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Texas Oil Production Breaks New Record

OilPrice.com: By Tim Daiss - Feb 12, 2019, 3:00 PM CST The state of Texas now has even more bragging rights in the U.S. Oil Patch, and even globally According to a new report from the Texas Independent Producers Royalty Owners Association, the Lone Star state’s oil production hit a record level not seen since 1973, the same year of the Arab oil embargo that roiled global oil markets. Texas oil wells produced more than 1.54 billion barrels of crude in 2018, topping the previous record of 1.28 billion barrels set in 1973, TIPRO reported in its annual “State of Energy Report.” Natural gas production also grew, reaching 8.8 trillion cubic feet (tcf) last year. In 2017, Texas also came close to beating the 1973 oil output record, pumping 1.26 billion barrels of oil. To put Texas oil production in perspective, if it were a country, it would be the world’s third oil producer sometime this year, behind only Russia and Saudi Arabia, HSBC said in a report. The main engine of Texas oil output is the Permian basin that spans West Texas and southeastern New Mexico and is one of the most prolific oil and gas producing regions in the U.S. The Permian Basin is approximately 250 miles wide and 300 miles long, across West Texas and southeastern New Mexico. It encompasses several sub-basins, including the Delaware Basin and the Midland Basin. Read...

Drilling Down: Chevron to ramp up Permian Basin drilling projects

By Sergio Chapa, Houston Chronicle | Updated 12:21 pm CST, Monday, February 11, 2019 Oil giant Chevron is preparing for a large round of drilling in the Permian Basin of West Texas. The California oil company filed 12 drilling permit applications with the Railroad Commission for horizontal drilling and hydraulic fracturing projects on its DR State Wise Unit lease in Culberson County. Located off FM 652 between Guadalupe Mountains National Park and the town of Orla, all 12 drilling projects target the Ford West field of the Wolfcamp geological formation down to a depth of 9,000 feet. Chevron closed 2018 with a nearly $14.9 billion profit on $166.3 billion of revenue. The company attributes part of those profits to a production increase in the Permian Basin where it holds more than 2.2 million acres of leases. With a large presence in Houston, Chevron filed for 124 drilling permits in Texas last year. The company’s nearly 2,300 Texas leases produced nearly 28.9 million barrels of crude oil, more than 116.6 billion cubic feet of natural gas and nearly 5.4 million barrels of condensate during the first 11 months of 2018. Permian Basin The recently formed saltwater disposal operator Waterfield Midstream is getting down to business in the Permian. Waterfield is planning to develop five saltwater disposal wells spread throughout Martin County. The leases for the saltwater disposal wells are named after the Mediterranean islands of Sicily, Corsica, Elba, Capri and Corfu. All five injection wells target the Devonian geological layer at depths varying from 13,000 to 14,800 feet. Eagle Ford Shale Tulsa oil company Protégé Energy III is is preparing to drill three wells...

Meridian Energy Group, Inc. establishes Site Control for Permian Basin Refinery

Company will apply Lessons Learned in the Design and Permitting of its Bakken-area Davis Refinery for a Full-Conversion Crude Refinery Sited in Winkler County, Texas, the Heart of the Permian Basin February 11, 2019 09:00 ET | Source: Meridian Energy Group BELFIELD, N.D., Feb. 11, 2019 (GLOBE NEWSWIRE) — Meridian Energy Group, Inc., the emerging growth refining firm and leading innovator in advanced technology and environmentally-beneficial petroleum processing facilities, announced today that the Company has entered into agreement with a Winkler Company subsidiary (“Winkler”) establishing site control in Winkler County, Texas for a new Meridian full-conversion crude oil refinery. This new Meridian refinery will process local Permian (Delaware Basin) crude oil into a full slate of refined products for local and regional markets. Now that site control has been established, Meridian will proceed with design and permitting of this new crude oil refining facility.  Meridian Energy’s first refinery, being constructed in Billings County, North Dakota, is proving that advanced technology can be used to meet strict environmental controls to build and operate full-conversion petroleum processing facilities.  The Meridian facility in the Permian Basin will have a throughput capacity of approximately 60,000 bpd and will otherwise be modeled on the Company’s Billings County Davis Refinery, which is currently in construction. The Davis Refinery is a full-conversion greenfield refinery that was permitted for air quality purposes as a Synthetic Minor Source, demonstrating substantially lower emissions on a per barrel basis than the industry average. The Permian facility will also be permitted as a Synthetic Minor Source. The Davis Refinery is the first full-conversion crude refinery ever to be permitted as a Synthetic Minor Source, and Meridian believes...

