Permian Basin

More crude oil takeaway is set to be built from the Permian Basin to Cushing, OK, following a successful open season by a subsidiary of Plains All American Pipeline LP (PAA).

The drilled but uncompleted (DUC) well count in the Permian Basin had risen to 2,163 at the end of May, about 78% higher than a year ago, as the most active area of the United States continues to draw more rigs and more people, according the Federal Reserve Bank of Dallas.In a report issued last week specifically about the economic conditions in the Permian, economists reviewed data using Texas data for the Midland-Odessa metropolitan statistical area and the 55 counties in West Texas and southern New Mexico that make up the Permian Basin region. The insight follows up on the 2Q2017 Dallas Fed Energy Survey issued at the end of June.

Silverback Exploration II LLC, whose predecessor company captured a significant position in the Permian Basin, on Monday said it has another $500 million in hand from EnCap Investments LP to pursue conventional and unconventional U.S. resource plays.

Houston independent Halcon Resources Corp. has agreed to take $1.4 billion for its Williston Basin properties to focus exclusively on the Permian Basin’s Delaware formation in West Texas.

ExxonMobil Corp.’s XTO Energy Inc. and Summit Midstream Partners LP are teaming up to develop, own and operate an associated natural gas gathering and processing system to serve Permian Basin operators in New Mexico.

New Mexico’s June oil and natural gas lease sale collected $654,448, which pushed fiscal year 2017 earnings from monthly sales to more than $65 million, nearly doubling the previous year’s proceeds of $36 million.

Houston-based Carrizo Oil & Gas Inc. agreed to nearly double its West Texas Permian Basin portfolio in a $648 million deal with private equity-backed Exl Petroleum Management LLC.

Natural gas takeaway from the Permian Basin’s Waha Hub still has room to grow on existing pipelines, with “considerable upside” on potential exports across the border to Mexico, according to an analysis by RBN Energy LLC.

Oil-directed drilling in the Permian Basin is creating yet another natural gas glut that could keep prices lower for longer and threaten industry growth across the country.