Rapid changes in the way energy companies search for and recover oil and natural gas have led service providers to adjust how they do business.
Oklahoma City-based Compressco Partners LP said Wednesday it has purchased 18 next-generation pumps to help it better meet the new demands of the growing oil and natural gas industry.
The new pumps are designed to help Compressco service large, horizontal wells searching for oil.
“There's a lot of horizontal drilling going on. There's a demand for gaslift compression,” CEO Ronald Foster said. “That market space is adjacent to our production and enhancement space, which we are in with our GasJack business.”
Foster declined to say how much the company spent on the equipment, but said that information will be included in the company's quarterly filings.
Compressco provides and operates pumps that help companies move oil and natural gas to the surface from the bottom of a well.
Compressco's primary product, the GasJack, is designed to increase production of older, dry natural gas wells. Over the past five years, the industry has quickly moved toward pricier oil and away from natural gas.
The company's new SuperJacks are designed to help both oil producers and the environment.
When producers recover oil, natural gas is mixed with it. Historically, producers have vented that mixed gas out of storage tanks and into the atmosphere. New environmental regulations over the past several years have blocked the practice.
Compressco's SuperJacks help companies comply with those new rules by capturing the waste natural gas and allowing producers to use it and sell it.