As the century-old oil and gas industry enters a new era of exploration and production, managers find they must change and adapt to new trends.
One of these trends, due to the abundance of oil and gas production from new unconventional plays, is encouraging a group of midstream operators to reverse pipeline flows to accommodate new markets. Many of those reversals will move hydrocarbons from the North to the South. While such flow reversals are today's new trend, they are not unprecedented.
In fact, three decades ago, we saw a similar type of flow reversal, but that of the human kind. In 1980 and '81, hundreds of people, this editor included, packed up our Fords, Buicks and Pontiacs to head south to find jobs and
careers in the southern states during a time of high unemployment in the North. Many of us found our way into the energy industry.
Being eager to do well and form life-long careers in what was seen as the land of milk and honey, where anything was possible, many workers brought their northern business experiences, processes and strategies to bear on their southern fellow employees.
Within six months of the start of the migration, Houston and Dallas locals saw huge numbers of cars bearing license plates from Ohio and Michigan. The Yankee-transplant trend was so prevalent, and the new workers so enthusiastic, locals began sporting bumper stickers that declared, "We don't care how you did it up north."
Fast forward to today, as workers from Texas and Oklahoma head to Pennsylvania, West Virginia and now Ohio. Like before, newly arrived workers are eager to share their project know-how, systems and technology. And once again, such enthusiasm is met with doubt and resistance. Many energy workers have become familiar with the phrase, "We don't care how you do it in Texas."
Yet, as the industry moves forward, much of the southern unconventional upstream drilling and technology is applicable to the northern states, and much of the midstream construction for pipelines and processing works. But not all of it. While it's clear that shale-development technology that began in the South is a boon to northern regions, it's also clear that southern-sourced workers are learning from the locals how to work in the North.
For example, we have learned that it is never, ever, ever too early to start the permitting process. We have learned that the process of laying pipe in the flat plains of Texas and Oklahoma does not fully prepare one for the challenges of the hills, valleys and stream-crossings of Pennsylvania. We have learned that it is probably not a good idea to plan to break ground on a new northern construction project in late fall. We have learned that, in the absence of pipelines, trains will work. And we have learned how to find, recruit and train much-needed local employees.
The shifting flow of people, capital, knowledge and technology keeps the industry lively and flexible, allowing it to adjust with changing environments. While much has been learned to date, more challenges lie ahead, but solutions are within sight. For now, let's enjoy the challenges, the changes and the boom times again, because one day we will be back to business as usual, and we'll look back on these times of wide-open opportunities and the accompanying chaos with fondness.
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