Blackstone Energy Partners launches Permian Basin midstream platform Waterfield

February 5, 2019: By Iris Dorbian Blackstone Energy Partners has formed Waterfield Midstream, which has secured a $500 million equity commitment. Waterfield is a provider of water management services to producers in the Permian Basin. PRESS RELEASE THE WOODLANDS, Texas & NEW YORK–(BUSINESS WIRE)–Today, Blackstone (NYSE:BX) (“Blackstone”) announced that funds managed by Blackstone Energy Partners L.P. have formed Waterfield Midstream (“Waterfield”), a full-cycle provider of water management services, including water gathering, treatment, recycling and disposal, to provide solutions to producers in the Permian Basin. Waterfield is Blackstone’s water midstream platform in the Permian Basin and has a $500 million equity commitment to pursue greenfield development and acquisitions of water-related infrastructure, helping producers minimize the environmental impact and operating cost of oil and gas production. Waterfield is led by Co-Chief Executive Officers Scott Mitchell and Mark Cahill, who previously built and led Anadarko’s and Western Gas’s Permian Basin commercial water infrastructure platform. Since partnering with Blackstone last summer, Waterfield has put together a highly skilled team that brings together upstream and midstream technical expertise with a deep understanding of the subsurface and operating characteristics of the Permian Basin. This expertise positions Waterfield to provide reliable, turn-key services for its customers. Recently, Waterfield signed a 15-year contract with Guidon Energy (“Guidon”) to construct a new system to handle Guidon’s water gathering and disposal needs across its ~40,000 acre position in Martin County, Texas. In Martin County, Waterfield is targeting deeper disposal zones, as opposed to shallow disposal zones, to provide long-term flow assurance and to support optimal drilling conditions for its upstream customers. Additionally, Waterfield has entered into an agreement with EagleClaw Midstream (“EagleClaw”) to...

Goodnight Midstream places two Permian Basin saltwater pipelines into service

By Sergio Chapa, Houston Chronicle: Published 10:46 am CST, Tuesday, February 5, 2019 Goodnight Midstream has put two pipeline systems into service that will move wastewater from oil and natural gas wells in the Permian Basin to disposal sites. The Dallas saltwater disposal well operator announced that its Llano Pipeline System in New Mexico and its Rattlesnake Pipeline System in West Texas are now in commercial service. Combined, the two pipelines will be able to move 600,000 barrels of produced water per day, which is roughly 25.2 million gallons of produced water per day. “With our first two trans-basin pipeline systems operational, Goodnight Midstream can provide reliable and secure produced water transportation services for our customers operating in the Delaware Basin,” Goodnight Midstream CEO Patrick Walker said in a statement. Produced water is an industry term used to describe water that comes to the surface as a byproduct of oil and natural gas production. Water is often found with crude oil and natural gas in geological formations but because it is mixed with salts, metals, hydrocarbons and other compounds, it must either be cleaned or disposed. Because of high costs to recycle and clean produced water, most companies choose to dispose of it by injecting it deep underground using saltwater disposal wells. Moving produced water via pipeline is considered a cost-saving and safer method than using tanker trucks. Goodnight Midstream’s Llano Pipeline System includes 45 miles of gathering pipelines to move produced water from oil and natural gas wells in Lea County, New Mexico to three saltwater disposal wells. The company’s Rattlesnake Pipeline System includes 25 miles of gathering pipeline to move produced water...