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Texas Oil Production Breaks New Record

OilPrice.com: By Tim Daiss - Feb 12, 2019, 3:00 PM CST

Texas Oil Production Breaks New Record

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 more…

Drilling Down: Chevron to ramp up Permian Basin drilling projects

Drilling Down: Chevron to ramp up Permian Basin drilling projects

Chevron drilling and hydraulic fracturing site Wednesday, July 19, 2017 in Midland. ( Michael Ciaglo / Houston Chronicle )

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. read more…

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

Source: Meridian Energy Group

Meridian Energy GroupBELFIELD, 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.  read more…

Blackstone Energy Partners launches Permian Basin midstream platform Waterfield

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. read more…

Goodnight Midstream places two Permian Basin saltwater pipelines into service

Goodnight Midstream places two Permian Basin saltwater pipelines into service

Photo: Goodnight Midstream LLC

By Sergio Chapa, Houston Chronicle: Published 

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. read more…

The Permian Basin Continues To Drive Record U.S. Energy Growth

Dawn over petroleum pump.GETTY

 David Blackmon Forbes.com: Energy

Despite recent low crude prices and a significant drop in the DrillingInfo rig count during January, the giant Permian Basin of West Texas and Southeast New Mexico continues to expand its role as the main driver of energy growth in North America. In just the past week, we have seen the following significant events that are attributable all or in part to what has become the world’s second most-productive oil and gas resource:

A driver of upstream and midstream profits – Both ExxonMobil and Chevron beat analyst expectations with their 4th quarter earnings announcements, driven mostly by their upstream and midstream developments in the Permian. Exxon beat forecasts by almost one-third, with its full-year 2018 earnings coming in at the highest level since 2014. Driven by its Permian drilling, Chevron’s oil and natural gas production rose to an all-time high as the company produced a record 3 million barrels of oil per day (bopd) during the 4th quarter. read more…

The Permian Basin’s demand for crude oil tanker trucks could quadruple in Q2

The Permian Basin’s demand for crude oil tanker trucks could quadruple in Q2

(PHOTO: FREIGHTWAVES)

The Permian Basin’s daily requirements for tanker trucks to take crude out of the oilfield could quadruple in the second quarter of this year, Rystad Energy warned in its January newsletter. Rystad Energy, based in Oslo with its U.S. office in Houston, is a leading independent energy research and business intelligence firm that aggregates and publishes all manner of data on the oil and gas industry.

The slide in West Texas Intermediate (WTI) crude prices—down 31% since October 3—have caused oilfield operators to guide down expected activity in 2019, which Rystad believes will slow down pipeline construction. That means that not only will the bottleneck on pipeline takeaway capacity not be relieved, but it will be exacerbated.

“We do however see risk of widening differentials in Q2 2019 as long-haul trucking demand rises from current levels of ~100,000 bpd to about 350,000-400,000 bpd,” Rystad wrote.

read more…

Joint venture to provide water services to University Lands in Permian Basin

Joint venture to provide water services to University Lands in Permian BasinBy Sergio Chapa, Houston Chronicle - Published

University Lands has awarded a contract to a Houston-based joint venture to provide water services to oil and natural gas operations on 167,000 acres of state-owned lands in the Permian Basin of West Texas.

Houston-based UL Water Midstream LLC will source groundwater for new hydraulic fracturing projects as well as gather, store, transport, recycle, and dispose of wastewater produced by oil and natural gas wells on university-owned lands in Ward, Winkler and Loving counties.

UL Water Midstream LLC is a joint venture of two Houston oil field water companies — H2O Midstream and Layne Water Midstream. read more…

Oil hasn’t started a year this hot since the turn of the century

Worldoil.com: By ALEX NUSSBAUM on 1/18/2019

NEW YORK (Bloomberg) — Oil hasn’t started off this strong in 18 years.

After closing out 2018 in free-fall amid fears of a global supply glut and economic slowdown, U.S. crude prices have rebounded more than 18% to start this year. That’s the biggest climb over the first 13 trading days since January 2001, according to New York Mercantile Exchange data compiled by Bloomberg.

The swift climb higher has coincided with a steep drop in volatility. After reaching its highest level in more than two years, an index tracking West Texas Intermediate crude options prices has sunk to the lowest since November.

Why all the optimism? Analysts and traders credit progress in U.S.-China trade talks, a more dovish stance on interest-rate hikes from the Federal Reserve and signs that OPEC-led production cuts are starting to take a bite out of supplies.

U.S. shale becomes industry’s safe haven as prices languish

By KEVIN CROWLEY, ALIX STEEL AND RACHEL ADAMS-HEARD on 12/11/2018

HOUSTON and NEW YORK (Bloomberg) – Major oil companies are investing more in U.S. shale, not less, after the recent tumble in crude prices. 

It’s a far cry from four years ago when OPEC declared war on American shale areas, which at the time had some of the highest costs anywhere in the world and were often the first on the chopping block during tough times.

The cost of shale production has fallen so much since then that it’s becoming a safe haven for major oil companies in times of volatile prices, providing rapid, reliable growth and quick returns even with crude trading for just over $50/bbl, down by almost a third since the start of October.

The U.S. shale sector has helped boost American production to an average of 10.9 MMbpd this year, the most on record. Output is forecast to grow a further 11% next year, according the Energy Information Administration. read more…

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