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Bobby's office

METRO Forecasts Opportunity for Small Businesses in 2010

Margaret Molina — Tue, 02 Feb 2010 14:00:00 GMT

Nearly 300 contractors and sub-contractors swarmed to the George R. Brown Convention Center last week, and the resulting buzz was enough to lift many a spirit made heavy by the economy. The four-hour workshop offered a forecast of METRO light-rail construction opportunities including public utilities, roadway, landscaping, trucking, excavation, paving and street reconstruction work for 2010.

Kevin Calvin, owner of the Project Manager Group, was busy taking notes and asking questions in a breakout session facilitated by Houston Rapid Transit (HRT), the joint venture overseeing all aspects of construction on the mass transit plan known as METRO Solutions.

“It is like a life-line,” said Calvin, whose three-year-old firm has 17 employees. “It’s the only money out there. The private sector is dry, so we all need to network to break through on projects like this,” he explained, while reviewing the qualifications necessary for doing business with the rail expansion SBE Initiative.

The METRO light-rail expansion represents more than $300 million in opportunities for SBE contractors. Ongoing METRO workshops support businesses with everything from bid packaging to pre-qualification and certified payrolls.

While many of the businesses represented were of a technical nature, others were all about keeping things simple, and green. Xavier Leal, whose XLent Services include landscaping and irrigation, said he was keeping his fingers crossed as he bid on an SBE job. “We had a lot of work following Ike and that was good, but it didn’t last long enough. I need contract work to keep my company and six employees going,” Leal noted as he spoke with Karen Becerra, program advisor for the SBE Initiative.

Karl Lassberg , whose Heights-based Texas ReExcavation (TRex) company is subcontracting work through HRT, affirmed Calvin’s observations. “We love these jobs,” he said as he checked in with participants during breaks and followed up on a lead with his laptop. “We use the Web for research and promotion and did some networking through a September METRO workshop.” Lassberg’s company specializes in non-destructive vacuum excavation used to locate utilities and has already found work on the East End Corridor.

Wendell Rychlik, meanwhile, had just called Lassberg about a job. Rychlik’s firm, W.T. Byler Co., specializes in heavy civil and railroad construction. Rychlik said his firm is looking to contract with HRT on some of the larger portions of the light-rail construction underway and in the planning stages and pointed out the benefits of attending events like this.

“Networking is critical to achieving goals. You have to know whom you are working with. Karl Lassberg and I are both members of the Association of Builders and Contractors (ABC-Houston), but networking here helped us hook up in doing business together,” he added.

“The project was a huge success from our perspective,” said David Couch, managing director of METRO Solutions. “We are looking forward to working with many of these companies now and over the next few years as we roll out the rails across Houston.”

To find out more about the Rail Means Business program visit log www.railmeansbusiness.com or email info@railmeansbusiness.com

###

Editors Note:

Photographs of the event and participants are available by request to mm53@ridemetro.org

2-Feb-10 8:00 AM

Stable Prices at the pump lull motorists

Bret Clanton — Sat, 02 Jan 2010 12:00:00 GMT

A deep recession, home foreclosures, job losses, swine flu — among the many things Americans had to fret about in 2009, the price of gasoline ranked pretty low.

After topping $4 a gallon in 2008, U.S. gasoline prices failed to crack even the $3 mark last year, the first time in four years that hasn't happened.

Held in check by lower oil prices and a sputtering economy, the national average price for gasoline — after starting the year at $1.62 — rose to $2.69 a gallon in October but never went higher, according to AAA statistics.

In Houston, prices were even lower. The daily average bottomed at $1.43 in January and peaked at $2.53 in June.

But U.S. drivers may not be so lucky in 2010.

Prices start the new year at one of the highest points they've ever been for January, and they typically rise in the spring and summer as warmer weather spurs more driving. In addition, signs the economy is on the rebound boosted crude oil prices at the end of 2009, lifting pump prices along with them, and that trend is likely to continue.

That's why many experts say U.S. gasoline prices will likely return to $3 territory by this summer and generally be higher this year.

“I do think an improving economy is going to give us higher prices in 2010,” said Peter Beutel, industry analyst with Cameron Hanover in New Canaan, Conn., who predicts pump prices could rise by 50 cents or more from current levels by this summer.

On New Year's Day, the average retail gasoline price nationwide was $2.65 a gallon, up a penny from Thursday, up 6 cents from a week ago and about a dollar higher than on Jan. 1, 2009. In Houston, the average price was $2.46, up a penny from Thursday, up 7 cents from last week and about a dollar higher than a year earlier, according to AAA's Daily Fuel Gauge Report.

The U.S. Energy Information Administration predicted in December that rising crude prices will push U.S. gasoline prices toward $3 per gallon during this year's summer driving season.

That could be bad news for U.S. consumers still struggling to get back on their feet after the worst recession in decades. But a big jump at the pump is not a given this year.

The economic rebound could go slower than expected, keeping fuel demand slack. Oil refiners, which have recently been closing plants and cutting output, also could decide to ramp up production again, resulting in surpluses. Yet seasonal factors alone should be enough to push prices higher than they are today.

“There hasn't been one year where gasoline wasn't cheaper in the winter than it was in the summer,” said Jason Toews, co-founder of gasbuddy.com, a Web site based in Minnesota that helps consumers find low-cost gas stations in their areas.

Prices plateau

In 2009, gasoline prices started in January at their lowest level since 2003. But pump prices began to rise in the spring and summer of 2009, then remained roughly stable through the end of the year, even as oil prices topped $80 a barrel.

Lower pump prices in 2009 marked a break from a pattern of escalating prices in recent years.

