Permian Basin

Rig count might be the headline number in the shale patch, but when it comes to estimating future production from rig census, increasing rig efficiency and well productivity can make the calculation complicated.

Even in a depressed global oil market, keeping U.S. crude production tied up at home imposes a significant cost on U.S. producers, according to a Rice University researcher. Further, exporting crude would not raise domestic gasoline prices but would improve national energy security, he said.

A Texas House committee hearing of two bills intended to rein in municipalities’ regulation of drilling activities drew a standing-room-only crowd Monday afternoon and impassioned argument from both sides.

If the Baker Hughes Inc. rotary rig count for North America during the March 23-27 week drops by 113, the tally of active rigs will be half of what it was a year ago. The count for the week ending March 20 shows a decline of 136 rigs in North America at 1,209 active, and that’s down 983 from one year ago.

Two weeks after divesting all of its East Texas and non-core Louisiana assets to its master limited partnership (MLP), executives with Memorial Resource Development Corp. (MRD) said their company is now a pure-play exploration and production (E&P) outfit focused on redeveloping a legacy oil and gas field in Louisiana.

If the economic health of the Texas oil and gas industry were an elevator, its only direction would be down — down for crude oil prices, rig count, drilling permits and employment — and for the Texas Petro Index (TPI), which most recently has shed seven points, according to an economist who has been keeping score.

Conventional business wisdom continues to prevail in unconventional plays; that is to say, producers are going where the money is and pursuing the most economical oil/gas opportunities in the low-price environment.

Bills recently introduced in the Texas legislature intended to thwart local municipality interference with oil and gas drilling have raised the ire of the Texas Municipal League (TML), but an industry trade association said the proposed changes would strengthen the relationship between the state and cities in oil/gas regulation.

Frank’s International NV, whose operations are based in Houston, has agreed to buy cross-town competitor Timco Services Inc., a move that would expand its oilfield services in the United States, especially in the Eagle Ford Shale and Permian Basin.