for corrosive applications. Just as with
any application, VR Systems models each stage of compression through HYSYS, ensuring
accuracy in temperature changes, heat loads and flow rates for customers' specific needs.
Customers with specialty project applications rely on VR Systems because of its'
ability to offer a turnkey system, i.e. the ability to compress the gas and to dry the
gas. VR Systems offers refrigeration systems that remove H2O from the gas
stream and make it suitable for a sales line or fuel gas boosting. Customers rely on the
fact that VR Systems models every project for the custom design of a system that meets
customer/application specifications.
While VR Systems strives for the most economical price, cost can be an issue but the
key is to ensure that the equipment will not deteriorate under corrosive conditions. In
most cases a customers' need for a system designed upon inception to meet the demands of a
corrosive application will outweigh any cost issue.
For information about Acid Gas compressors:
http://www.gascompressor.com/acidgas.htm
For information about Landfill Gas compressors:
http://www.gascompressor.com/landfillgas.htm
For questions regarding your application or to
receive a budget or firm quote on your specific application, call VR Systems at
(800)478-0011 or (361)241-5348.
Natural Gas Storage Levels Surpass Recent Consumption, AGA Report Back to Top Source: Oil & Gas Journal Current US storage levels for natural gas indicate that gas utilities are well prepared again to meet their customers' needs this winter, the American Gas Association (AGA) reported Wednesday, October 11th.
The 2.48 tcf of gas already held in underground storage nationwide has surpassed the amount withdrawn from storage during each of the last five winters, AGA officials said.
Chris McGill, AGA director of gas supply and transportation, said there is more than a month of the traditional storage refill season left. Storage injections have continued all the way into December as recently as 1998, he said.
In US states east of the Mississippi River, the region with the highest winter demand for natural gas, the amount of gas in storage has already reached 1.49 tcf, or the 82%-full mark.
"Storage levels in the consuming region east are closely watched, because for many companies as much as 50% of peak-day supply may be pulled from storage," McGill said. "So far, working gas injections appear to be very strong, lagging only about 7% behind the five-year average for the region," McGill said. The consuming region east includes all states east of the Mississippi River, as well as Iowa, Nebraska and Missouri, but excluding Alabama and Mississippi.
In contrast, the producing region has entered the winter heating season with volumes as low as 760 bcf or as high as 923 bcf, reflecting the diverse influences that affect decisions on whether to store or flow gas from the region, McGill noted. At the end of September, more than 600 bcf was already in storage in the producing region.
Past AGA studies have shown that, on average, 20% of gas consumed during a 5-month winter season comes from underground storage. The remainder of the gas consumed during an average winter, about 65%, comes from domestic production, while 13% comes from imports, mostly from Canada, and supplemental supplies such as liquefied natural gas.
Since January 1994, the AGA has reported the weekly drawdown and refill of working gas in underground storage in the United States. The report reflects trends in storage utilization and captures key changes in storage volumes from week to week and year to year. Back to Top
Indonesia Predicts Big Rise in Domestic Gas Demand Back to TopSource: Compressor Tech Two Business Wire- Already the world's largest exporter of natural gas, Reuters reports that the president of the Indonesian Gas Association recently predicted that domestic demand for natural gas would rise 9% per year over the next five years to 3.6 bcfd. The increase, he said, would be largely fueled by demand for gas for power generation. Back to Top
Short-Term Energy Outlook, Highlights Back to Top
Source: Energy Information Administration
Higher Heating Fuel Bills This Winter: This winter is expected to bring with it higher heating bills than those seen last winter. Under normal weather assumptions, winter heating bills for residential consumers could average from $190 to $240 higher than last winter. The main reasons for this forecast are: demand for space-heating fuels expected to be higher than last winter, which was the warmest on record; inventories of key heating fuels--especially heating oil--are below normal and substantially below those at the outset of the winter of 1999-2000, and crude oil and natural gas prices are at relatively high levels.
This winter's heating degree-days (HDD) are assumed to be 11 percent above last winter's HDD, which were well below normal. This winter, total electricity demand is expected to be about 2.8 percent above the year-ago level under normal weather assumptions, driven by increased demand in the residential and commercial sectors, which are expected to post growth of 4.6 and 3.9 percent, respectively.
Crude Oil Prices Fall Following SPR Announcement: West Texas Intermediate crude prices are now estimated to have averaged $33.88 per barrel for the month of September, high by historical standards but well below the daily averages (over $37 per barrel) reached prior to the Clinton Administration's announcement of a limited exchange of oil from the Strategic Petroleum Reserve (SPR) on September 22. The 30-million barrel planned SPR exchange is expected to make enough additional oil available to world markets in the short-term to make a positive (if temporary) contribution toward alleviating tightness in Atlantic Basin fuel oil markets.
