Permian Basin

A substantial inventory in the Lower 48 of drilled but uncompleted wells, aka DUCs, could sustain drilling — without adding more wells — long into the coming year, according to a new analysis. “After DUCs run out, however, rig activity in the five key oil regions needs to be in the 280-300 range to maintain…

Dallas-based independent Matador Resources Co. and midstream affiliate San Mateo Midstream have ramped up an expansion at the Black River cryogenic natural gas processing plant in Eddy County, NM, to serve the Permian Basin Delaware.  The 200 MMcf/d expansion at the San Mateo facility brings total incremental design inlet capacity to 460 MMcf/d. The expansion…

Kinder Morgan Inc. has restarted construction activities along the Permian Highway Pipeline (PHP), one day after contractors discovered a “suspicious package” at a work site in Blanco, in the Texas Hill Country. Kinder immediately halted work in the immediate vicinity and secured the area after the “device” was found. The construction area was thoroughly inspected…

Tulsa-based NGL Energy Partners LP has signed a long-term extension and expansion of an acreage dedication with an existing customer in the Permian Basin.  The agreement with an undisclosed customer is for an operating area in New Mexico’s Lea and Eddy counties within the Delaware sub-basin, NGL said. The acreage dedication through 2027 was increased…

Phillips 66 Partners is launching an open season Tuesday to gauge interest in additional crude oil transportation capacity from the Permian Basin to South Texas. The new takeaway capacity along the Gray Oak Pipeline would terminate in Victoria, 85 miles northeast of Corpus Christi. In-service is targeted in the first half of 2022. The 850-mile…

Privately held Barron Petroleum LLC said it made a substantial oil and natural gas discovery at a 13,000-acre field in West Texas. The Graham, TX-based exploration and production company, which has been working with geoscientist William Purves on the project since 2018, said a discovery well found an estimated 74.2 million boe in reserves.  The…

The U.S. natural gas rig count fell one unit to 69 during the week ending Friday (Aug. 21), a small decline overshadowed by a decisive uptick in oil-directed activity, the latest data from Baker Hughes Co. (BKR) show. For the first time since the widespread adoption of measures to limit the spread of Covid-19 began…

U.S. midstream management teams doubled down on cost cuts and reduced capital expenditures (capex) during second quarter earnings season. However, many also struck generally optimistic tones about improving volumes and a gradual recovery from the energy slump imposed by the coronavirus pandemic. Overall, “the messaging was really good, particularly around considerably less capex going forward,…

Natural gas futures soared higher Tuesday as traders attempted to close the massive gap between the front of the curve and the winter contracts. Despite little change in the fundamental backdrop, the September Nymex futures contract jumped 7.8 cents day/day to settle at $2.417. October climbed 8.0 cents to $2.556. Spot gas prices were mixed…