All posts by TWPswprocesscntrls

Southwest Process Controls to Attend OTC Tradeshow

Southwest Process Controls is excited to announce that we’ll be exhibiting with Hy-Lok USA at the 2017 Offshore Technology Conference (OTC), held May 1st – 4th at NRG Park in Houston. The biggest energy show in the world, OTC provides a valuable arena for energy professionals to network, view new technologies, and attend various educational seminars on offshore resources and environmental issues. Featuring more than 2,300 exhibitors, this exciting event draws industry leaders from 100 countries.

Training, Networking & Sessions

Various training courses, technical sessions, luncheons, and networking events will be held, with topics ranging from safety and risk management to the digital revolution. Universities will also showcase their offshore technology research and development (R&D) projects, and emerging energy companies will highlight their work. Special event topics include “Building Tomorrow’s Leaders in Oil and Gas: Strategies and Ideas to Excel in the Present Day Climate” and “Networking in the Downturn.”

Training courses will cover a wide range of offshore energy topics, such as fracpacking for sand control, seismic interpretation in deep water basins, and sustainability. These forums will provide valuable insight into new innovations and strategies to adapt to today’s changing landscape, with increased focused on renewability and sustainability.

Southwest & Hy-Lok Showcase

Southwest will be showcasing our Hy-Lok fluid system control products, including valves, tube fittings, quick connects, ball and plug valves, needle valves, check and relief valves, and manifold and gauge root valves, as well as cryogenic components. These high-quality products provide reliable, long-lasting service for offshore equipment of all kinds.

More on Southwest Process Controls

We’ve been proudly serving the oil and gas industry for over 15 years, supplying companies with only the best products from our trusted partners. Committed to constant improvement and innovation, we understand the importance of staying on top of industry trends and invite you to follow us on Twitter, LinkedIn, and our blog to stay up to date on important news and events.

Southwest Process Controls to Attend Dug Permian Basin & PBOG Conference and Expo

The team at Southwest Process Controls is pleased to announce that we’ll be attending two trade shows this April: the Permian Basin Oil & Gas Conference and Expo and the Dug Permian Basin.

First – the Dug Permian Basin, held in Fort Worth, Texas is April 3rd through the 5th. This conference explores what tactics are working for West Texas oil producers, servicers, and supply companies. Key content that will be discussed includes driving efficiency in exploration and production, the latest results and projections, resourceful technologies, and fiscal discipline. We will be attending alongside Hy-Lok.

Next, this year’s Permian Basin Oil & Gas (PBOG) Conference and Expo is from Wednesday, April 12th to Thursday, April 13th. Held at the Midland Horseshoe Pavilion in Midland, Texas, this exciting event brings together oil and gas industry leaders from across the country, allowing companies to network, browse the extensive trade show, and view the latest innovations and technologies.

With free attendance for industry professionals, the PBOG Conference and Expo provides an arena for businesses to demonstrate new products and services while attending educational talks and classes. This year’s educational topics will include environmental sustainability, leak detection, business ethics, and hiring and staffing best practices.

At Booth 306, we will again be showcasing our extensive line of Hy-Lok products, which includes high-pressure fittings, ball valves, quick connects, and needle valves. Since 2002, Southwest Process Controls has been an industry-leading supplier of high-quality fluid system control products for the oil and gas, petroleum, and petrochemical industries. In addition to instrumentation valves and fittings, we also carry tubing, gauges, regulators, and filters. Our team members will be on hand at the conference to answer any questions you may have about our product line and discuss options for your next oil and gas project.

In addition to free attendance, conference attendees will also have the chance to enjoy a networking mixer on the first night of the expo, with appetizers, drinks, and live music. We hope to see you there!

To keep up with our upcoming events and stay abreast of industry news, visit our blog regularly, and follow us on Twitter and LinkedIn.

New Opportunities in Oil: What’s Happening in Eagle Ford?

Late last year, we spent some time discussing the Permian Basin in Texas — specifically the Delaware Basin and the incredible rebound in oil and natural gas production it’s seen over the past few years. This month, we’re digging into the Eagle Ford Shale, the South Texas sibling of West Texas’ Permian.


Formation of the Eagle Ford Shale

Like the Permian Basin — which covers around 75,000 square miles of southeast New Mexico and western Texas — the Eagle Ford Shale was once submerged in the Tobosa Basin, the sea between the Laurasia and Gondwana supercontinents.

As the continents neared each other and the land rose, the area of the Permian remained submerged, thanks to the Hovey Channel, which kept the area connected to the ocean. As the Permian formed around 300 and 250 million years ago, the area that would become the Eagle Ford was still high and dry. It wasn’t until 153 million years later that the Eagle Ford Shale would begin to form.

