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Gary Johnson, founder and president of Red Stag Energy, which has designed the Gen. 5 L-POD system to clean off-spec oil.
Red Stag Energy has designed the Gen. 5 L-POD system to clean off-spec oil.
Red Stag Energy has designed the Gen. 5 L-POD system to clean off-spec oil.
Veteran oilman Gary Johnson has spent time in the oilfields of the Permian Basin. Now he’s coming back, and he’s bringing with him high-tech equipment to treat what’s known as “off-spec oil.”
“I was with centrifuges back in the day,” said Johnson, Tulsa-based president and owner of Red Stag Energy.
Now, he told the Reporter-Telegram by telephone, he is debuting the Gen. 5 L-POD system, a completely self-contained mobile unit mounted on a 53-foot trailer system for removing basic sediment and water, cleaning crude oil to pipeline specifications. Because it’s automated, he said all he has to do is program the computer to meet specific pipeline specifications and put the unit to work.
He has five units, which he is in the process of sending to Wyoming and North and South Dakota and is constructing a smaller unit that will head to Houston in the next 60 days. He hopes to interest Permian Basin operators in his technology.
“There’s a lot of off-spec oil in the Permian Basin,” he said.
The unit features a patented horizontal oil heater treater that can produce oil quality at or below 0.05% basic sediments and water, patented plate and frame ultra-efficient electro-static heat exchangers and dual LACT units to determine inlet and outlet crude oil quality.
Johnson said the units are capable of cleaning up 10,400 barrels a day, depending on the gravity of the oil.
“What we’re looking for is 3,000 to 4,000 barrels a day; that makes the unit feasible,” he said.
Cleaning the crude to pipeline specifications not only increases the supply of oil but increases the revenue stream, he said.
The units can be purchased by Red Stag clients or leased, and Red Stag staff will come onsite to operate the unit for a per-barrel fee.
“Some, in their capital expenditures don’t want to rent or lease anything,” he said. “Others prefer to lease. Whatever fits their business model."
Mella McEwen is the Oil Editor for the Midland Reporter-Telegram.