Diversified Energy Co.ÃÛ·èÖ±²¥™s natural gas production supplies energy to dozens of domestic customersÃÛ·èÖ±²¥”and even international marketsÃÛ·èÖ±²¥”which officials say has a significant impact on the state of West Virginia.
Darren Gibbs, DECÃÛ·èÖ±²¥™s vice president of marketing, said that once the gas is extracted, it is transported via midstream pipeline from the well to the sales market, whether to interstate or local end users.
ÃÛ·èÖ±²¥œWe have dozens of commercial and industrial users in the state of West Virginia that get gas directly from us,ÃÛ·èÖ±²¥ Gibbs said. ÃÛ·èÖ±²¥œThese consumers in West Virginia include local distribution companies that deliver to homes and small businesses.ÃÛ·èÖ±²¥
Gibbs said having a company with a footprint the size of sourcing a vital commodity entirely within the United States is critical for national security and energy independence.
ÃÛ·èÖ±²¥œIf you think about the Industrial Revolution, all production, technology and innovation requires energy,ÃÛ·èÖ±²¥ Gibbs said. ÃÛ·èÖ±²¥œProducing it within the United States is important to not rely on anyone else, and we have abundant supply in the Appalachian area.ÃÛ·èÖ±²¥
Ron Ridgway, West Virginia native and DECÃÛ·èÖ±²¥™s executive vice president for energy marketing, shared that sentiment.
ÃÛ·èÖ±²¥œNatural gas is an abundant and affordable fuel that provides the United States unique advantages,ÃÛ·èÖ±²¥ Ridgway said. ÃÛ·èÖ±²¥œWhen I think about those advantages, I think about economic growth and reducing emissions. Electricity used to be produced by coal, and thatÃÛ·èÖ±²¥™s being replaced by natural gas. Those advantages translate to supporting jobs and the economy, as well as improving air quality.
ÃÛ·èÖ±²¥œNot being reliant on other countries is also important. When we found out about the Utica Shale and the Marcellus Shale in 2010, production in the West Virginia and Appalachian region went from 3 or 4 (billion cubic feet) a day to almost 35 or 36 BCF a day. Across the United States, (companies are) producing between 104 and 107 BCF, and when you think about that, 36 BCF is coming from the Appalachian region, which is big.ÃÛ·èÖ±²¥
In addition to supporting U.S. customers, DEC has a liquefied natural gas (LNG) agreement that sends gas to a Gulf Coast facility, where it is liquefied and shipped overseas.
ÃÛ·èÖ±²¥œOne of our goals was to be a leading name in the oil and gas field,ÃÛ·èÖ±²¥ Ridgway said. ÃÛ·èÖ±²¥œWe plan on sending more volumes to LNG facilities that supply markets all over the world.
ÃÛ·èÖ±²¥œThink of the countries that have reliable access to energy. TheyÃÛ·èÖ±²¥™re further up the scale as it relates to salaries and quality of life. ThereÃÛ·èÖ±²¥™s 4 billion people that live below the modern energy minimum, and people talk about how access to energy drives human development and quality of life. There are folks misinformed about natural gas and how it works, but without it, there are a lot of things you wouldnÃÛ·èÖ±²¥™t be able to touch or use. Over 6,000 products we use every day are manufactured using natural gas, but a lot of people donÃÛ·èÖ±²¥™t think about it that way.ÃÛ·èÖ±²¥
DECÃÛ·èÖ±²¥™s natural gas production comes primarily from existing wells the company has acquired, rather than new wells it drillsÃÛ·èÖ±²¥”something Ridgway said has its own positive impact on the region.
ÃÛ·èÖ±²¥œAfter a well is drilled, production volume declines to a rate that larger companies find a hassle, and thatÃÛ·èÖ±²¥™s where weÃÛ·èÖ±²¥™re unique,ÃÛ·èÖ±²¥ Ridgway said. ÃÛ·èÖ±²¥œWe step in and acquire these wells to deploy our Smarter Asset Management program, where we operate the wells more efficiently and increase their production. ItÃÛ·èÖ±²¥™s a significant benefit for the state because we manage these wells responsibly.ÃÛ·èÖ±²¥
Gibbs said DEC considers itself an environmental steward of the wells it acquires, taking pride in maintaining the wells to prevent methane leaks.
ÃÛ·èÖ±²¥œWe have teams in the field monitoring the wells every day,ÃÛ·èÖ±²¥ Gibbs said. ÃÛ·èÖ±²¥œWe have LIDAR flying over and looking for leaks. ItÃÛ·èÖ±²¥™s very important for us that we operate these wells and pipelines in a safe and responsible way. West VirginianÃÛ·èÖ±²¥™s live here and our families grow up here, and weÃÛ·èÖ±²¥™re part of the community. WeÃÛ·èÖ±²¥™re taking care of our assets with extreme ownership and accountability. ItÃÛ·èÖ±²¥™s an important theme within the company.ÃÛ·èÖ±²¥
Ridgway said Diversified produces more gas in West Virginia than in any other state in its footprint. He emphasized the importance of employing hundreds of West Virginia-based workers and keeping them engaged in their communities.
ÃÛ·èÖ±²¥œWe take a lot of pride in our jobs when weÃÛ·èÖ±²¥™re on the ground in West Virginia,ÃÛ·èÖ±²¥ Ridgway said. ÃÛ·èÖ±²¥œWeÃÛ·èÖ±²¥™re taking care of the state of West Virginia. WeÃÛ·èÖ±²¥™re very proud to call the state our home, and itÃÛ·èÖ±²¥™s important to keep jobs here with the business we have.ÃÛ·èÖ±²¥