Average U.S. gasoline prices broke $3 a gallon for the first time in August 2005, after Hurricane Katrina hobbled Gulf Coast oil refineries, and had exceeded the mark every year since. Regular hit a record $4.11 a gallon in July 2008 amid a historic run-up in crude oil prices to nearly $150 a barrel.

Crude oil accounts for roughly half the cost of gasoline, so changes in oil prices affect prices at the pump. In trading Thursday, crude for February delivery added 8 cents to $79.36 a barrel.

Price spikes at the pump in recent years have desensitized U.S. drivers, making it seem like current prices are a bargain, though they are still high by historic standards, Toews said.

“Nobody is scared by $2.60 a gallon anymore,” he said, noting pump prices only surpassed $2 a gallon for the first time in 2004.

A hint of less gasoline use

There is, however, some evidence that rising pump prices this fall may have caused some Americans to dial back their gasoline usage.

U.S. highway travel fell in October by 0.5 percent from a year earlier, the first decline in five months, the U.S. Transportation Department said last month. Energy Department data also shows motor fuel consumption was down slightly in October from a year ago.

Dan Ronan, spokesman for AAA Texas, said weaker gasoline demand last year could reflect not only a recessionary pullback in driving, but more permanent changes in driving patterns and a broader shift to more fuel-efficient vehicles.

Look around, he said. “You don't see many cars on the road anymore that get 12 or 14 miles to the gallon.”

brett.clanton@chron.com

2-Jan-10 6:00 AM

U.S.Rig count hits all time for the year

Karl Lassberg — Mon, 16 Nov 2009 12:00:00 GMT

The number of rigs actively exploring for oil and natural gas in the U.S. this week has risen by 23, or 2.1 percent, to 1,101, according to data kept by Houston-based Baker Hughes.

A total of 728 rigs were exploring for natural gas (down six) and 361 for oil (up 29), and 12 are listed as "miscellaneous." A year ago this week, the rig count stood at 1,941.

The international rig count is down 3, to 983.

The rig count peaked at 4,530 in 1981, during the height of the oil boom. The industry posted a record low of 488 in 1999.

Baker Hughes has a really cool interactive map of rig data that shows you detailed locations of rigs that can be sorted based on the type of well being drilled, depth and many other metics.

Posted by Tom Fowler

16-Nov-09 6:00 AM

Shell expects the Americas to have big role

Brett Clanton — Sat, 14 Nov 2009 00:00:00 GMT

Royal Dutch Shell sees a bigger role for North and South America as it seeks to boost global output of oil and natural gas in coming years, said Marvin Odum, president of the company's U.S. division.

Going forward, the region should be a “disproportionately growing part of Shell” as new projects come online in deep waters of the Gulf of Mexico and Brazil, the Canadian oil sands and natural gas fields in the U.S. and Canada, Odum said in an interview with the Chronicle this week.

“There is a real focus on this part of the world inside of Shell,” Odum said, adding that while North and South America account for about a quarter of the company's production today, investment will be “much higher than that” in the future.

Even so, he still expects hundreds of Shell layoffs in Houston, where Shell employs nearly 13,000, under a recently announced re- organization plan that will ax 5,000 Shell jobs globally by year's end.

New Shell CEO Peter Voser launched that plan after the global economic slowdown gutted demand for energy and sent oil and gas prices plunging from record-high levels in July 2008.

Shell, based in The Hague, with U.S. headquarters in Houston, said profits in the third quarter slid 62 percent to $3.25 billion. It also reduced its 2010 capital spending budget to $28 billion from $31 billion this year.

But Odum said the reorganization is not simply a reaction to the difficult economic environment. “The goal here is restructuring to a much more streamlined, effective company,” he said. “It's not about how many jobs can we cut to cut costs.”

Such moves, along with rising commodity prices, recently led Credit Suisse to strike a more positive tone about major oil companies despite dismal earnings in recent months. “The risk-reward on the sector now looks better than it has for some time,” the investment bank said in a Nov. 2 report.

Voser, however, cautioned last month that “the outlook remains very uncertain, and we are not expecting a quick recovery.”

Shell still projects it will grow oil and gas production 2 percent to 3 percent annually through 2012.

Brazil, Canada, Alaska

In the Americas, Shell will see growth in the deep water from its massive new BC-10 project offshore Brazil, as well as its soon-to-open Perdido platform in the Gulf of Mexico. A 100,000 barrel-per-day expansion in the Canadian oil sands is also coming in the next couple of years, Odum said. And Shell hopes to win final approval soon to drill offshore Alaska.

Shell also has amassed a significant portfolio of natural gas opportunities in the U.S. and Canada, he said.

South Texas position

A 2007 partnership with Calgary-based Encana gave Shell access to Louisiana's Haynesville shale, while a nearly $6 billion deal last year to acquire Duvernay Oil Corp. provided entry into gas fields in Alberta and British Columbia. Shell also has a position in the U.S. Rockies and South Texas, as well as others it won't yet reveal.

“We could be drilling at twice the rate we are today,” Odum said.

But at the moment, Odum and many in the oil and gas business are keenly focused on the outcome of climate change legislation in Congress, which they worry will burden the U.S. industry with extra costs and force job cuts.

Shell supports a cap-and-trade system that would place limits on greenhouse gas emissions and create a market for trading pollution permits.

More jobs

But Odum said any climate bill should also allow for greater production of oil and gas, nuclear and other traditional energy sources, rather than narrowly focusing on renewables, which are still many years away from being able to meet the nation's vast energy needs.

“The truth is, if we want to improve the balance of trade, we want more jobs in the U.S., you need to do more oil and gas in the U.S., and you need to do more renewable and alternative energies,” he said.

