Permian Basin

Apache Corp.’s North American production fell 14% year/year during the third quarter, while writedowns contributed to a $5.66 billion loss. The Permian Basin, its biggest U.S. onshore focus, only has 10 rigs running today, versus 42 a year ago.

The United States saw a net loss of four rigs in the most recent county by Baker Hughes Inc. released Friday Nov. 6. That’s a slowing of the decline rate seen in the previous week, but indications are that the count will continue to drop in the weeks ahead.

The pursuit of more efficient drilling and the use of longer laterals continued to be the name of the game for Cimarex Energy Co. during the third quarter, as it cut from 16 to 12 the number of rigs it plans to deploy in the Permian Basin and the Midcontinent next year. But the company blew past its production guidance, and impairments on the value of its oil and gas portfolio trimmed quarterly earnings by more than $750 million.

Why grow production when commodity prices are in the tank? It’s the margin that’s important, not the price. Dallas-based Pioneer Natural Resources Co. turned in a strong quarter of production growth, commodity prices be damned, thanks to efficient operations in the Permian Basin.

When Wile E. Coyote falls off a cliff, he hits a branch or two on the way down. The U.S. rig count did that last week, but now it’s plummeting again, according to Baker Hughes Inc.

Eagle Ford and Bakken shale player SM Energy Energy Inc.’s third quarter profits were drowned in glutted oil and natural gas markets. But drilling times are down, completions are more effective, and well results are improving in core development programs, CEO Jay Ottoson told analysts Wednesday.

Big Data has become a big-time disruptor in building better onshore wells, capturing granular information about potential drilling locations and thus improving costs. Water management has proved more elusive, but information technology has begun to solve that issue too.

Crestwood Equity Partners LP announced Wednesday a nonbinding open season seeking shipper support for its Delaware Takeaway (Delta) crude pipeline system, and said it is in negotiations with private equity firm First Reserve to form a joint venture (JV) to support growing producer demand for midstream infrastructure in the Permian Basin’s Delaware sub-basin.

Low commodity prices swamped the bottom line at Anadarko Petroleum Corp. in the third quarter, and with no expectations for oil and gas prices to move higher in the near-term, the independent is finessing its drilling and completion techniques to improve the future value of its broad portfolio.