Find Us

5 Headquarters

4545 Fuller Dr. Suite 412
Irving, TX 75038
Phone: (972) 445-9584
Toll Free: (855) 275-3483
Fax: (855) 329-3493 
email5@energyby5.com

5 - Northeast

865 State Route 33
Ste 3 PMB 1077
Freehold, NJ 07728
Phone: (732) 774-0005
Fax: (855) 329-3483
email5@energyby5.com

5 - Mexico

CP 11000, Miguel Hidalgo
CDMX, Mexico
Phone: +5595287982
mexico@energyby5.com

LEARN

Category: Clients Case Studies Procurement Demand Response Resiliency

Spotlight – Midstream Provider Implements Strategy for Uncertainty

February 17, 2021

Written By: 5

Midstream Provider

In 2020, a midstream oil services provider approached 5 to help manage the electricity for a new facility that was ramping up its operations in the Midland Basin. This new facility gathers and stores crude oil from various wellheads in West Texas and connects it to local refineries through its pumping stations. Most of the electricity at this midstream facility is used to power a series of 200 to 400 HP variable frequency drive motors that will deliver more than 100,000 barrels per day to several downstream delivery points. This client hired 5 to help in modeling the electricity usage as the facility went into operations and gradually increased its pumping capacity. The rapidly fluctuating demand for crude oil during the pandemic added to the complexity of forecasting and budgeting this facility’s energy costs and consumption.

5’s engineers and energy analysts worked with this client’s engineering team to understand and predict the operating the facility’s electricity load shape under a variety of operational scenarios. This analysis established the parameters for an electricity contract that accounted for the variables and unknowns associated with the overall economic demand for crude oil as well as the facility’s initial operating cycle.

After several months of operating history, 5 identified an opportunity to capitalize on the relatively flat usage profile of the crude oil pumps and shift the client’s usage to off-peak periods. Additionally, a load-following block contract structure was evaluated which provides a degree of budget certainty while also allowing for fluctuations in the amount of crude oil coming from wellheads in the Midland Basin. This is a prime example of why there is no one-size-fits-all energy contract, and some degree of customization is required when entering into an electricity or natural gas supply agreement.

Other Recent Posts

Featured Image

Support at 5

By 5
June 26, 2025

READ MORE >
Featured Image
2 min read

What Congress' Reconciliation Bill Means for Renewable Energy Incentives

By 5
June 25, 2025

The hottest topic in energy regulation is the President’s reconciliation bill. As passed by the House, the legislation effectively terminates the Investment Tax Credit (ITC) and Production Tax Credit ... READ MORE >
Featured Image
4 min read

How the Israel-Iran Conflict is Moving U.S. Energy Prices

By 5
June 25, 2025

During the overnight hours of June 12 and 13, Israel conducted the first of several air strikes against targets in Iran. Over the hours and days that followed, multiple counterattacks occurred, awaken... READ MORE >