13-Nov-09 6:00 PM

Chesapeake Energy raises production forecast

Anna Driver — Wed, 14 Oct 2009 12:00:00 GMT

HOUSTON, Oct 13 (Reuters) - Chesapeake Energy Corp (CHK.N) raised its natural gas production forecast for 2009 and 2010 on Tuesday and said it planned to spend more on drilling.

The company said it expected production to rise 5 percent to 6 percent in 2009, compared with its prior forecast for an increase of 4 percent to 5 percent.

For 2010, Chesapeake expects production to increase by 8 percent to 10 percent, compared with its August forecast of 7 percent to 8 percent, according to a filing with the U.S. Securities and Exchange Commission.

Chesapeake expects to spend $3.15 billion to $3.35 billion on drilling in 2009, up from its August forecast of $3 billion to $3.2 billion. For 2010, exploration spending is expected to increase to as much as $4.7 billion.

The outlook was provided ahead of the company's annual meeting with investors on Wednesday.

Shares of Chesapeake, which is based in Oklahoma City, Oklahoma, rose about 1 percent to $29.72 in after-hours trade.

(Reporting by Anna Driver in Houston; Editing by Ted Kerr)

14-Oct-09 7:00 AM

The natural gas whiplash * updated

Karl Lassberg — Fri, 11 Sep 2009 01:00:00 GMT

The ongoing decline in natural gas prices chips away at some parts of the industry while providing opportunity to others.

Trident Resources, a private Canadian firm focused on coal bed methane plays in Alberta, Canada, filed for Chapter 11 bankruptcy protection today, citing the low prices for the move.

And Epsilon Energy, another Canadian producer, started production for a new Marcellus Shale well earlier this month and shut in another well a few days later when it couldn't get a good price on the market. In an e-mail exchange Epsilon CEO Zoran Arandjelovic said the price offered was below $2, but he hopes it's just a temporary issue.

+++++
Update:
Houston-based Goodrich Petroleum Corp., which is in a joint venture with Chesapeake Energy in the Haynesville Shale, has suspended drilling in Texas to conserve cash for Louisiana leases, according to Bloomberg.

"As much as 15 percent of mineral leases on the richest portion of the 3.5 million-acre Haynesville deposit may be up for sale by year's end by companies that can't afford to keep them after fuel prices dropped, Chief Operating Officer Robert C. Turnham said yesterday in a interview in New York," Bloomberg reports.
++++++++++

But if you're in the natural gas storage business these could be heady days, notes the WSJ. Houston-based Enterprise Products Partners is reaping the rewards, as is a natural gas storage firm tied to Houston-based Centaurus Advisors.

The analysts at Societe Generale (just say "SocGen" and everyone will know who you mean) are not too optimistic, however. They say a sustained $3 per MM/Btu price "should trigger production cuts this fall" and as banks make their end-of-year reevaluations of E&P company reserves "credit lines will be more expensive and thus future development costs will increase."

The current prices are well below the marginal cost of production of the most profitable shale play, Haynesville -- $2.88 MMBtu, an estimate by Bentek Energy (based on a zero-dollar net present value and 10% IRR).

10-Sep-09 8:00 PM

Report sees rebound in global oil demand

Tom Fowler — Wed, 09 Sep 2009 11:00:00 GMT

Global oil demand will resume its climb next year and should be back to 2007's highs by 2012, IHS-Cambridge Energy Research Associates reported Tuesday.

The recovery will come more quickly than after the last major oil bust in 1980 — when demand took a decade to reach its 1979 level — because developing nations like China and India are still primed for growth, said Jim Burkhard, managing director of global oil research for the firm.

Growing populations in those countries continue to become more affluent, as shown by projections that new-car sales in China will top U.S. sales this year.

“What's changed in a generation is the regional composition in demand growth,” Burkhard said.

But once demand for oil tops the old record, it will grow more slowly than it did before the recession, thanks to flat or even declining demand in the developed nations.

U.S. gasoline consumption is unlikely ever to top its 2007 peak, Burkhard said, because of laws requiring more ethanol in gasoline and tougher fuel economy standards.

In Europe, a shift to diesel-powered cars and light-duty trucks has also led to recent drops in oil demand. Aging populations in Europe and Japan also use less fuel.

On Tuesday benchmark crude rose $3.08, or 4.5 percent, to $71.10 per barrel on the New York Mercantile Exchange. Analysts credited a falling dollar for pushing investors to seek out commodities such as oil and gold as a hedge.

Oil demand reached 86.5 million barrels per day in 2007 but has since plummeted with the global recession, with 2009's estimated demand expected to come in around 83.8 million barrels.

CERA predicts 2010 demand will grow by 900,000 barrels to 84.6 million barrels.

By 2012, demand should reach 86.9 million barrels and by 2014 estimates grow to 88.9 million barrels.

The recovery from the 1980s' oil demand crash took 10 years because prices remained high and consumers found substitutes for oil.

“In the 1980s, the largest area of demand decline came from power generation, where oil was replaced by readily available substitutes like coal, gas or nuclear,” Burkhard said.

“Today, global demand growth comes from the transportation sector in emerging markets where there are fewer options for switching fuels.”

There are signs that the combination of fossil fuels and electricity — such as powers the growing number of gasoline-electric hybrid cars on the roads — will counter oil demand, but widespread acceptance is still a number of years off, Burkhard said.

9-Sep-09 6:00 AM

Locates at the Design Stage Prove Valuable

Karl Lassberg — Thu, 30 Jul 2009 21:00:00 GMT

Underground utility construction projects most often are classified as either new construction, usually to extend or upgrade services, or replacement/rehabilitation of old or failing buried infrastructure.

However, many projects are to relocate utilities because of street, highway improvements or other types of general construction that makes it necessary to move buried utilities to a new location. Although planning for such projects begins months – even years – before ground is broken, locations of existing buried utilities may not be identified until shortly before construction is scheduled to begin.

