Doggett Makes $30 Million in Acquisitions to Expand in the Eagle Ford

Expansion Expands the Company's Service Center Footprint in South Texas
Doggett Group Construction Equipment

Sample of Doggett Group’s Construction Equipment |Click to Enlarge

Doggett acquired truck dealerships in Laredo, McAllen, and San Antonio in December. The deals create a network of dealerships that span the region and expand the company’s influence in the South Texas Eagle Ford oil boom.

Doggett spent $30 million to acquire three Freightliner and one Western Star Trucking dealership.

Doggett Trucking Group acquired the dealerships from Opus Kane Truck Group and one from Eddy Vaughn Freightliner. [Read more…]

B/E Aerospace Acquires LT Energy Services & Wildcat Wireline for $265 Million

Expanding Into the Oilfield Equipment Rental, Logistics and Services Business
Halliburton Operated Wireline Truck

Halliburton Operated Wireline Truck |Click to Enlarge

B/E Aerospace describes itself as the “worldwide leading manufacturer of aircraft passenger cabin interior products…” and the company now can boast about its Eagle Ford equipment rental and wireline businesses in South Texas.

B/E acquired LT Energy Services, an equipment rental company, and Wildcat Wireline who is also active in the Eagle Ford. The company spent ~$265 million to acquire the two companies. [Read more…]

Corrosion Control in the Eagle Ford Shale

Corrosion control is always a factor in oilfield work.  Above-ground tanks, pipelines, and all manners of equipment suffer from corrosion, both internal and external in nature.  The farther south and west one moves across the Eagle Ford play, the more two interesting physical facts come to dominate external corrosion control needs.

Maverick, Dimmit, Zavala, Webb, La Salle, McMullen, Frio, Atascosa, Live Oak and Bee Counties have shallow soils which often contain large concentrations of chloride ion.  This comes from salt deposited when ancient ocean shorelines ranged across the region.  High chloride ion content causes aggressive corrosion rates on unprotected steel.  Just as importantly, the sodium and chloride ions, often found with other ions as well, cause the soil’s electrical resistivity to be very low.  The low electrical resistance means high corrosion current flows, which again accelerates attack on unprotected steel.  Pipelines are buried in this soil.  Tanks are set on it. [Read more…]

Equipment Delays – Margin Pressure in the Eagle Ford – Plains All American

Equipment delays in the Eagle Ford have slowed work on Plains All American’s pipeline project, but the development is still on schedule to be fully operational in Q1 2013. The pipeline will provide 300,000 b/d of takeaway capacity into the Corpus Christi refining markets and connect to marine transport options delivering to other Gulf Coast markets.

Plains All American also touched on the fact that pipeline and midstream company margins in the Eagle Ford will compress over time. At their estimates, pipeline capacity might double production expectations in the play. If that is the case, there will be downward pressure on margins. Unless production volumes continue to outpace expectations, that is a natural progression in midstream business cycle.

The company will also begin moving crude oil volumes away from trucking in favor of pipelines. Pipeline yield lower margins than many of the trucking and logistical arrangements in the play today. [Read more…]