Why the Recent Rebound?

The Eagle Ford Shale has a unique history, much different than that of its neighboring Permian basins. Those basins, the Delaware Basin, in particular, were impacted by three primary factors: availability, economic policy, and technology.

The United States’ embargo on Arab oil in the 1970s and corresponding crude oil export ban led to a considerable surplus of oil and a drop in crude prices — an inhospitable environment for large drilling operations. More recently, slowly rising oil costs, Congress’ 2015 vote to end the export ban, and advancements in horizontal drilling technology have led to a significant boom in Delaware Basin drilling, particularly for deposits that were unreachable until recently.

In the Eagle Ford, the situation has been somewhat reversed. In 2010, when drilling in the Permian was way down, the Eagle Ford Shale was among the most active drill sites in the United States. And as drilling in the Permian rose, drilling in the Eagle Ford slowed; by the last quarter of last year, there were 25 active Eagle Ford drilling operations.

Land, Oil, & Economics

Economics are the main cause of this contrast. The horizontal drilling opportunities present in the Permian are absent in the Eagle Ford. The ability of a single Permian well to tap multiple oil or gas formations reduces the break-even point for drilling to $30/bbl or less, while the Eagle Ford break-even, due to its lack of horizontally accessible formations, remains at about $50/bbl.

Land leases and production obligations also play a part. Eagle Shale drillers are operating the fewest number of drills required in order to maintain drilling obligations, allowing them to retain their leases and preventing other organizations from taking their own leases and starting wells. Simply put, drillers in this area are sitting tight on their Eagle Ford Shale assets while actively pursuing Permian Basin assets, which, at this moment, are more profitable.

This trend is already starting to reverse, however. While Delaware Basin drilling in the Permian remains strong, more wells are being reactivated in the Eagle Ford Shale. From its low point in fall of last year, the number of active Eagle Ford wells has increased by over 100%. While slow, with only a small handful of rigs coming online every week, the trend is distinct and holding steady.

A major driver of this rebound in the Eagle Ford is also a driver of the Permian rebound: the ever-present threat of peak oil. Though estimates of when we will hit peak oil vary tremendously, it is becoming increasingly clear that we’ll peak sometime in the next generation or two. The inevitability of peak oil — as well as constantly increasing pressure to move toward environmentally friendly and renewable energy sources — drives both an increase in oil drilling and an increase in natural gas drilling.

Southwest Process Controls

Southwest Process Controls, having maintained a presence in the petrochemical industries for 15 years, is committed to following and analyzing shifting trends in the oil and natural gas drilling fields. To keep on top of these trends and stay up to date on relevant industry news, visit our blog regularly and/or follow us on Twitter and LinkedIn.

2017 at Southwest Process Controls

In our 2016 recap, we gave you the lowdown on our company and its place in the constantly changing oil and gas industry. Now, with the New Year upon us, we’re looking ahead to what 2017 will hold for Southwest Process Controls.

Looking Forward as 2017 Begins

The start of a brand new year and business cycle holds an opportunity to reflect on past accomplishments and set new goals and objectives while continuing to do what worked well last year.

As always, our company aim is to provide customers with excellence in both quality fluid system control products and customer service. Our vast inventory includes tube fittings, tubing, pipe fittings, ball and plug valves, gauges, hoses, clamps, and more. They come in a range of configurations, sizes, and materials, dependent upon your needs.

The Southwest Process Controls team also will maintain presence at conferences for the oil and gas, petroleum, and petrochemical industries. These live events provide a great way to build business connections, learn industry trends, and discover the latest technologies – all of which benefit the products and service we provide to you.

Keep an Eye Out for what is to Come

The year ahead promises to bring new business opportunities, making for a proactive 2017. The New Year is reason enough for us to highlight our everyday resolution: to ensure our commitment to provide the best customer service possible. Our mission is for industry members to seek us as their top-performing vendor for fluid system control products we provide within the field and growing range of businesses.

As developments unfold during the year, here at Southwest Process Controls and throughout our related industries, we will keep you abreast of the latest information and resulting benefits for our client base. Follow us on both Twitter and LinkedIn for those updates and may 2017 be bright and prosperous for each and every one of you!

Diving Back Through 2016

As we look back over the past 12 months, the year was full of ups and downs in the oil and gas industry and the global markets. For us, business was brisk as our products support a wide range of processes and applications. We’ve used our blog to share with you important topics and look forward to sharing the year’s highlights.

