Paper: Malcolm Smith, Xtend Energy, LP, Jim Uhelski, Pioneer Natural Resources

Rising oil and gas prices mean more revenue for Texas producers, but they also cause electricity costs to increase. Because electricity is one of the highest costs most producers face, managing electricity costs can significantly reduce LOE. This paper will focus on the primary mechanisms producers can employ to mitigate electricity costs including procurement options, interruptible power programs and enabling technologies. The paper will compare what one producer could have paid for electricity over the last year to what it actually paid.