Not knowing where facilities are buried during planning can result in costly delays and safety issues once construction is under way.

Mapping utilities before a project begins is one element in the discipline of subsurface utility engineering (SUE), promoted by the U.S. Department of Transportation Federal Highway Administration and, until recently, used primarily on large highway projects.

SUE is an engineering process that goes far beyond locating and marking buried utilities, and although SUE is being applied to projects other than highway construction, many project owners do not retain SUE specialists. For whatever reasons, many project owners and engineer consultants continue to exclude precise utility location from the planning stage.

Early knowledge beneficial

Brian Dorwart, P.E., P.G., vice president of Haley & Aldrich Inc., is an engineer with experience in planning a wide variety of underground utility projects, and he recognizes the value and importance of confirming locations of buried utilities early in a project's planning.

"Knowing where utilities are allows engineers to take them into account from the outset and manage the risk during construction," Dorwart said. "Encountering buried facilities unexpectedly during drilling or excavation can create safety hazards and cost money to pay contractors to stand by while planning adjustments are made. All this results in scheduling delays that are significantly higher than the cost of reliable locating early in the design phase.

"I prefer," Dorwart continued, "to make locates during the permitting phase and while working on the base plan. We do our research, do vacuum excavation verification of utility locations and plan with realistic data.”

Dorwart said that he wants to know the locations of utilities within 25 to 50 feet of the projected bore or excavation path.

"We cover that much area because we need to develop the most cost effective route through congested areas that have significant surface access restrictions," he explained.

Verification is important because utilities often are not present in available records or they are not in the locations indicated on records.

"Urban utilities in particular often are not at locations indicated on available records," Dorwart said. "Additionally, older cities often include abandoned and removed utilities on locate plans that occupy otherwise free space, and there often is no reliable procedure for their removal because of liability issues. Engineering around these ‘phantom' utilities and redesigning during construction because of mislocated utilities can result in significant cost to new projects for unnecessary, new right of way acquisition, or planning locations that could have been avoided."

In addition, municipal utilities such as sewers often have no build restrictions above the utility to permit access for repairs.

"I know of one project where a sewer owner required that a significant segment of a newly installed utility be removed and reinstalled because it had been built over an existing sewer," Dorwart said.

Time sensitivity

Some project planners may not make utility locations early because of the time it requires.

Many state one call agencies process requests for member organizations to locate and mark their buried facilities before construction begins. Depending on where the project is, facility owners and operators may not respond to requests for locates far in advance of construction.

"If the goal is efficiency in damage prevention, one call design tickets for locating and marking during the project planning make sense," said Walt Kelly, excavation damage prevention consultant.

"If the immediate goal is taking calls prior to excavation, then design tickets are not appropriate, and a separate, parallel system should be established. In the past, New Jersey and Virginia actually fined designers and excavators who tried to use one call for assisting in design. But that is no longer the case."

In Kelly's home state of Minnesota, Gopher State One Call (GSOC) has non excavation tickets and, in fact, requires that GSOC be contacted in many circumstances involving contract and bid proposals.

However, even though many one call centers do process engineering and design requests from facility owners and operators, many utilities are not owned by one call members.

J.D. Maniscalco can view the issue of whether to locate or not locate during planning from three perspectives: he is executive director of the Utility Notification Center of Colorado, a board member of the Common Ground Alliance (CGA) representing one call centers, and past chairman of One Call Systems International (OCSI) and currently is chairman of the OCSI data collection committee.

The Common Ground Alliance (CGA) is the private, nonprofit organization that has taken the lead in developing and implementing industry Best Practices to help protect underground utilities for those who live and work by them, said Maniscalco.

Best practice

He cites the CGA Best Practice statement covering identification of existing facilities in the planning and design phase which recommends:

"During the planning phase of the project, existing facilities are shown on preliminary design plans. The planning documents include possible routes for the project together with known underground facility information. The various facilities are then given the opportunity to provide appropriate feedback.

“During the design phase of the project, underground facility information from the planning phase is shown on the plans. If information was gathered from field located facilities, from underground facility surveys or from subsurface utility engineering, this is noted on the plans. The designer and the contractor both know the quality of the information included on the plans. If an elevation was determined during the information gathering, it is shown on the plan. The facilities shown include active, abandoned, out of service, and proposed facilities. The design plans include a summary drawing showing the proposed facility route or excavation including streets and a locally accepted coordinate system. The plans are then distributed to the various facility owners/ operators to provide the opportunity to furnish additional information, clarify information, or identify conflicts."

Following this practice, said Maniscalco, provides complete underground facility information and including this data on design drawings reduces the hazards, simplifies coordination and minimizes the cost to produce the final project.

"Many state one call laws do outline procedures for making locates during the design process, but don't necessarily require them to be made in the same time frame," Maniscalco said. "But we hear that many times, these requests go unnoticed and unattended for that reason. However, there are some one call centers that do handle design locates routinely and the majority of facility owners do a fine job to accommodate the request by either providing maps or physical marks with paint or flags."

Workload

During the past decade, the drive to build and the resulting number of locate tickets has made it difficult to fill requests for locates to use in planning.

"Some facility owners and operators have struggled to keep up with processing basic location requests so they can be completed before excavation is scheduled to begin," he said. "Possibly with the slowdown in construction, some of this pressure may be relieved."

Complicating the problem, Maniscalco added, are instances when a large project goes to bid and several competitive firms overload the system firms with requests for the same information. The company receives the contract and locates are requested again for the same area when work is started.

One way some project planners have expedited one call generated locates for planning is to indicate that earth will be moved which changes the notification to an excavation notice, he added.