Since the oil and gas industry is subject to internal and external forces, we shared with you the latest industry concerns, trends, and updates. The industry is complicated. As a commodity crude oil is complex and understanding how the markets set oil prices is an important factor. Differentiating Crude Prices: Brent and WTI, The Future of a Benchmark, and The Economic Effects of Falling Oil Prices explain the variables. The crude industry also struggles with storing and delivering crude oil. This capacity and storage issue is ongoing.

Because of the volatility in the oil markets, many of the oil producing regions of the country saw a shift in production throughout the year. In response, we kept you up-to-date on the workings at Eagle Ford, the Permian Basin, and the Delaware Basin. Global concerns also affect the industry and just as we were starting to see a recovery and rise in prices, the UK voted to leave the EU. This was the topic of our July blog and it remains to be seen if Brexit has lasting effect on global oil prices.

Highlighting the potential of environmentally friendly compressed natural gas was coincided with April’s celebration of Earth Day. And as of recent, reviewing the petrochemical industry helped us to expand on an integral part of the petroleum industry.

We’d like to thank all of you for a very successful 2016 and are looking forward to continuing to serve you in 2017. From all of us at Southwest Process Control, we wish you Happy Holidays and a Healthy New Year!

Interested in learning more? Follow the Southwest Process Controls’ team on Twitter and LinkedIn!

New Opportunities in Oil: The Delaware Basin Bounces Back

The Mid-Continent oil field — stretching from northern Kansas, just shy of Nebraska, south to the bottom of Texas, and from New Mexico to as far east as Arkansas, Louisiana, and Mississippi — was the world’s known largest oil reserve prior to the discovery of Middle Eastern oil.

A complex network of hundreds of fields and pools, the Mid-Continent oil field was first tapped into in 1892 by the famous Norman No. 1 well, spurring the American oil boom of the early 20th century. By the 1950s, much of the Mid-Continent oil field had been depleted.

Formation of the Permian Basin

However, one section of this field, the Permian Basin — named for the Permian geologic time period, 299 million to 251 million years ago — has not only remained productive but has even seen an increase in drilling activity in recent years.

The Permian Basin was originally submerged, part of the marine Tobosa Basin separating the supercontinents Laurasia and Gondwana. Over many years, deposited sediments formed a depression here. Around 323 to 299 million years ago, when the supercontinents Laurasia and Gondwana collided, forming Pangea, faulting and erosion resulted in various sub-basins. As sediment filled these sub-basins, the Permian Basin slowly took shape.

Today the Permian Basin extends across roughly 75,000 square miles of southeastern New Mexico and western Texas. It is made up of three main basins: the Delaware, Midland, and Central basins.

Thanks to the Hovey Channel, which supplied seawater to the Delaware Basin, the Delaware remained submerged well into the Guadalupian period, unlike the Midland Basin, which had been almost completely filled with sediment by the middle of Permian period. As a consequence, the Delaware is deeper and, over the epochs, was able to accumulate more algal, coral, and zooplankton organic material — the foundation of crude oil.

Why the Rebound?

Despite an overall depletion of the Mid-Continent oil field, there has been a notable increase in drilling activity in the Permian over the past 5-10 years, particularly in the Delaware Basin. But why the upsurge and why now? The answer lays in three interconnected factors — technology, economic policy, and availability.

While technologies for slanted and horizontal drilling — directional drilling methods that allow access to previously difficult or impossible-to-reach reservoirs — have existed since the 1930s, they weren’t very reliable or cost effective until the 1970s.

The 1970s, of course, also saw the Arab oil embargo shake the U.S. economy, leading to the crude oil export ban. Intended to reduce the country’s dependence on foreign oil, the ban lead to a glut of domestic crude oil saturating a market of limited demand, leading to great drops in crude prices and subsequent reductions in drilling and extraction.

In mid-December of 2015, Congress voted to end the ban on exporting crude oil. This, plus the availability of new, sophisticated horizontal drilling technologies, is driving the resurgence of Permian Basin drilling. Besides newly opened markets and the ability to reach previously untapped, difficult-to-access reserves, the prospect of peak oil is also increasing drilling in the area.

While experts’ opinions vary on the exact timing of peak oil, it’s now widely accepted that oil production will decline by 2050, leading to a decline in extraction and production. As peak oil nears, there has been a corresponding increase in drilling for natural gas, which is still found in relative abundance in the Permian’s Delaware Basin.

Southwest Process Controls is committed to staying up-to-date on current events and news within the petrochemical and oil and gas industries. To stay informed on factors that may be affecting your business, visit our blog today.

