(832) 779-2078 [email protected]

HEW-TEX SWD INDUSTRY NEWS ROOM

Permian Basin Operators Look to Standardize Techniques, Measures

Paul Hart Midstream Editor-at-Large, Oil and Gas Investor Hart Energy – Tuesday, January 15, 2019 - 7:30am

Testing on WPX Energy’s Delaware Basin multiwell battery in Loving County, Texas, in March 2017. (Source: Tom Fox/Hart Energy)

Testing on WPX Energy’s Delaware Basin multiwell battery in Loving County, Texas, in March 2017. (Source: Tom Fox/Hart Energy)

DALLAS—Permian Basin drillers have begun to standardize drilling and completion programs that maximize production while keeping costs reasonable, according to the CEO of Dallas-based Haas Engineering, a reserve evaluation firm.

“We’re not seeing as much experimentation now,” Thad Toups told attendees at a Petroleum Engineer’s Club of Dallas luncheon Jan. 11. While “proppant is a driver in recovery,” Toups added as one example, “3,000 pounds [per foot] in my eyes isn’t any better than 2,500 pounds. Unless there is some sort of price change, I think we’re going to be dealing with 2,500 pounds” as something of a Permian standard. read more…

Permian boom holds good news and bad news for OPEC

Worldoil.com: By CHRISTOPHER SELL on 1/15/2019

LONDON (Bloomberg) — The year has barely begun but it’s already shaping up nicely for OPEC, with crude rebounding sharply after the worst fourth-quarter performance since 2014. 

A new production cuts deal with Russia and thawing U.S.-China trade relations have given the market a boost. But for OPEC, good news often comes hand-in-hand with bad news. For that, look no further than the Permian basin.

The biggest shale play in the U.S. is set to pump 3.8 MMbpd this month, according to Energy Information Administration data. That’s more than the United Arab Emirates, the Organization of Petroleum Exporting Countries’ third-largest producer. read more…

Chevron touts nimble shale as electric cars dim big oil’s future

Worldoil.com: By KEVIN CROWLEY on 1/13/2019

Apache Corporation, pump jacks in the Adair San Andreas Unit, Welch, TX.

Apache Corporation, pump jacks in the Adair San Andreas Unit, Welch, TX.

HOUSTON (Bloomberg) — Chevron Corp. will spend about half its capital budget on projects that yield quick returns over the next three years, underscoring the importance of shale as it prepares for growing uncertainty in how the world consumes energy.

The U.S. oil giant will spend about $9 billion to $10 billion a year on “short-cycle investments” through 2022, primarily focused on the Permian Basin, the world’s biggest shale oil region, the San Ramon-based company said in a presentation on its website Friday. The Permian is on course to make up about one in five barrels the super major pumps worldwide.
read more…

Exxon Mobil Bets Big On Permian Bonanza

Seekingalph.com: Nov. 30, 2018 4:40 AM ET – 

Exxon Mobil Corporation hopes to stem oil & gas production losses by investing heavily in the Permian Basin.

Overview of the company’s current asset base, resource potential, and development scheme for the region.

The Delaware Basin is the key focus.

One of the biggest problems Exxon Mobil Corporation (NYSE:XOM) has been contending with over the past few years is declining oil & gas production. While the oil giant consistently brings new producing properties online, natural declines from mature fields have been outpacing those additions. In 2016, the same year Exxon Mobil Corporation started taking unconventional opportunities in the Permian Basin seriously, the firm produced a little under 4.1 million barrels of oil equivalent per day net. By the third quarter of 2018, that had fallen below 3.8 million BOE/d net. Management’s response has been to aggressively scale up Exxon Mobil’s Permian Basin development activities, which has proved somewhat effective. While the energy giant’s natural gas output slipped in Q3 2018 versus Q3 2017 levels, its liquids production was up marginally. Let’s go over how Exxon is using the Permian to its advantage. Read more…

Why The Permian Basin May Become The World’s Most Productive Oil Field

 

Why The Permian Basin May Become The World's Most Productive Oil Field

A Soaring DUC Inventory. But are there indications that Permian production will continue to grow? Yes. Consider the soaring inventory of drilled but uncompleted (DUC) oil wells.

Many people will tell you that the production rate of Saudi Arabia’s Ghawar oil field, which has yielded 5 million barrels of petroleum per day for decades, will never be surpassed. In fact, no other oil field has ever come close to topping the production rate of Ghawar, and up until recently I would have agreed its production would never be topped. Read more…

Western Gas Partners of The Woodlands entered into a $4 billion deal

Wednesday, December 26, 2018

Permian Basin

A recently sold saltwater disposal company is building a new facility with three injection wells in one of the busiest areas of the Permian Basin. Western Gas Partners of The Woodlands entered into a $4 billion deal on Nov. 8 to buy Anadarko’s midstream holdings, which included saltwater disposal subsidiary APC Water Holdings. The deal is expected to close during the first quarter of 2019, but less than three weeks after the announcement, APC is moving forward with plans to build a saltwater disposal facility with three injection wells in Reeves County.