In conclusion, Maniscalco said there currently is no national effort directed at promoting utility location during planning.

"We see pockets of private companies, SUE companies hired by utility owners to gather information, but no industry organized group advocating the benefits of making utility location a part of the process," said Maniscalco. "In Colorado, we had a pilot project five years ago to encourage five major counties to begin a project that would build data into the system so it would be available, but it became so large and unwieldy, it was dropped."

"The logical development is to incorporate SUE information into a system," he said. "It will have to begin small in a city, then to a county, and expand a step at a time. The more detailed information made available will help the industry improve overall management of right of way."

FOR MORE INFORMATION:
Common Ground Alliance, (703) 836 1709, www.commongroundalliance.com.
Haley & Aldrich Inc.: Brian Dorwart, P.E., (603) 625 5353, bcd@haleyaldrich.com
Walt Kelly LOOK UP INFO
Utility Notification Center of Colorado: J.D. Maniscalco, (303) 232-1991, www.uncc2.org/web/

Further information: SUE and Highway Construction

Subsurface utility engineering (SUE) is much more than locating and marking underground utilities – it is an engineering process that has evolved over the past few decades. SUE was born in the early 1980s when it was recognized that traditional methods of dealing with subsurface utilities were not working.

The SUE process combines civil engineering, surveying and geophysics. It utilizes several technologies, including vacuum excavation and surface geophysics.

When the Federal Highway Administration (FHWA) began promoting SUE in the early 1990s, only a few state departments of transportation (DOTs) were known to be using it. Today, nearly every state DOT has used it to some extent on highway projects and SUE has expanded into Puerto Rico and Canada. Many state agencies now use the SUE process routinely on every project. In addition, SUE is being used by local highway agencies, utility companies and design consultants and has expanded beyond the highway industry to military, airport, transit, port and other transportation industries.

SUE services are provided by specialty companies.

The American Society of Civil Engineers (ASCE) has established a national standard stating responsibilities of engineers, project owners and contractors for the collection and depiction of existing subsurface utility data on design and construction documents. The FHWA and several SUE providers helped fund this activity. Compiled from information on the FHWA web site, www.fhwa.dot.gov.

30-Jul-09 4:00 PM

Oil higher despite mixed signals on economy

Karl Lassberg — Tue, 28 Jul 2009 12:00:00 GMT

Oil prices pushed higher again today, as stock markets dipped with mixed signals on the economy.

Benchmark crude for September delivery rose 33 cents to settle at $68.38 a barrel on the New York Mercantile Exchange.

Oil has rebounded by almost $10 a barrel this month as stronger economic results from the U.S. and China boosted investor optimism along with better than expected second-quarter earnings results from many companies.

The Dow Jones industrial average has risen about 11 percent in the last 10 days, but was down slightly in today's trading.

The government said today that new U.S. home sales jumped 11 percent in June, the largest amount in nearly nine years.

Sales have risen for three straight months, but the median sales price of $206,200 was down 12 percent from $234,300 a year earlier.

The report initially sent oil — and the stock markets — higher.

But even with growing signs of optimism, demand for oil has remained weak.

“Oil can't stand on its own,” said Phil Flynn of Alaron Trading. “It's looking at what the other markets are doing.”

Peter Beutel of Cameron Hanover said oil also has gotten support from refineries running at levels well below years past.

“That's the only fundamental factor for prices to be higher,” he said.

Prices at the pump moved up 0.8 cents overnight to $2.50 a gallon, according to auto club AAA, Wright Express and Oil Price Information Service. Prices are now 3.5 cents higher than a week ago, but 14.8 cents below levels of a month ago and $1.47 down from year-ago levels.

In other Nymex trading, gasoline for August delivery rose 1.88 cents to settle at $1.9347 a gallon and heating oil gained 1.53 cents to settle at $1.7966. Natural gas for August delivery fell 9.1 cents to $3.604 per 1,000 cubic feet.

In London, Brent prices rose 49 cents to $70.81 a barrel on the ICE Futures exchange.

28-Jul-09 7:00 AM

OPEC to add 2 million b/d to NGL capacity

Karl Lassberg — Tue, 14 Jul 2009 17:00:00 GMT

By OGJ editors
HOUSTON, July 13 -- Natural gas liquids and condensate projects slated for start-up 2009-10 in some countries of the Organization of Petroleum Exporting Countries will add 2 million b/d to capacity at peak output. That’s according to the recently released Oil Market Report from the International Energy Agency. Despite the current weak market outlook, said the agency, the long-lead time expansion projects are moving forward.

Almost all the projects currently slated to come online over the next 18 months have been plagued by delays related to construction, engineering, and other technical complications as well as by a shortage of skilled labor.

Country plans
IEA data show that Middle East producers Saudi Arabia, Qatar, Iran, and the UAE will provide 90% of the increase, while Nigeria will account for the remaining 10%. “The critical need to boost natural gas output for reinjection at aging oil fields” is a primary focus for many of the projects, said the report.

In the Middle East, a shortage of gas supplies to meet rapidly rising domestic demand from the electric power sector, at desalination plants, and for industrial use has also kept expansion plans on track, if not on schedule.

-- Saudi Arabia’s capacity increases account for 34% of the growth over 2009-10, with peak capacity additions totaling 660,000 b/d. The nonassociated Hawiyah NGL recovery project will provide about half of the growth, with peak capacity of 300,000 b/d by about 2011. The project’s start-up was delayed to 2009 from 2008, said IEA.

The Khursaniyah gas processing plant has also been overwhelmed with delays; installed capacity of 290,000 b/d NGL production is not expected to be operating until yearend 2009. An additional 70,000 b/d of condensate capacity is linked to the massive 1.2-million-b/d Khurais oil field development, which formally launched last month.