Celebrate Manufacturing Day on October 7

Mark your calendars — Manufacturing Day is coming up on October 7. Celebrated annually on the first Friday of October, Manufacturing Day provides a time to review the past year’s successes while looking toward future goals, educating the public about exciting new projects, advances in the world of manufacturing, and most nmd-logo-oct-2016importantly, inspiring the next generation of manufacturers.

How You Can Get Involved

Across the country, various companies and organizations will be celebrating this day with educational forums and talks, factory tours, career fairs, virtual seminars, and young-people’s events. This is a great chance for the public to learn more about the innovations happening in manufacturing and get a better idea of how the industry is progressing, the challenges it faces, and the advances being made toward increased diversity within the field.

Many events will be focused on the importance of STEM education — science, technology, engineering, and mathematics — and how to inspire and motivate children to get involved in the exciting world of manufacturing.

STEM Education: Why We Need It

An applied STEM education plays a vital part in ensuring that today’s youth are equipped with the tools they need to succeed in our constantly evolving world.

The next generation will be facing a unique set of challenges, including dealing with global warming, caring for an increasingly older population, and developing clean energy methods. In all of these fields, not to mention the everyday tasks we all face — managing our personal finances, for instance — a solid STEM education is paramount.

Some of the fastest-growing occupations, too, involve STEM, such as biophysics, skin care, personal and home care aid, and data communication analysis, to name a few. In order for the next generation — and our society in general — to stay ahead of the curve in manufacturing, all young people must receive an integrated, hands-on STEM education that captures their imagination and drives them to succeed.

Learn More

Every day, we at Southwest Process Controls are reminded of how lucky we are to be a part of the dynamic, exciting manufacturing community, and we hope everyone has an educational, inspiring Manufacturing Day.

As a leading supplier of high-quality fluid system control products since 2002, we’re truly committed to quality and innovation and look forward to welcoming the next generation of manufacturing professionals to our team. We invite you to learn more about our offerings on our website.

Coming Up Next

Don’t forget that the Permian Basin International Oil Show is October 18th-20th, 2016. The non-profit convention, held every other year, will be in all seven buildings of the Ector Count Coliseum Complex, with outdoor space being used too! Come stop by booths D-62 and D-63 in building D, as we will be bringing our Hy-Lok offerings to the conference.

Southwest Process Controls at Trade Shows

Southwest Process Controls is one of the largest suppliers and distributors of fluid system control products — tubing and hoses, pipes and pipe fittings, valves, and more — in the United States.

Headquartered in Houston, TX, the Oil Capital of the World, it is only fitting that many of our products find heavy use in the oil and gas, petrochemical, and refining industries. Particularly well suited to the challenging environments of these industries are Hy-Lok fittings, valves, and connectors, among the highest-quality, cost-effective, and customizable, fluid management products available.

As their sole licensed distributor in the Texas region, our Southwest team will be featuring Hy-Lok products at two upcoming oil and gas trade shows this autumn: the Roseland Oil and Gas — Houston Oil & Gas Expo and the Permian Basin International Oil Show.

Roseland Houston

Roseland Oil and Gas is holding their annual Houston Oil & Gas Expo on Tuesday, September 13 and Wednesday, September 14 at the George R. Brown Convention Center, located at 1001 Avenida De Las Americas in our hometown of Houston.

At the Houston Oil & Gas Expo, you will find Southwest Process Controls and our Hy-Lok products at booth 403. Stop by to view Hy-Lok’s high-quality fittings, valves, and specialty high-pressure fittings and valves. Among other things, autoCAD drawings and third party test results will be available. Come by and discuss your needs with our team in person!

Permian Basin

Later in the year, from Tuesday, October 18 to Thursday, October 20, Southwest Process Controls will be bringing our Hy-Lok offerings west to Odessa, TX for the Permian Basin International Oil Show. The Show is a non-profit convention held every other year on even-numbered years.

This year, the Permian Basin International Oil Show will occupy all seven buildings of the Ector County Coliseum Complex, as well all available outdoor space. Southwest Process Control will be at Booths D-62 and D-63 in Building D.

Come See Us

Southwest Process Controls will have highly knowledgeable staff on hand at both the Roseland Oil and Gas — Houston Oil & Gas Expo and Permian Basin International Oil Show trade shows for the full duration of each event this year.

Come on by — we’ll be happy to answer all of your questions and show you an impressive range of Hy-Lok products. You are also welcome to contact us at any time.


Catching Up with the Petrochemical Industry

While heating oil, automobile fuel, and compressed gas may own a bigger share of the spotlight, the petrochemical sector remains an integral part of the petroleum industry. Refineries fabricate petrochemicals at extreme pressures and temperatures to create compounds that serve as a cornerstone for virtually innumerable products.

