Permian Basin

As it looks to protect its balance sheet in 2016, SM Energy Co. will focus its drilling and completion activity on the Permian Basin “to the maximum extent possible,” shifting to an oilier mix as it weathers the downturn in commodity prices.

Carrizo Oil & Gas Inc. is following in the footsteps of many of its peers and cutting capital spending compared to last year’s levels as it preserves capital for better times. The Eagle Ford Shale is the focus area, and any potential divestitures are on hold for the time being.

Improved well economics and savings resulting from pipeline infrastructure investments have Permian Basin pure-play operator Laredo Petroleum Inc. ready to endure continued low commodity prices in 2016, the company told investors Wednesday.

In a lower-for-longer commodity price environment, Diamondback Energy Inc. management said Wednesday the Midland, TX-based Permian operator could be looking for potential mergers and acquisitions (M&A) should the right opportunity present itself.

Pragmatic about what it can — and cannot — accomplish in the current environment, Devon Energy Corp. has no plans to accelerate exploration and production “in a $30.00 and $2.00 world,” CEO Dave Hager said Wednesday. Top line production is forecast to decline by 6% in 2016, led by a sharp pullback in onshore natural gas fields.

Federal worker safety authorities last Friday issued a hazard alert for tank gauging with particular relevance for operators involved in shale oil handling and storage. The action follows fines levied against two oilfield service companies in Colorado involved in a worker’s death at an oil tank site in 2014.

The Railroad Commission of Texas (RRC) is reminding oil and gas producers in a seven-county region of the Permian Basin in West Texas that they share the sky with an astronomical observatory that works best when the sky is kept as dark as possible.

Energen Corp. plans to sell off its non-core assets in the San Juan and Delaware basins as it transitions to a pure-play operator in the Permian Basin, the company said.

Pioneer Natural Resources Co. will cut its drilling program in half in 2016 in response to the commodity price outlook, but with a strong balance sheet and improved drilling efficiency, executives said the company is well positioned to endure the downturn and capitalize when prices recover.