It is unclear, however, when the new capacity will be fully online, given Saudi Aramco’s “challenge of adjusting its surplus crude operating capacity in the current weak demand environment,” according to the report.

-- After overcoming considerable construction and technical delays, Qatar is on track to ramp up gas liquids by a further 545,000 b/d by yearend 2010 with six projects at North field. Major capacity increments are likely from Qatargas Trains 4, 5, and 6 with a combined capacity of 460,000 b/d.

Start-up of the Al Khaleej Gas Phase 2 Project (AKG-2), being developed as part of the Ras Laffan LNG expansion project, will contribute 40,000 b/d to condensate production capacity. AKG-2 is being developed to supply natural gas to domestic markets, while associated condensate and NGLs is for export.

-- IEA says Iran plans to increase its condensate and NGL capacity by about 245,000 b/d over 2009-10. The country’s massive South Pars project has suffered delays and costly overruns, but completion of Phases 6-10 will provide most of the growth in capacity.

The gradual start-up of capacity at South Pars 6, 7, and 8 is key to the country’s enhanced oil recovery project at onshore Aghajari field, according to the IEA report. The gas-reinjection project is designed to boost output levels by about 100,000 b/d but technical issues, the field’s age, and challenging corrosive issues with the pipeline, may limit the recovery rate.

Other projects in Iran, such as the Anaran development, are on hold at present. StatoilHydro pulled out of the project earlier this year, in part due to the costly overruns the company suffered during development of Phases 6-8.

-- The UAE plans to add about 340,000 b/d of installed capacity by yearend 2010, with start-up of the delayed 270,000-b/d Habshan OGD3 processing slated for later this year.

-- Nigeria’s start-up of the Total-operated Akpo gas and condensate project will increase Nigeria’s installed capacity by a further 175,000 b/d. The Akpo development came online ahead of schedule in April.

Nigeria’s gas liquids capacity also will increase this year by production from Agbami and EA fields, brought online in second-half 2008. These fields will peak at 50,000 b/d and 40,000 b/d, respectively.

14-Jul-09 12:00 PM

NASCAR Nationwide Series: Entry List For O'Reilly Challenge at Texas Motor Speedway

noemail@tex-rex.com — Fri, 06 Nov 2009 20:00:00 GMT

Entry List For O’Reilly Challenge at Texas Motor Speedway Read the Full Release Here >> CAR DRIVER MAKE SPONSOR 0 Jeremy Clements Chevrolet SponsorDavis.com 1 James Buescher Chevrolet Miccosukee Resort & Gaming 1 Mike Wallace Chevrolet NuTone Heating & Cooling / iQ Drive 5 Mark Day Chevrolet 31-W Insulation 6 David Ragan Ford Discount Tire 7 Danny O'Quinn Jr. Chevrolet SK Motorsports 9 John Wes Townley* Ford Zaxby's 10 Kasey Kahne Toyota Great Clips 11 Mike Bliss Toyota Ridemakerz 12 Justin Allgaier* Dodge Verizon Wireless 15 Michael Annett* Toyota Germain Racing 16 Matt Kenseth Ford CitiFinancial 18 Kyle Busch Toyota Z-Line Designs 20 Joey Logano Toyota GameStop 23 Robert Richardson Jr. Chevrolet Mahindra Tractors 24 Eric McClure Ford Hefty 26 Kevin Conway Chevrolet Extenze 27 Jason Keller Ford Scott Products 28 Kenny Wallace Chevrolet U.S. Border Patrol 29 Jeff Burton Chevrolet Holiday Inn / Holiday Inn Express 32 Brian Vickers Toyota Dollar...

The Original Young Gun to Turn Back the Clock at Texas Motor Speedway

noemail@tex-rex.com — Fri, 06 Nov 2009 18:00:00 GMT

T-Rex Engineering & Construction / T-Rex Services to sponsor veteran driver Bobby Hillin, Jr. and the No. 81 MacDonald Motorsports Dodge in the upcoming O’Reilly Nationwide Series Race November 7. HOUSTON—October 30, 2009—Retirement is never easy for a race car driver but in 2000, after 18 years of racing, Bobby Hillin, Jr. decided it was time to move on. Question was—what now? Applying the ambition and drive he had from success in racing at a very young age, Hillin founded T-Rex Companies with just one truck and a prayer. Today, he overseas two companies— Texas ReExcavation, L.C., a non-destructive sub-surface vacuum excavation company, and T-Rex Engineering & Construction, L.C., a subsea design and fabrication concern that caters to the offshore oil & gas industry. This weekend marks the return of what many have since called the Original Young Gun to Texas Motor Speedway. In some respects, Hillin paved the way for younger drivers to enter the sport. When I started my...

Hydro Excavation Operator

Thu, 25 Feb 2010 12:55:10 GMT

Title: Hydro Excavation Operator
Description:

This is a labor intensive position not just a driving position. Hydro excavation operators are responsible for loading all necessary equipment on trucks and being prepared for the hydro excavation job at hand. Operators are responsible for the safety of themselves, the technician and the client. Operators must be time accountable, responsible and self motivated. Long hours may apply and some travel is required.

Required Experience:

Hydro excavation or line cleaning experience is preferred. A minimum of Class B driving experience is required.

