Crude Acquisition at the Lease
UET has a robust and growing business in originating and purchasing crude oil at the lease and either gathering or trucking to export pipelines or rail terminals. This lease business compliments and is being integrated with UET’s extensive downstream transportation, logistics, and marketing activities. The end result of this already thriving lease business development will be a totally integrated crude oil midstream/downstream service in which lease barrels are supporting a full spectrum of options to move to the best markets, thus optimizing value for both our lease suppliers and UET’s own account.
The crude oil lease origination business is relationship-based, where trust and proven results over long periods of time between individual UET originators and producers comprise the backbone of our business. UET has hired the best and the brightest in this niche – originators with an average of over 20 years of purchasing crude oil from producers in the basins in which we operate. Our originators have a comprehensive understanding of producer issues such as flow assurance, net back sensitivity, and issues related to severance tax, royalty and working interest demands. These are often overlooked by most marketers new to the business, but are crucial to our customers.
UET is still developing and expanding its lease business footprint in the Mississippi Lime, Permian, Granite Wash, and Tuscaloosa Shale where in each case UET is moving minimal volumes as we further integrate the lease business with our downstream transportation and market assets.