HEW-TEX INDUSTRY NEWS ROOM
Exxon Mobil Bets Big On Permian Bonanza
Seekingalph.com: Nov. 30, 2018 4:40 AM ET – Callum Turcan
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
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
Houston-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
Worldoil.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
finance.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…
USGS: New Mexico’s Permian Basin contains 46 billion barrels of oil
KRQE.com | By: Madeline Schmitt
CARLSBAD, N.M. (KRQE) – The United States Geological Survey (USGS) announced Thursday that the Delaware Basin, which is part of the larger Permian Basin in Texas and New Mexico, is an oil and gas goldmine.
USGS identified the Permian Basin as the largest continuous oil and gas resource potential ever assessed in the country.
Ryan Flynn, the executive director of the NM Oil and Gas Association, says this means New Mexico could meet the energy needs of the entire U.S. for decades to come.
It’s welcome news for an economy already bolstered by a revenue surplus thanks to oil and gas. read more…
Permian’s Delaware Basin 2x bigger than Midland, USGS survey says – Apache Corporation (NYSE:APA) | Seeking Alpha
| By: Carl Surran, SA News Editor
The Permian’s Delaware Basin, the less drilled part of the giant oil field, holds more than 2x the amount of crude as its Midland Basin sister field, according to new data from the U.S. Geological Service.
The Delaware’s Wolfcamp Shale and Bone Spring rock formations hold an estimated 46.3B barrels, the assessment says, and holds 281T cf of natural gas, ~18x the amount in the Midland Basin.
The Midland and Delaware estimates are the USGS’s “largest continuous oil and gas assessments ever released,” says director Dr. Jim Reilly, and consists of “undiscovered, technically recoverable resources.”
Permian producers include EOG, PXD, LPI, FANG, SN, COG, CRZO, CXO, RSPP, DVN, NFX, OXY, CVX, XOM, NBL, APC, APA, WPX, CDEV, REN, EGN, JAG, AXAS, HK, MCF, XEC, PE, SM, MTDR, QEP, AR
U.S. becomes net oil exporter for first time in 75 years
Worldoil.com: By JAVIER BLAS on 12/6/2018
VIENNA (Bloomberg) — America turned into a net oil exporter last week, breaking 75 years of continued dependence on foreign oil and marking a pivotal — even if likely brief — moment toward what U.S. President Donald Trump has branded as “energy independence.”
The shift to net exports is the dramatic result of an unprecedented boom in American oil production, with thousands of wells pumping from the Permian region of Texas and New Mexico to the Bakken in North Dakota to the Marcellus in Pennsylvania.
While the country has been heading in that direction for years, this week’s dramatic shift came as data showed a sharp drop in imports and a jump in exports to a record high. Given the volatility in weekly data, the U.S. will likely remain a small net importer most of the time. read more…
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