This Job Requires the Follow Skills:

Class B CDL, TWIC Card, good driving record, drug test mandatory, DOT physical, lift 50-100 pounds often

Education Required: High school or GED.
Planned Duration of Employment: Full Time
Salary($): $13.00 - $18.00
Position reports to: JD Teague

Contact info:

Human Resources (Add to Contacts)

T-Rex Services

3025 Maxroy

Houston, TX 77008
US

Hydro excavation in Amarillo, Tx and Panhandle Region

Thu, 18 Feb 2010 20:07:59 GMT

Amarillo (the 15th largest city in the US) is considered the regional economic center for the Texas Panhandle as well as Eastern New Mexico and the Oklahoma Panhandle. Oil and Helium extraction lend the city to have a strong industrial economy...and where there is industry, there is T-Rex. T-Rex boasts a diversified fleet including the all weather heated trucks necessary when that unexpected "norther" hits to prevent the truck from freezing. Keep in mind these trucks are still running the big 5000 CFM positive displacement blowers that harness the big vacuum so we don't have to slurry your jobsite up.

The T-Rex Difference in hydro excavation:

Fleet of 15 trucks.
Ability to justify all billing with GPS event back-up reports.
Ability to use remote hose access capabilities (up to 400' from truck).
Depth range of 65' and counting.
Provide emergency services 24/7/365.
No overtime rate for nights/weekend/holidays.
Provide small civil services: such as concrete breaking, saw cutting, sidewalk repair.
Backfill services.
Trucks are true hydro excavation trucks not line cleaning trucks.

For more information about our service areas, Contact your T-Rex problem solver today.

Hydro Excavation - Houston,Texas and Surrounding Cities

Thu, 18 Feb 2010 19:53:29 GMT

Houston: Houston Texas is the home to T-Rex Services corporate office. Bobby began doing hydro excavation in Houston with one truck long before most people in Houston even knew what hydro excavation was. Since those days T-Rex has now gown to three offices in Texas (Houston, Dallas, and Midland) with a fleet of 15 trucks! In Houston alone we have hydro excavation trucks sporting both heavy duty hydro capabilities and smaller air knife trucks for the subsurface utility engineering market. From Houston we cover the additional markets of: San Antonio / Austin: Our good friends in Austin and San Antonio have been good to T-Rex over the past 9 years and for that we are greateful. The ground conditions in both cities are tricky due to the limestone formations but its nothing we haven't been through time after time. Once again our equipment seperates us from the pack. T-Rex can easily utilize our Gap Vax trucks to out dig small trailer mounted rigs with limited digging...

Hydro Excavation - Dallas, Texas

Tue, 09 Feb 2010 15:23:21 GMT

T-Rex is growing! We are proud to announce the opening of our DallasTexas branch in December of 2009. While the office is new, T-Rex's hydro excavation experience in Dallas is not. Over the past 10 years we have done many vacuum excavation jobs in Dallas and now we are committed to the market full time. Our Dallas area sales representative Mike Cowboy Coulter has been around the pipeline industry his entire life. He brings vast pipeline, hydro excavation, CAD welding, and cathodic protection experience with him. Between the Houston, Midland and now the Dallas office, T-Rex can easily cover all of Texas and Oklahoma with a hop, skip and a jump. If you are new to hydro excavation we will walk you through it step by step. If you have been utilizing another vendor please consider giving us a shot . We will work hard to earn and keep your hydro excavation business! Give Mike a call at 972-955-6464 and experience the T-Rex difference: The T-Rex Difference in hydro excavation: ...

Hydro Excavation - Shreveport, LA

Tue, 09 Feb 2010 14:06:47 GMT

T-Rex is pleased to announce our first office outside of Texas...Shreveport Louisiana! Much like our experience in West Texas, T-Rex did not so much choose Louisiana for hydro excavation and super sucker services as our clients told us we had to! Prolific natural gas drilling in the Haynesville Shale deposit has lead to a freenzy of drilling rigs that need to be cleaned and require our masssive 5000 CFM positive displacement blowers and heavy duty sludge pumps to move drilling mud out of storing vessels and into transport vehicles for recycling. In the drilling Industry our equipment are commanly known as super suckers. But don't let that fool you, our fleet are still full blown hydro excavators and in our nine years of operation T-Rex has done plenty of work in Louisiana . We are excited and humbled to bring our competitive spirt and new cathodic protection services to cajun country. Some things never change and as always you can count on us 24/7/365.. just pick up the phone and...

Hydro Excavation - San Antonio & Austin, Tx

Tue, 09 Feb 2010 14:05:34 GMT

Our good friends in Austin and San Antonio have been good to T-Rex over the past 9 years and for that we are greateful. The ground conditions in both cities are tricky due to the limestone formations but its nothing we haven't been through time after time. Once again our equipment seperates us from the pack. T-Rex can easily utilize our Gap Vax trucks to out dig small trailer mounted rigs with limited digging capacity and range, thus lowering your overall job cost and speeding up you timeline. The difference is clear:

The T-Rex Difference in hydro excavation:

Ability to justify all billing with GPS event back-up reports.
Ability to use remote hose access capabilities (up to 400' from truck).
Depth range of 65' and counting.
Provide emergency services 24/7/365.
No overtime rate for nights/weekend/holidays.
Provide small civil services: such as concrete breaking, saw cutting, sidewalk repair.
Backfill services.
Trucks are true hydro excavation trucks not line cleaning trucks.

T-Rex Associations

Mon, 08 Feb 2010 23:03:45 GMT

	Houston Contractors Association
	Associated Builders and Contractors, Inc. Greater Houston Chapter
	IS Networld
	HASC (Houston Area Safety Council)

ISTC (Industrial Safety Training and Council)

Hydro Excavation- Beaumont/Port Arthur Texas

Mon, 08 Feb 2010 22:09:03 GMT

Beaumont/Port Arthur is our home away from home! After decades of stagnation and neglect in the area economy, Port Arthur is in the early stages of an economic boom. Several large projects involving the energy infrastructure are underway or proposed and T-Rex is there. From refinery plant expansion to subsurface utility engineering T-Rex will help you hydro excavate non-destructively. As always, we can provide the dumpsite if you don't have on. Call 24/7/365 to experience the T-Rex difference:

Fleet of 15 vacuum excavation trucks.

