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Advertise your gas ______________________________________________________________ “spending hundreds and hundreds and hundreds of billions of dollars every year for oil, much of it from the Middle East, is just about the single stupidest thing that modern society could possibly do. It’s very difficult to think of anything more idiotic than that.” ~ R. James Woolsey, Jr., former
Director of the CIA
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Gas
Fractionation
www.GasFractionation.com
Gas Fractionation - The Leading Resource for the Gas Fractionation Industry
What
is "Gas
Fractionation"?
Gas Fractionation - also referred to as NGL Fractionation - is the gas processing technology that separates the mixed natural gas liquids stream into separated products. These natural gas liquids that are separated by heat at NGL Fractionation plants include; ethane, propane, normal butane, isobutane and natural gasoline.
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What is the "Midtream Oil and Gas" sector?
The "midstream oil and gas" sector receives the oil and natural gas from the upstream oil and natural gas sector and provides initial gas processing, terminalling and storage, and transports the oil and natural gas and natural gas liquids for further natural gas treating and desulfurization "downstream." The natural gas may be processed or treated in the midstream sector through gas processing or natural gas treating facilities for producing pipeline quality gas for direct sale to a interstate or intrastate natural gas pipeline, and may bypass the downstream oil and natural gas sector entirely.
The downstream sector usually refers to crude oil refineries and the selling and distribution of natural gas and products derived from crude oil. These products include Liquefied Petroleum Gas or "LPG," gasoline, jet fuel, diesel fuel, and other fuel oils, as well as asphalt and petroleum coke.
What
is "Upstream Oil and Gas"?
The oil and natural gas industry is divided into three major segments:
Upstream
Midstream
Downstream
The
Upstream Oil and Gas
segment is a term that refers to the searching,
drilling and production of crude oil and natural gas. The Upstream
Oil and Gas segment is also known as the "exploration and production"
or "E&P" segment.
The Upstream
Oil and Gas segment includes; exploring for potential underground
(or underwater) oil and natural gas fields (or reservoirs), drilling of exploratory wells, and
operating/producing the oil
and natural gas wells that "pay" with crude oil and/or
natural gas
What
are Master
Limited Partnerships?
Master Limited Partnership (MLPs) are limited partnerships that are publicly traded on a securities exchange.
MLPs
combine the tax benefits of Limited Partnerships with the liquidity and
protection/oversight of a publicly traded security.
Master Limited Partnerships are limited by regulation to apply to specific businesses - most notably - natural resources, including; oil and natural gas extraction and transportation.
To
qualify for MLP status, a partnership must generate at least 90 percent of its
income from "qualifying" sources/resources. For many Master Limited
Partnerships, this includes activities related to the production, processing or
transportation of oil, natural gas and coal.
Master
Limited Partnerships pay their investors through Quarterly Required
Distributions or QRDs. The amount of the QRDs is stated in the contract between
the Limited Partners (the investors) and the General Partner (the managers).
Failure of the General Partner to pay the quarterly required distributions
constitutes a default of the MLP Agreement.
Due
to the stringent provisions on Master Limited Partnerships and the QRD, the
majority of all Master Limited Partnerships are pipeline businesses, and natural
gas companies engaged in the "midstream" oil and natural gas sector,
which generated a reliable and steady income from the oil and natural gas
sector.
Because
MLPs are a partnership, there is no corporate income tax at either the state or
federal level. The Limited Partners (investors) are able to record a pro-rated
share of the investment in the Master Limited Partnership's depreciation on
their personal income tax filings which further reduces their (that year's) tax
liabilities. This is the primary benefit of Master Limited Partnerships and
provides MLPs relatively inexpensive funding and capital costs.
In
most new Master Limited Partnerships, the General Partner starts out with a
small stake or position in the company - typically in the 2% to 5% range.
However, the MLP receives "incentive distributions" from the net
income after the Quarterly Required Distributions. As the incentive
distributions are normally paid in the form of increased equity claims this
allows the General Partner to attain an increasingly greater percentage of
ownership in the company over time.
Support Domestic Oil and Gas Production!
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Gas Fractionation
www.GasFractionation.com
Gas Fractionation
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