Tag: Permian Basin
Permian Basin smashes production record from 1973 by 25 million barrels
Permian production peak will push U.S. to new record liquids production by end of 2018 The prolific Permian Basin, a mature hydrocarbon ‘super basin’ located in west Texas and southeastern New Mexico, reached a new oil-production record of 815 million barrels or more* in 2017—far exceeding its previous peak of 790 million barrels set in […]
New research shows Permian Basin with 60 to 70 billion barrels remaining
Over 70 Permian Basin plays production corrected Energy researchers at IHS Markit have completed the first, three-year phase of a massive Permian Basin research project that models and interprets the giant basin’s key geologic characteristics. It was done to better estimate Permian’s remaining hydrocarbon potential, and initial results indicate the giant basin still holds an […]
Geology vs. technology: How sustainable is Permian tight?
Less Permian supply from 2021 onwards would exacerbate global supply gap Technology has played a huge role in the rapid rise of production in the Permian. Operators are bullish on the region’s long-term potential and poised to exploit the Permian at an unparalleled pace over the next few years, according to a report by Wood […]
Are Alberta oil sands’ costs lower than American shale basins? You’ll be surprised
Alberta oil sands costs are $30-40/b, compared to $50 break even for most US shale producers The prevailing wisdom in Alberta is that Western Canada is one of the highest cost oil and gas basins in the world. Certainly far more costly than American shale basins like the Permian in West Texas, which is attracting […]
When will American shale oil make money? Maybe by 2020, says Wood Mackenzie
Tight oil most attractive investment theme in the global industry – Wood Mackenzie Tight oil profitability has been the focus of much debate since the oil price collapse of 2014. Its ability to scale down and up quickly and break even at low price points has made the Permian the star of the show for investors, […]
Forecast for US shale oil output up in August to 5.6 million b/d: EIA
US shale output expected to rise for eighth straight month On Monday, the US Energy Information Administration projected US shale production would increase in August to 5.585 million barrels per day (b/d), up 112,000 b/d. Should the estimate from the agency’s monthly drilling report prove true, US shale output will be at its highest level […]
Opinion: US uncompleted wells backlog hangs over oil market
Over 6,000 uncompleted wells across seven largest shale plays By John Kemp LONDON, July 18 (Reuters) – U.S. oil and gas exploration and production companies are drilling new wells faster than they can be fractured and hooked up to gathering systems, creating a growing backlog of drilled but uncompleted oil and gas wells. By June, […]
US news brief July 14: Growing Chinese crude oil demand hurts Asian storage sector
Also in this brief: Earthquake strikes near Cushing oil storage hub, Halcón pivots to Permian with $1.4 billion Bakken deal On Friday, Reuters reported that some Southeast Asia energy traders are cutting their use of storage tanks as short-term demand for oil products increases. Three traders said they have reduced the amount of oil stored in tanks […]
USA oil/gas news brief July 9: US oil exports 1 million b/d, Canada top market
Also in this news brief – 1) McKinsey Insights’ “North American Shale Oil Outlook to 2025” 2) Shale drillers turn to refracturing wells 3) US drillers spend big on “super-spec” rigs Canada imports more than twice as much per day as next leading importer of US oil (China) Reuters – U.S. crude oil exports reached 1.02 […]
Opinion: US shale producers are drilling themselves into a hole
Even US shale producers in Permian Basin struggling to make money By John Kemp LONDON, June 30 (Reuters) – US shale firms are drilling themselves into a deep hole despite warnings from industry leaders about the risk of flooding the market with too much crude. Drilling and production are rising. Prices are declining. Companies are […]
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