Summit provides oil & gas marketing, operations support
Independent producers turn to Summit Energy for assistance in maintaining an edge in the ultra-competitive oil and gas producers market. Summit leverages its market intelligence to not only drive revenue, but also provides mission-critical services, such as gas marketing, scheduling, and nominating and balancing.
Independent Oil and Gas Exploration Firms Seek Lean Growth, Focused Operations and Strategic Partnerships: Independent energy exploration firms compete with multi-billion-dollar industry conglomerates by concentrating on their core business and remaining nimble enough to seize every opportunity. Their success depends upon identifying, developing and producing commercially viable oil and gas reserves. Some choose to rely on a trusted partner to handle essential but non-core business operations, such as gas marketing and scheduling.
An independent oil and gas exploration company focused on natural gas development in the Marcellus Shale is rapidly expanding its shale gas drilling and production program in West Virginia. Internal resources are focused on land acquisition, horizontal drilling operations and successful well completions. Like many independent producers, the Summit client operates lean without an internal marketing and gas operations staff to optimize gas sales agreements and manage the nominations and gas control functions. Summit provides gas marketing, scheduling, nominating and balancing services, and negotiates gathering and processing agreements allowing the client to focus on its core competencies.
Natural gas sales and transportation agreements can involve complex price structures and delivery terms. The oil and gas producer relies on Summit’s operational experience to optimize pricing and marketing alternatives, and minimize pipeline capacity constraints and potential interruptions that could impact the producer’s revenue stream.
Additionally, Summit brought five potential buyers to the table to bid for the client’s gas supply, ensuring the highest contract price and the most competitive contract terms. Firm pipeline capacity and balancing issues were also addressed in the negotiations.
The client’s two-year contract ensures its natural gas — and revenue — will keep flowing, even when pipeline capacity is constrained. Summit's nomination and balancing services have saved the independent oil and gas producer more than $35,000 at one well in the initial four months. Summit's support in the negotiation of the latest gathering and processing agreement will save the client $18,000 per month, or more than $2.1 million over the agreement term.