As many residents have experienced, we had an error on our utility billing to some customers. Utility customers who are on automatic draft received a delinquent notice for May and can disregard that notice. Due to an error in the billing process, late notices were sent out before the automatic draft payments were applied to utility accounts. We sincerely apologize for any inconvenience this may have caused, and we are taking steps to keep this from happening in the future.
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Another big oil and gas merger is in the works, this time on the midstream side. Last week, Crestwood announced its decision to acquire Sendero Midstream Partners. According to a press release, this will more than double its natural gas processing capabilities in the Delaware Basin, which is the leading North America shale area in terms of drilling rig activity. This $600 million transaction will take place over the next couple of months.
We just can’t say enough about Sendero, especially Clint Cone, who has been the local face of Sendero Midstream. Sendero has been involved in nearly everything in our community – especially with Chamber of Commerce projects, but also with the energy summit and other community events. Sendero has been a huge sponsor of the senior bus trips that began earlier this year. This involvement has gone beyond financial partnership – Sendero has also been directly involved in volunteer projects and community projects.
The good news is that Crestwood, who has headquarters in Houston, also has a great record of involvement in Carlsbad. We’ve worked very closely with Crestwood on a number of community projects, and the company had a speaker at our energy summit last year. We know Sendero and Crestwood will work out a partnership that serves this community well, and we look forward to working with them in the future.
Midstream companies handle a variety of responsibilities in the oilfield, sometimes including pipeline operations, transmission facilities, treatment and compression.
Crestwood certainly picked a great area for investment. A recent publication by Rystad Energy Research predicated that total hydrocarbon production in the Permian Delaware Basin would hit a record 5.7 million barrels of oil equivalent per day average in 2022. Total production is set to grow by around 990,000 barrels of oil equivalent per day, almost half of which is new oil production. Carlsbad remains at the epicenter of our nation’s domestic production.
Sincerely,
Carlsbad Mayor Dale Janway