Monthly Archives: May 2015

“Peak Oil” and SWD Operation

Introduction

Crude oil is an unique energy source in today’s world —more or less cheap, more or less plentiful, and easy to transport. It is much denser in its energy content than any other common fuel; more BTUs per pound than wood, battery power, coal, or natural gas. The second half of the Industrial Age has depended upon oil. Wars have been fought over oil. The global economy has thrived and fallen on hiccups in oil statistics. The past 10 months have featured a raft of complex and conflicting crude oil developments portending profound but unclear changes to the industry and specifically to the oil and gas waste disposal sector. It appears that the global effects of stumbling into Peak-Oil are here. The industry is… Continue reading

Greenfield Projects versus Operating Wells as Acquisition Targets

Introduction


The Salt Water Disposal Institute (SWDI) fills many niches in the oil and gas business. We educate, locate, lease, permit, drill, design, construct, and operate new SWDs as well as broker new and existing properties. We have continuing activity from North Dakota to South Texas. In our experience, most investors want to acquire an operating SWD with a lengthy track record and balance sheet but these existing sites are few and can have their own risks both operating and marketing. An operating well may have hidden mechanical issues with surface equipment or with the bore-hole. For example a well-bore that will not pass a Mechanical Integrity Test (MIT) may be due to any number of problems, some of which are very expensive to repair.… Continue reading