We announced a new Chief Operating Officer this week. Wendy Smith, with over thirty years’ experience in plant operations and design and engineering services management, is excited to take on the challenge.
Gas Technologies LLC. located in Walloon Lake, MI. has an NGL production facility set up in North Dakota and they are producing NGLs. Present production is at the rate of 600 mscfd. They anticipate a ramp-up of this rate by year-end and will shortly set up an adjacent Mini-GTL plant at the North Dakota site. Their goal is to change the world of gas flaring by making a huge reduction in the amount of gas flared.
Figure 1 Courtesy KPMG
A large segment of Optimation’s engineering, consulting, and fabrication business is for companies that provide services to firms conducting energy exploration, especially oil and natural gas. While we provide some programming and engineering work for the "energy" companies themselves, an even greater volume of work comes from the firms that fabricate, test, and deploy downhole tools, subsea instruments, and land-based exploration products.
The oil and gas market took a huge hit and went under some significant changes in the past two years. There were many factors which caused this to happen, including decreased demand and increases in the supply. There are new sources of supply including fracked natural gas which is converted to liquid chemicals or fuels. Others are working on cost effective processes to convert coal to gas. Their goal is to deliver gas to drivers cheaper and much cleaner than traditional oil to gasoline conversion methods. As the oil industry rebounds the playing field will never be the same as it was in the past. The winners and losers in the changed landscape are yet to be determined but it is clear that the landscape is changing.
A significant portion of Optimation's business over the past 10 years has come from the world's energy economy. The oil and gas industries in particular were a tremendous catalyst in our company's growth, and accounted for a large percentage of our total revenues especially the period from 2010 to 2015.