May 17, 2020

Chevron Buys More Marcellus Shale

acres
bought
buy
Chevron
Admin
2 min
Chevron is getting serious about securing U.S. natural gas reserves, buying more Marcellus Shale land
In Q1 of 2011, Chevron Corp. acquired natural gas producer Atlas Energy in a move to expand into the U.S. natural gas arena. The acquisition saw Atlas...

 

In Q1 of 2011, Chevron Corp. acquired natural gas producer Atlas Energy in a move to expand into the U.S. natural gas arena. The acquisition saw Atlas turning over assets, including nearly half a million acres of Marcellus shale natural gas land, to Chevron. Now, in an effort to further secure shale reserves, Chevron has purchased drilling and development rights for another 228,000 acres of potentially gas-rich land.

The discovery of the Marcellus shale—an underground gas-rich rock formation that lies beneath the Northeastern U.S.—has caused a boom in the U.S. natural gas sector. Shale natural gas reserves offer new hope to spur the nation’s energy security, especially amidst an uncertain oil market. While environmental concerns over the rock fracturing process used to extract shale natural gas prevail, the U.S. is moving forward with infrastructure development efforts promoting natural gas for electricity production as well as an alternative transportation fuel. In fact, over the next few years, several compressed natural gas fueled cars and trucks will be introduced to the U.S. market.

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Analysts estimate Chevron’s purchase to be worth roughly $1.6 billion based on the estimated gas reserves involved. The land purchased is located in the U.S. state of Pennsylvania, which sits atop a large portion of the Marcellus shale formation.

"We are taking this step because the price is good and the assets are very complementary with the [Atlas] acquisition we made," says Chevron's president for North American exploration and production Gary Luquette.

Competitors ExxonMobil, Royal Dutch Shell and BP have all been laying claim to parts of the Marcellus shale formation as well. However, a lack of natural gas exportation infrastructure in the U.S. has caused the country’s domestic gas prices to decrease extensively, which may pose a risk for those companies actively looking to exploit shale reserves. Plus, the growing presence of opposition to shale fracturing has been emerging throughout the gas-rich region, citing water pollution as the primary hazard associated with shale gas exploration. In any case, it seems as though Chevron will be ideally positioned to tap shale reserves.

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Jul 13, 2021

Technology revolution for water retailers

Utilities
technology
IoT
digitaltransformation
Paul Williams
4 min
Paul Williams, Chief Technology Officer at Everflow Tech, reflects on privatisation, industry complexities and future for utilities in a digital world

In April 2017, the UK’s water retail market in the world opened for business – the single biggest change to the water sector since privatisation. This development allowed businesses, charities and public sector organisations to shop around for the best deal.
However, like any industry, this change hasn’t been without its sticking points; here, Paul Williams, CTO at Everflow Tech (pictured far right), discusses how retailers can harness technology to their advantage

Our CEO, Josh Gill, set up independent retailer Everflow Water in 2015, and Everflow Tech is his response to the difficulties it faced.

Quotations could take up to a week to produce, billing software had to be manually updated and brokers were unable to manage the complete customer journey in one place – all of which took time, cost money and allowed for human error.

The more complexity that was involved in billing or quoting, the more contact end customers needed to have with their retailers, pushing up the cost to serve for every SPID. This meant retailers – ourselves included – found themselves in a situation where profits were simply eaten up by service costs.

We also note that it can traditionally be hard for retailers to stay on top of balancing what they are charging their customers with what they are being charged by the market. To further exacerbate this, the longer a change goes unnoticed, the more trouble it can be to balance the issue.

It was these issues that Josh and his (at the time) small team wanted to ameliorate, creating their own technology in the absence of anything else.

This technology evolved into our award-winning retail sales, billing and customer management platform for the water retail market, and Everflow Tech was launched as a standalone venture in 2018, selling the software externally for other water retailers and their customers to benefit from.

What retailers want

As a relatively new entrant to the world of utilities competition, the water market could be seen to be lagging behind, particularly when it comes to innovation.

In fact, as recently as 2019, Ofwat said it expected the industry to be making technological advances and to be working with a culture of innovation, collaborating with companies both within and outside of the sector.

And with cost-savings for consumers traditionally lower than for other utilities, retailers need to be offering something more – whether that’s better support, energy-efficiency advice or more accurate data.

What’s more, consumers have had a taste of the power of technology, and they’ve come to expect nothing less from retailers across the board.

Another key issue – thrown into sharp relief during the past 12 months (and counting) of a pandemic – is rising levels of arrears, which are likely to increase bad debt beyond margins that retailers originally allowed for when the market was created.

In such a low-margin industry, there is a limit to the amount of debt retailers can take on, especially as recovering costs can be a very slow process. Ofwat has signalled that this issue could be addressed as early as this year, with a mechanism for recovering bad debt to be established during 2021/22. 

The market needs simple solutions to better serve the end user, and we were perfectly placed to develop those solutions. At Everflow, our software is designed for the water retail market, by the water retail market.

As well as simple billing, clear-to-understand workflows, and a revenue assurance system to allow retailers to quickly compare market charges, Everflow has also introduced a complete debt solution, allowing missed payment dates to drive late payment charges and escalations automatically.

Retailers are able to design and put out their own bill and quotes, tailoring customer journey and overall experience – whatever the circumstances.

What does the future hold?

Automation is key to any industry; we’re heading into an age of driverless cars and smart homes, and this drive for tech will filter through to our industry, and we need to catch up. 

The Internet of Things – a network of physical objects connected to each other – means human error (and effort) can effectively be removed from many everyday tasks, which goes for meter readings too. However, in the 21st century, the water market is still not leveraging previously emerged technology in the form of smart meters to provide accurate billing. 

Consumers are also becoming more empowered, both to ask for information and change their preferences if they don’t like what they learn. Retailers need to be armed with this information, not next week, not tomorrow, but now – and, at Everflow Tech, we’re putting that information at their fingertips.

But the retailers themselves need to speak up too, and we will always work with them to get the best ideas on what needs to be developed and when.

Our strong bond with Everflow Water, along with other key customers, means we have a direct interest in making sure our systems serve the water market in the best way they can. 

For us, the goal is to make sure retailers on our platform can grow as much as possible, leaving behind laborious daily processes to focus on their own strategic growth and, most importantly, helping their customers.

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