permian

The outlook for onshore U.S. exploration companies is becoming “incrementally positive” for 2017 and beyond, as supply/demand fundamentals correct and commodity prices begin to move higher, analysts with Raymond James & Associates Inc. are predicting.

In the latest survey of drilling activity tallied by Baker Hughes Inc. (BHI) and NGI, the Permian Basin’s Delaware sub-basin added four more rigs to end the week at 89 active. That likely doesn’t surprise those who attended the recent Enercom industry conference.

Apache Corp.’s legacy Permian Basin portfolio is still churning out the hits after the operations team produced the best-ever well in history in the Delaware play during the second quarter.

During the second quarter Denver-based SM Energy Co. saw its production grow by 7% over the previous quarter, thanks to improvements in both the Permian Basin and the Eagle Ford Shale, while costs came down.

Devon Energy Corp. increased 2016 production guidance by 3% and may add up to seven rigs across the Permian and Anadarko basins by year’s end as cost reduction efforts improved the bottom line and onshore resource plays once again topped expectations.

Led by burgeoning production in the Permian Basin’s Delaware sub-basin, Concho Resources Inc. saw total production reach 13.2 million boe in the second quarter, a 4% increase compared to 1Q2016, the Midland, TX-based independent said.

While not bullish on prices or a fast production recovery, Occidental Petroleum Corp. (Oxy) CEO Vicki Hollub said Wednesday the company expects to add two rigs in its extensive Permian Basin operations in the fourth quarter and possibly increase to as many as 15 rigs next year.

U.S. onshore results may have been lost in the weak second quarter performance by Chevron Corp., but the No. 2 U.S. producer had a strong story to tell about its onshore portfolio, particularly the venerable Permian Basin.

ExxonMobil Corp. is pursuing efficiencies across its global operations, with a particular focus in the U.S. onshore on the Permian Basin and Bakken Shale, the investor relations chief said Friday.