Permian Basin

Lower 48 Oil Well Productivity Stumbling, Pointing to Bullish Prices in 2021, Says Raymond James

Lower 48 Oil Well Productivity Stumbling, Pointing to Bullish Prices in 2021, Says Raymond James

U.S. liquids supply growth may struggle to grow more than 500,000 b/d a year as Lower 48 well productivity, particularly in the Permian Basin, declines, according to research by Raymond James & Associates Inc. The analyst team led by Marshall Adkins on Monday said its current base case production forecast for the United States assumes…

August 3, 2020
Apache Curtailing Some Permian Oil Until Prices ‘Well Into the $50s,’ Says CEO

Apache Curtailing Some Permian Oil Until Prices ‘Well Into the $50s,’ Says CEO

Apache Corp. has no plans to raise rigs again in the Permian Basin “unless oil prices recover well into the $50s,” CEO John Christmann said Thursday. The Permian, which in recent years had been the Houston independent’s No. 1 prospect, continues to deliver “highly competitive economics,” Christmann said. However, “other areas within our portfolio offer…

July 31, 2020
Surging Texas-Mexico Natural Gas Exports Set For Continued Gains as Permian Production Rebounds

Surging Texas-Mexico Natural Gas Exports Set For Continued Gains as Permian Production Rebounds

Natural gas exports from West Texas to Mexico could average up to 1.5 Bcf/d throughout the second half of 2020 and 2021, driven by the completion of new infrastructure south of the border, according to a new analysis by Rystad Energy. Fermaca’s Villa de Reyes-Aguascaliente-Guadalajara (VAG) pipeline began operations in June, marking the completion of…

July 29, 2020
Permian Natural Gas Output Seen Rebounding Sharply, with Pipe Constraints Likely from 2023 Onward

Permian Natural Gas Output Seen Rebounding Sharply, with Pipe Constraints Likely from 2023 Onward

Natural gas production from the Permian Basin is expected to return to record levels by late 2021 and reach 16 Bcf/d by the end of 2023, although delayed pipeline approvals could limit takeaway capacity beginning in 2023, according to new analysis by Rystad Energy. The 16 Bcf/d figure, which assumes a $45-50/bbl West Texas Intermediate…

July 28, 2020
Precision Drilling Improves Bottom Line, but Pandemic Clouds Outlook

Precision Drilling Improves Bottom Line, but Pandemic Clouds Outlook

Global drilling behemoth Precision Drilling Corp. cut costs by double-digits and improved efficiencies across its operations during the second quarter, but there’s paltry visibility as uncertainties surrounding the impacts of Covid-19 remain a concern, management said. Even though revenue plunged by nearly half from a year ago to $47 million, the multi-talented operator is poised…

July 24, 2020
Ring’s Permian Oil Flowing Close to Pre-Curtailment Levels

Ring’s Permian Oil Flowing Close to Pre-Curtailment Levels

Permian Basin pure-play Ring Energy Inc., which in late April curtailed nearly all of its Delaware sub-basin output, is ramping up, with production now approaching 9,000 boe/d net. In an update late Wednesday, the Midland, TX-based independent said it began flowing oil again in early June when commodity prices were improving and price differentials were…

July 24, 2020
August Natural Gas Futures Recover Ground Amid Cooling Demand Expectations, Signs of LNG Improvement

August Natural Gas Futures Recover Ground Amid Cooling Demand Expectations, Signs of LNG Improvement

August natural gas futures gathered momentum on Tuesday, buoyed by expectations for strong near-term cooling demand and new indications that U.S. exports could recover later in 2020. The August Nymex contract climbed 3.4 cents day/day and settled at $1.675/MMBtu. September gained 3.0 cents to $1.714.  NGI’s Spot Gas National Avg. lost a half-cent to $1.615.…

July 21, 2020
New Mexico Targeting 98% Methane Capture from Oil, Natural Gas Operations in Six Years

New Mexico Targeting 98% Methane Capture from Oil, Natural Gas Operations in Six Years

New Mexico authorities on Monday published two separate sets of draft rules aimed at curbing methane emissions from oil and natural gas operations. The Energy, Minerals and Natural Resources Department (EMNRD) unveiled what it called “New Mexico’s first comprehensive methane regulations,” which propose 98% natural gas capture from the oil and gas industry by the…

July 21, 2020
Oil, Natural Gas Production Slide to Continue Next Month in Key Lower 48 Unconventional Plays

Oil, Natural Gas Production Slide to Continue Next Month in Key Lower 48 Unconventional Plays

Deflating oil and natural gas production from seven of the most prolific U.S. onshore unconventional plays is expected to continue in August, according to the Energy Information Administration (EIA).  Total oil production from the Anadarko, Appalachian and Permian basins, and the Bakken, Eagle Ford, Haynesville and Niobrara formations is expected to decline to 7.49 million…

July 13, 2020
EnerCorp Merging with Pro Oil to Build OFS Business in Lower 48

EnerCorp Merging with Pro Oil to Build OFS Business in Lower 48

EnerCorp Engineered Solutions said Monday it is merging with well flow specialist Pro Oil & Gas Services LLC to expand well construction services across North America.  EnerCorp, headquartered in The Woodlands near Houston, formerly was EnerCorp Sand Solutions. The oilfield services (OFS) specialist has focused on sand separation technologies, as well as providing ancillary flowback…

July 13, 2020