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Analyst: Almost 1,000 more salt water disposal wells needed by 2030

Raymond James & Associates analyst Marshall Adkins told clients Monday that Permian Basin will need almost 1,000 additional salt water disposal wells by 2030. Recycling efforts currently can’t handle the 17.5 million barrels per day of “dirty” water produced in the Permian Basin, Adkins said. “As crude production grows, produced ‘dirty’ water grows even faster. As the Permian Basin shifts further into manufacturing mode, the water growth we project will create the need for nearly 1,000 additional salt water disposal wells by 2030.”

The Race To Save $100 Billion – A Digital Revolution In Oil

OilPrice.com:

In a new in-depth study, Rystad Energy estimates that as much as $100 billion can be eliminated from E&P upstream budgets through automation and digitalization initiatives in the 2020s. Service companies are reinventing themselves to help operators unlock these savings.

In 2018, $1 trillion was spent on operational expenditures, wells, facilities and subsea capital expenditures across more than 3,000 companies in the upstream space. There are varying degrees of potential savings within offshore, shale and conventional onshore activity budgets, but in total, around 10% of this spend can be erased through more efficient and productive operations thanks to automation and digitalization.

“Many key industry players are setting optimistic goals, but the realization of these initiatives largely depends on how freely data is shared amongst companies and how commercial strategies are deployed to drive this development. Because of this, it could be years before we see full adoption. However, based on our analysis of 2018 capital spend and operational budgets, we believe savings could easily reach $100 billion,” says Audun Martinsen, head of oilfield services research. Read more…

Drilling Down: Denver saltwater disposal well operator makes Permian Basin push

Houston Chronicle:

Denver oilfield water company Felix Water is seeking permission to drill 13 injection wells on its Pbar SWD lease in Loving County. Photo: Courtesy Photo / Felix Water LLC

Water remains a big issue in the arid Permian Basin of West Texas where for every barrel of oil produced, another four to 10 barrels of saltwater — the remnants of an ancient inland sea — come out of the ground.

Over the past week, six companies filed 20 drilling permits to develop saltwater disposal, or injection, wells in the West Texas shale play.

Denver oilfield water company Felix Water led the pack by seeking permission to drill 13 injection wells on its Pbar SWD lease in Loving County. Occidental Petroleum-owned APC Water Holdings is seeking to develop another three saltwater disposal wells in Reeves County. Read more…

Saudi Arabia Has a New Energy Minister: What It Means for Oil

Bloomberg.com: By - Updated on

Prince Abdulaziz Bin Salman
Photographer: Joe Klamar/AFP via Getty Images

Saudi Arabia’s King Salman Bin Abdulaziz named his son Prince Abdulaziz as the country’s energy minister, replacing Khalid Al-Falih, who led three years of active OPEC diplomacy to forge a global alliance with producers such as Russia to limit production in order to prop up prices. Will this change the policy, or will it affect Saudi Aramco’s plan for an initial public offering?

Who is the new minister in charge?

Prince Abdulaziz served as deputy petroleum minister for a dozen years and most recently as minister of state for energy since 2017. He is an older half-brother of the influential Crown Prince Mohammed bin Salman, though the pair aren’t believed to be close and are quite far apart in age. Prince Abdulaziz’s years in the ministry prepare him for the top role.

Oil rises 0.1% to $56.30 as US inventories decline

An Iraqi worker gauges gas emissions from an oil pipe at the Daura oil refiner - Getty Images

Oil prices ticked higher on Thursday amid a sharp decrease in U.S. crude inventories and investor hopes of progress in resolving the U.S.-China trade feud.

Global benchmark Brent crude gained 16 cents, or 0.2%, to $60.86 a barrel. U.S. West Texas Intermediate (WTI) crude added 4 cents, or 0.1%, to $56.30 a barrel.

U.S. crude, along with gasoline and distillate inventories, fell last week. Crude stocks dropped 4.8 million barrels, which was more than the 2.5 million barrel draw analysts had expected, the Energy Information Administration said.

Net U.S. crude imports, however, rose last week by 934,000 barrels per day. Read more…

The Oil And Gas Situation: Exxon Not Panicking, Permian De-Bottlenecking

Some very interesting developments on the oil and gas front this week related to the Permian Basin:

The Permian bottleneck continues to de-bottleneck. – Reuters reports that crude loadings at the Port of Corpus Christi (PortCC) rose to a record 1 million barrels of oil per day (bopd) last week, after two major new pipelines carrying Permian Basin oil - EPIC and Cactus II - went into service. Those lines have a total capacity of more than 1 million bopd, so the near-doubling of deliveries from July’s average of 525,000 bopd is not surprising. Read more…

Nothing on Earth Can Replace Helium — and It’s in Peril

Liquid helium has helped build billion-dollar industries and generate multiple Nobel Prizes. Now our supply is running low.

NYTIMES.com: By Dr. DiVerdi is a chemistry professor. - Sept. 4, 2019

Alexander Glandien

Liquid helium is a quiet engine of American research and business. It is essential to a broad range of technologies, from cutting-edge quantum computing to M.R.I. scanners in hospitals. It has fostered the development of billion-dollar industries, fueled essential lifesaving medical tools, supported work leading to more than 5,000 patents and helped generate multiple Nobel Prizes. In short, it is crucial to innovation. Read more…

Concho sells Permian assets to Houston’s Spur Energy for $925M

Photo: Daniel Acker, Bloomberg

Midland’s Concho Resources said Tuesday it will sell its more mature Permian Basin assets in New Mexico for $925 million to the Houston startup Spur Energy Partners.

Concho, which has struggled financially of late, will use the funds to cut down on debt and initiate a share buyback program to help appease Wall Street, while Spur Energy will keep building its foothold in the Permian’s northwestern shelf, which is outside of the booming Delaware Basin in New Mexico.

Concho said it’s starting a share repurchase effort of up to $1.5 billion to help boost the company’s stock. The sale includes about 100,000 gross acres producing 25,000 barrels of oil equivalent a day. Concho will keep its large presence in the Delaware Basin in New Mexico. Read more…

A Well-Kept Secret: The US Has Become an ‘Energy Superpower’

CBN.com: 08-13-2019 - Heather Sells
 

PERMIAN BASIN, Texas – Many Americans don’t know that over the last few years the US has become an energy super-power and that much of the growth comes from a remote region in Texas that you’ve probably never heard of.

20 years ago, big oil was pulling out of the Permian Basin. Today it’s the reason the US is the top oil and gas producing country in the world.

Todd Staples, the president of the Texas Oil and Gas Association, is only too happy to talk about what’s happening here. Read more…

Drilling Down: Pioneer’s big bet on the Midland Basin

Scott Sheffield, CEO of Pioneer Natural Resources, in portrait Wednesday, Feb. 18, 2015 at the Pioneer building on N. Big Spring in Midland. James Durbin/Reporter-Telegram

Irving oil company Pioneer Natural Resources is betting on its leases in the eastern end of Permian Basin.

Pioneer filed for eight drilling permits over the past week to develop horizontal wells on seven leases split between Midland and Upton counties.

Located in an area of the Permian known as the Midland Basin, the wells target the Spraberry formation down to depths of 10,531 feet.

During a recent investors call, Pioneer Natural Resources Chief Executive Scott Sheffield said the western end of the Permian, known as the Delaware Basin, is being drilled “too aggressively.” Read more…

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