Natural Gas Prices High Due to Supply Tightness: Average spot prices for natural gas are estimated to have averaged about $4.96 per thousand cubic feet in September, nearly double the price from one year ago. The year-over-year differential is likely to widen somewhat by year-end. Although rising crude oil prices have encouraged natural gas prices to advance, the primary cause of these elevated gas prices has been the strained supply situation. U.S. working gas in storage is estimated to be about 9 percent below normal and about 12 percent below the year-ago level. Increases in gas production this year generally have failed to keep pace with demand.
For the complete report visit the Energy Information Administration's website at http://www.eia.doe.gov/ .
Since When is a High Oil Price a Bad Thing? Back to Top
Source: Oil and Gas Online
Excerpt from Oil and Gas Online feature article by Frederick Parnell: "For the first time in ten years, the price of oil has been making the headlines, hitting highs not seen since the Gulf War of more than US$36/bbl. It rose and fell in late 1997 and 1998, leading the oil industry to hope for a stable, high oil price, but now that it's here, the world wants to know how high it may go and if it will stabilize.
A high oil price has its pros and cons depending upon whom you talk to. On the pro side, the high price has given producers the necessary economic backing to explore for more oil to replenish rapidly depleting reserves, something that was almost uneconomic when oil hit $11. Conversely, on the con side, the high oil price has hit the pocketbooks of consumers driving up gasoline prices and resulting in an increase of inflation."
The article goes on to discuss the history of oil prices and the current oil situation. Are high prices a goodsend? Prices have allowed operators to revise budgets and activity appears to surge ahead. On the contrary however, high prices signal trouble as they affect economies and demand.
The article touches on what it states is the real issue: Stability. "While price is a critical issue, the real issue is stability, which has eluded the industry since its inception and has caused the ongoing price turmoil. OPEC has long sought price stability. Its latest plan is aimed at keeping oil within a target range of $22 to $28/bbl. Under the plan, if the price of a basket of seven OPEC crudes stays below $22/bbl for 20 trading days, the group will cut production by 500,000 b/d. Conversely, if the price stays above $28/bbl for 20 trading days, production will be increased by 500,000 b/d."
The article goes on further to discuss blame, the future, where natural gas is headed (up), and the future of oil. It says of the future, "The fact of the matter is OPEC has done all that it possibly can. The lesson learned in this "crisis" is OPEC no longer has control of the market. While it did significantly aid in the collapse of oil by opening taps at the wrong time, it did not have full control over its rebuild. Supply shortages and a strong economy were the major reason for the rebound in prices, and now that oil is at record levels, it has been proven to be out of OPEC's hands.
With increased production being absorbed into the market, not only from OPEC but from producers now back to work, inventories will fill again in time. Winter months will play a strong part at keeping prices high for the remainder of the year. The price will naturally settle at some point, but the question is for how long. There is one fact we can be sure of, we will continue to see this problem again and again and again."
To read this article in it's entirety, visit Oil and Gas Online's website at http://www.oilandgasonline.com
WASTECON 2000, October 23-26, Cincinnati, Ohio The Solid Waste Association of North America's (SWANA) 38th Annual International Solid Waste Exposition offers technical programming, training, and networking opportunities for solid waste professionals. For more information, visit www.swana.org or call 800-GO-SWANA.
Gas Compressor Association Meeting, October 25-27, 2000
Hyatt Regency Riverwalk
123 Losoya Street
San Antonio, TX 78205
210-222-1234 For more information or to register, visit www.gascompressor.org .
Above: Rotary Screw Compressor for Landfill Gas Application in Pennsylvania: Design Conditions: 1-165 PSIG (1400 SCFM); Process: Landfill Gas---48% Methane, 42.5% Carbon Dioxide; Package Description: (1) 450 HP electric motor driving a Mycom 2520L rotary screw compressor.
Below: 304 Stainless Steel Piping and Vessels throughout for LFG Application for shipment to Pennsylvania
Energy Indices
To
view energy indices for July/Aug/Sept click here.
Compressed Facts is published bi-monthly by VR Systems, Inc., 2408 Mercury Ave. Odessa, Texas, 79763, strictly for customers and vendors of VR Systems, Inc. Send any contact e-mail address changes or updates to: VR Systems, Inc., 13310 Leopard St., Ste.6, Corpus Christi, Texas, 78410 or e-mail to cayala@gascompressor.com Comments are welcomed and should be addressed to the editor at the above e-mail or by phone at (361)241-5348 or fax (361)241-5386.