Ability to justify all billing with GPS event back-up reports.

Ability to use remote hose access capabilities (up to 400' from truck).

Depth range of 65' and counting.

Provide emergency services 24/7/365.

No overtime rate for nights/weekend/holidays.

Provide small civil services: such as concrete breaking, saw cutting, sidewalk repair.

Backfill services.

Trucks are true hydro excavation trucks not line cleaning trucks.

Cathodic Protection

Mon, 08 Feb 2010 17:17:40 GMT

T-Rex not only provides high quality hydro excavation services, we can also provide CAD welding, test lead, or anode installation at the same time! T-Rex is : NACE CP1 Certified HASC operator qualifications certified in: 190 Q Anode Installation 190 Q Coating Repair 190 Q Test Lead Installation Our corrosion clients have been complaining that the other guys have long lead times and lack a sense of urgency. They know T-Rex understands their timeline and is committed to being the subcontractor they can trust so, they asked us to assist them in their cathodic protection business. Not only do we have the right attitude, we have the diverse fleet with the best truck for the right job. If you have a simple 3' deep anode to install we will use our Vacmaster 4000. If you have a deeper dig that might be in harder ground we will use our Prodigy unit...which digs with either air or water. If the ground is too hard for air knife work then we simply switch over to hydro...

Line Locating & Line Designating

Wed, 03 Feb 2010 15:30:44 GMT

Looking for a utility line? T-Rex can do the above ground designation to locate the vicinity of the line and put the paint on the ground by using soft dig or safe digging techniques. Then if you need to get a hydro-vac truck to safely and non-destructively expose the utility we've got your back there to! In short we want to be your first and only phone call.

You name a utility...and we can find it.

Pipelines – gas, chemical, petroleum
Phone lines
Electrical lines/conduits
Cable
Fiber Optics
Natural gas lines
Street lighting & traffic signal circuits
Subsurface Utility Engineering

We provide Hydro Excavation Line Locating / Designating to several industries including but not limited to:

View more photos of Line Locating/Designating

Cost/Safety Advantages

Tue, 02 Feb 2010 22:15:09 GMT

To fully understand the cost advantages of vacuum excavation we have to look at the "Big Picture."

Hydro-excavation can virtually eliminate the unknown or unintended consequences from any project involving drilling, trenching or excavation.

A 2001 survey of DOT's and transportation contractors ranked utility relocations the number one cause of transportation delay. These delays are often related to uninformed engineering due to poor as-builts.

Key Advantages

Eliminates risk of injury to personnel

Eliminates risk of damage to underground facilities

Eliminates costly delays due to damage of underground facilities

Eliminates costly repairs due to damage of underground facilities

Eliminates liability or litigation associated with damage to underground facilities

Eliminates service interruption or public safety due to damage of underground facilities

Hydro Excavation - Houston Location

Fri, 12 Mar 2010 01:45:46 GMT

Remote work being performed inside an oil and gas refeinery.

remote work- industrial setting

Fri, 12 Mar 2010 01:45:46 GMT

Remote work done inside an industrial plant

Remote work within a building

Fri, 12 Mar 2010 01:45:46 GMT

At this job in Oklahoma City, Oklahoma we were hired by our client to vacuum up filter media in the industrial facility. It was about 100' remote work and the non-hazardous debris had to be manifested and disposed of properly. This job was covered out of our Dallas office.

Unit 120

Fri, 12 Mar 2010 01:45:46 GMT

File uploaded by Karl Lassberg.

Unit 120

Fri, 12 Mar 2010 01:45:46 GMT

File uploaded by Karl Lassberg.

Unit 120

Fri, 12 Mar 2010 01:45:46 GMT

File uploaded by Karl Lassberg.

Unit 120

Fri, 12 Mar 2010 01:45:46 GMT

Not only does this truck have a 5000 CFM positive displacement blower and a hydraulic boom to to suck up the really thick mud, we have added a "sludge pump" to pump the oil based mud from oil rig cleaning out of the truck .

Big Red

Fri, 12 Mar 2010 01:45:46 GMT

This truck has a manual boom and a 5000 CFM blower. Since it has a manual boom (instead of hydraulic) we use it primarily for remote work where the boom is non essential.

MIDLAND TX 005

Fri, 12 Mar 2010 01:45:46 GMT

"Remote hose" was utilized on this section of trenching as we could not get our truck close enough for direct access. T-Rex can dig as far away as 500' from our trucks if necessary.

MIDLAND TX 003

Fri, 12 Mar 2010 01:45:46 GMT

File uploaded by Karl Lassberg.

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OPEC to add 2 million b/d to NGL capacity

NASCAR Nationwide Series: Entry List For O'Reilly Challenge at Texas Motor Speedway

The Original Young Gun to Turn Back the Clock at Texas Motor Speedway

Hydro Excavation Operator

Hydro excavation in Amarillo, Tx and Panhandle Region

Hydro Excavation - Houston,Texas and Surrounding Cities

Hydro Excavation - Dallas, Texas

Hydro Excavation - Shreveport, LA

Hydro Excavation - San Antonio & Austin, Tx

T-Rex Associations

Houston Contractors Association

Associated Builders and Contractors, Inc.

Greater Houston Chapter

IS Networld

HASC (Houston Area Safety Council)

Hydro Excavation- Beaumont/Port Arthur Texas

Cathodic Protection

Line Locating & Line Designating

Cost/Safety Advantages

Key Advantages

Hydro Excavation - Houston Location

remote work- industrial setting

Remote work within a building

Unit 120

Unit 120

Unit 120

Unit 120

Big Red

MIDLAND TX 005

MIDLAND TX 003