Hydraulic fracturing operations slowed considerably across the Lower 48 last year as the pandemic slammed the oilpatch, but proppant operators are seeing signs of a turnaround as their customers begin completing wells. The management teams of U.S. Silica Holdings Inc. and Smart Sand Inc. recently held their fourth quarter conference calls, acknowledging the struggles through…
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Correction
In the story, “ConocoPhillips, Pioneer Natural CEOs Preach Discipline as Permian Activity Rebounds,” Pioneer Natural Resources Co.’s free cash flow (FCF) projections were misstated. Pioneer expects to deliver $16 billion of cumulative FCF over the next five to six years, assuming a $55/bbl Brent crude oil price. NGI’s Shale Daily regrets the error.
Wyoming Governor Blasts Interior for Pausing Oil, Gas Permits and Postponing Lease Sale
Wyoming’s revenue could be devastated in the near term by the pause in oil and gas permitting on federal lands, Gov. Mark Gordon warned on Wednesday. In a letter to Acting Interior Secretary Scott de La Vega, Gordon outlined his concerns over Secretarial Order 3395 issued in January regarding the pause in issuing federal permits…
Vaca Muerta Oil Production Hitting Record Levels, but Natural Gas Still Lagging
Oil production from the vaunted Vaca Muerta shale deposit in the Neuquén basin in Western Argentina has come roaring back after months of slower exploration and production activity. Vaca Muerta reached a record high of 124,000 b/d in December, and it can continue toward 145,000–150,000 by the end of 2021 if current activity levels continue,…
Ring Drilling First Permian Horizontal in 10 Months, but Executive Upheaval Drawing Concerns
Permian Basin producer Ring Energy Inc. said Thursday it has begun drilling its first horizontal well in 10 months on the Northwest Shelf leasehold in West Texas, a positive sign in what is proving to be a year of upheaval for the company. The Badger 709 B No. 6XH oil San Andres well in Yoakum…
NextTier, NOV Testing E-Fracking Prototype for Lower 48 Well Sites
Oilfield services operator NexTier Oilfield Solutions Inc. is collaborating on field tests of National Oilwell Varco Inc.’s (NOV) electric fracturing, aka e-fracking, system to reduce emissions and equipment at well sites. The Houston-based operators plan to test NOV’s Ideal eFrac fleet, which was introduced in the third quarter. NextTier, a completions provider, works in the…
Goodrich Looking to Haynesville As Natural Gas Prices Improve in 2021
With the 2021 natural gas futures strip price improved to more than $3.00/Mcf, Haynesville Shale-focused Goodrich Petroleum Corp. has increased its outlook and cash flow potential for the coming year. The independent’s production is 98% weighted to natural gas, and the latest price signals could “dramatically” help increase earnings potential, CEO Gil Goodrich said during…
Colombia Inches Closer to Becoming Second South American Nation to Use Fracking
Colombia has published the terms of reference for its hydraulic fracturing (fracking) pilots and will award contracts to four projects by the end of this month. According to a reference document published in October by the National Hydrocarbons Agency (ANH), the most “favorable” four projects will be picked from those taking part in the bidding…
U.S. Rig Count Extends Steady Uptrend on Strength of Permian Gains
Further recovery in the oil patch, especially in the Permian Basin, lifted the U.S. rig count nine units higher to 296 for the week ending Friday (Oct. 30), according to Baker Hughes Co. (BKR) data. The addition of 10 oil-directed rigs offset the departure of one natural gas-directed unit in the United States for the…
Devon, WPX in $12B ‘Merger of Equals,’ Combining Permian, Multi-Basin Portfolios in Lower 48
Lower 48 giants Devon Energy Corp. and WPX Energy Inc. said Monday they are tying up in an all-stock transaction valued at $12 billion including debt to create operations dominated by a 400,000 net acre Permian Basin leasehold. The two Oklahoma-based independents said the company, still branded as Devon, would create a “merger of equals”…