Oil, natural gas, coal, and other sources are the primary raw materials for petrochemicals, creating building block compounds that include Benzene, Butadiene, Ethylene, Propylene, Toluene, and Xylene. Final products from these chemicals include plastics, solvents, soaps, paints, drugs, flooring materials, electronic equipment, and many others.

Weathering the Storm

With a list of output like this, the continued success of the petrochemical industry would seem inevitable. And yet, petrochemical processing relies on the continued extraction and refinement of petroleum, an industry that has been taking a beating these days by a glut in supply and low prices.

The industry continues to move forward, however. In a meeting earlier this year, petrochemical officials expressed cautious optimism. Leaders from Phillips 66 and Total (based in Paris) stated that they were looking to expand their investments in petrochemical refineries in Texas and the Middle East, foreseeing the ultimate expansion of the petrochemical industry in spite of current difficulties in oil refining.

How Has the Industry Fared?

While not undergoing a boom, petrochemical production continues to give investors many reasons to be optimistic. The month of May saw gains in the entire U.S. chemical industry nudging upwards; what’s more, the abundant supply of natural gas from America’s shale rock deposits has created a cost-advantage for domestic producers, as well as opportunities for an increased export market.

The good news doesn’t stop there. Recent industry research has projected that the global natural gas liquids market is likely to double within the next eight years — due in part to the use of Ethane in worldwide petrochemical applications.  Petrochemical refining plants in Texas will not be left out, as North America is currently second only to the Middle East for market share in natural gas.

Follow Our Blog

Current signs seem positive for the petrochemical sector, but long-term success remains uncertain. At Southwest Process Controls, we will continue reporting on changes in the industry as we encounter them. Keep checking in with our blog for details on the latest trends; or, for questions about our high-quality fittings, locks, gauges, and valves, contact us directly.

Recovery Interrupted: Brexit and Its Effect on Oil Prices

As spring began to blossom this year, the petroleum industry was finally starting to see some good news. Near record-low oil prices, caused in part by the U.S. shale oil boom and subsequent glut, were slowly starting to rise again. A recovery that many predicted would not begin until at least 2017 was showing signs of life, allowing optimism for a more robust future to loom on the horizon.

In June, the Wall Street Journal reported that oil had risen to $49.37 per barrel in the New York Mercantile Exchange and $50.65 per barrel in the Brent ICE Futures Europe Index — an impressive recovery, considering that recent predictions originally foresaw oil bottoming out at $20 a barrel. Of course, in the volatile oil industry, a continued recovery is never a sure thing, and one important bellwether remained — the upcoming vote in the United Kingdom on whether or not to stay in in the EU.

A Quick Downward Path

The outcome was not what many industry leaders had hoped for. In spite of late polls showing that a narrow majority favored remaining in the EU, Brexit won the day. The effect on crude prices was sharp and swift: as the pound plummeted to a 31 year low against the dollar, oil was down 2.66% on Brent and 2.88% on West Texas Intermediate. Indeed, part of the problem was the sudden overall strength of the U.S. dollar versus the pound: as the value of the dollar increases, oil trading is more expensive for other countries, reducing demand and causing subsequent price declines.

The other reason Brexit contributed to declining prices was the impact of widespread economic uncertainty. Investor confidence fell across the board, and oil industry leaders feared that other EU members might follow suit with their own independence bids, creating market volatility that could easily spread to the petroleum field.

Oil Prices Going Forward

Beyond the initial shock of the vote and its unsteadying effects on global markets, what will Brexit ultimately mean for oil prices?

Many experts believe that the answer is surprisingly little. Britain’s economy makes up less than 2% of the world’s demand for petroleum, and industry experts expect the UK’s consumption to decrease by only about 1%, which translates to 16,000 barrels per day. On a global scale, this would have a negligible effect on oil prices.

In addition, there are more important factors at play in future oil prices. Political and natural disruptions are forecast to cause scarcities in oil-rich countries such as Venezuela, Libya, and Nigeria; reductions in supplies from depleted wells are likely in Mexico, China, Brazil, Columbia, and other locales in the coming year. Given these conditions, certain industry experts are predicting a swift return to $50 a barrel prices and future increases as well — with some analysts seeing a $30 per barrel increase by this time in 2017.

The unexpected rise in oil prices and its subsequent drop after the Brexit vote demonstrate how volatile this market really is. At Southwest Process Controls, we are devoted to following the continuing trajectory of oil prices and its effect on our clients. Be sure to check our blog regularly for the petroleum industry trends and updates that affect your bottom line.