WaterBridge Resources secures $800 million for Permian Basin expansion

WaterBridge Resources secures $800 million for Permian Basin expansionHouston-based WaterBridge Resources LLC has secured up to $800 million in financing that will be used to expand its presence in the Permian Basin of West Texas.

WaterBridge announced on Friday morning that its subsidiary WaterBridge Operating LLC entered into a $800 million debt deal with a consortium of 16 banks led by SunTrust Robinson Humphrey.

 

The water infrastructure company will use the money to pay down debt and buy nearly 70 miles of water gathering pipelines and 19 saltwater disposal wells in four counties as part of two separate deals with Houston-based Halcon Resources and Oklahoma-based NGL Energy Partners LP. read more…

ExxonMobil props up its output by leading Permian in drilling

ExxonMobil props up its output by leading Permian in drillingWorldoil.com: By KEVIN CROWLEY on 12/17/2018

HOUSTON (Bloomberg) — Exxon Mobil Corp. has overtaken rivals to become the most active driller in the Permian Basin, showing the urgency with which the world’s biggest oil company by market value is pursuing U.S. shale.

Even after a slow start in the region of West Texas and New Mexico, Exxon is now operating more drilling rigs than Concho Resources Inc., which merged with RSP Permian Inc. earlier this year to create one of the biggest Permian-focused explorers, according to statistics from RigData Inc. supplied to Bloomberg Intelligence. read more…

Primed-to-pump shale will take OPEC cut but no longer needs it

Worldoil.com: By KEVIN CROWLEY on 12/9/2018

HOUSTON (Bloomberg) — U.S. shale’s response to OPEC’s decision to cut supply and boost prices: We’ll take it, but we don’t need it.

In 2014, the U.S. oil industry’s fate seemed to rest in the hands of OPEC ministers who were flooding the market with cheap oil in a push to obliterate them. Now, the cartel is in full retreat, agreeing to cut output to keep their own economies healthy even as U.S. production continues to surge.

The move came in a week in which oil fell to near $50/bbl, a price that four years ago would have panicked U.S. drillers. But since then, shale explorers have cut costs, boosted fracking efficiency and made wells longer and more productive. The result: Break evens for a 30% profit have been almost halved to just $45/bbl in the prolific Permian Basin. read more…

The Real Implications Of The New Permian Estimates

Undiscovered Resourcesfinance.yahoo.com: Haley Zaremba – Oilprice.com – 

This week the United States Geological Survey (USGS) announced a groundbreaking oil and gas discovery in West Texas’ Permian Basin. According to the organization’s recent press release, a whopping 46.3 billion barrels of oil, 281 trillion cubic feet of natural gas, and 20 billion barrels of natural gas liquids are now believed to lie untapped in the Wolfcamp Shale and overlying Bone Spring Formation area of Texas and New Mexico’s Permian Basin.

Major players in the energy industry already have a significant presence in Wolfcamp and Bone Spring, including Occidental Petroleum Corp. and Pioneer Natural Resources Co. It was already well known and well documented that these fields were remarkably fertile grounds for oil extraction, but the jaw-dropping extent of the new figures released this week by the USGS has made the massive crude and shale reserves of the Permian Basin freshly headline-worthy. The figures in this week’s press release are in fact, in the case of Wolfcamp Shale, more than double the previous resource assessment. Read more…

Archives

The public portion of this site contains only general information regarding classes of products and services that are designed to meet the needs of qualified investors. This is not an offer to sell or solicitation of an offer to buy any security listed herein. Such offer may only be made by written memorandum in a jurisdiction where the offering is duly registered or exempt there from. Please see our investor protection page or download our due diligence, which outlines important information from the US securities and exchange commission (SEC) on recognizing and avoiding oil and gas investment scams. For the complete publication see www.sec.gov/investor/pubs/oilgasscams.htm. Prospective investors should be cautioned that prior performance may not be indicative of future results in any investment, and there can be no prediction as to the future production, if any, of any well to be drilled. Energy investments are speculative and involve a high degree of risk. Oil and natural gas wells are naturally depleting assets. Cash flows and returns may vary and are not guaranteed. Past performance is no indication of future performance. Nothing herein shall be construed as tax or accounting advice. Investors may lose money.