Unauthorized distribution, transmission or republication strictly prohibited. EOG Resources reduced its 2020 capital plans 31% to $4.3-4.7 billion. “Our development program over the next three years is designed to maintain production levels, generate positive projected free cash flow at a West Texas Intermediate oil price of $50/bbl and deliver more than $100 million in projected free cash flow at $55/bbl,” he goes on. Shale Experts is the only tool you will need to track,predict and analyze US & Canada activities. He adds that the company’s type curve is about 90 bbl/foot in the Wolfcamp and 70 bbl/foot in the Lower Spraberry reservoirs. In its fourth-quarter operating report, the company announced that the $97 million it incurred in drilling and completion costs in the quarter was in line with expectations, even with one additional completion, with Laredo achieving performance records for both footage drilled and completed feet per day. ExxonMobil currently has eight rigs in the basin, versus 57 in first-quarter 2020, while Chevron is at five rigs, down from 17 in from Q1 2020. Parsley Energy of Austin, one of the top 20 drilling companies in Texas, said March 9 it plans to reduce drilling rigs from 15 to 12 and reduce hydraulic fracturing crews from 5 to 3. Call 1-800-847-8301 to reserve a special position today! The Permian Basin is a large sedimentary basin in the southwestern part of the United States.The basin contains the Mid-Continent Oil Field province. Pioneer plans to operate 23-24 rigs in the Permian in 2020 and place 345-375 wells on production by year’s end, mainly in the Wolfcamp A, Wolfcamp B and Spraberry formations. In early February, Laredo closed on a bolt-on acquisition to its tier-one Howard County position, adding 1,100 net acres to increase its operated inventory in Howard County to 130 gross (124 net) primary locations in the Lower Spraberry, Upper Wolfcamp and Middle Wolfcamp formations. Its Culberson wells have a $2 expense per barrel of oil equivalent compared with $3.50 per boe on the rest of the Delaware Basin. Search by team name. Total average well cost, adjusted to a 10,000-foot lateral using 2,400 pounds of sand per foot, was $7.4 million, or 8% less than predrill cost assumptions. Summary The Permian Basin has been the most affected play in the US since the beginning of the Covid-19 pandemic. This dashboard also allows you to investigate the exact permitted locations and other details. ... About the 2020 Permian Basin Heart Walk Digital Experience Make more moments possible. By continuing to browse this website without changing your web-browser cookie settings, you are agreeing to our use of cookies. Five new oil pipelines are set to open in the Permian Basin through 2021, expanding a gap between production and takeaway capacity that’s already … The enhanced completions design, utilizing 2,400 pounds of sand per foot, is expected to increase the cost for an Upper/Middle Wolfcamp 10,000-foot lateral to $6.8 million, but potentially enhance well productivity. But more spending doesn’t necessarily equate to more production. “Our leasehold is nearly 92% oil. The company says it is continuing with developing its acreage on wider interwell spacing. Here are some links to the data we have available on the Permian Basin, Wolfcamp, Bone Springs, Spraberry. Pioneer ranks as a top operator in terms of activity and performance, and leads the way with respect to reducing flared or vented gas production. A sedimentary basin lying underneath the western part of Texas and the south-eastern part of New Mexico, the Permian Basin Shale covers roughly 75,000 square miles, almost half the size of California. The company averaged drilling about 1,000 feet a day and completing 1,600 feet a day in 2019. It is important to remove the black eye on the Permian.”. OIL. Clark says lateral lengths are consistently getting longer and proppant loads have gone up. Oil production of 27,296 barrels per day beat guidance by 5% and total production of 83,968 barrels of oil equivalent per day beat guidance by 10%. From East to West, the play spans 250 miles and 300 miles from North to South. The Permian Basin | April 2020. “We are a little more conservative than most when it comes to spacing,” responds Barry Clark, president of Corpus Christi, Tx.-based Sabalo Energy, which has participated in 150 operated and nonoperated horizontal wells in the northern reaches of the Midland Basin in Howard County. Opposite the trend to increase well spacing in the Permian, Clark notes that stage-to-stage spacing is getting tighter. Pioneer Natural Resources Company averaged drilling 1,000 feet a day and completing 1,600 feet a day in 2019 while lowering its average horizontal well costs from $12.4 million in 2018 to $8.8 million last year. Pioneer, which is drilling four wells per pad with average lateral lengths of 9,800 feet, placed 77 horizontal wells on production in the fourth quarter. Pigott says Laredo is beginning to add more sand to its standard completions design, taking advantage of the low cost of in-basin sand. All anticipated first-quarter completions are on Laredo’s established acreage in Reagan and Glasscock counties, where it is operating one completion crew, but will shift much of its focus to newly acquired acreage in Howard and Glasscock counties in the second quarter. It has produced more than 31.5 billion barrels … With offices in Midland, Texas, Coyanosa, Texas, and Carlsbad, N.M., XTO has close to 800 employees in the Permian Basin, and expects to ramp up substantially over the next several years. It brought 23 net wells on production in the fourth quarter, including 12 ahead of schedule. Now we are drilling 15,000-foot laterals. “During 2019, we successfully completed our transition to a returns-focused, free cash flow-oriented strategy,” reports Jason Pigott, Laredo’s president and chief executive officer. “Throughout 2019, we drove down well costs, unit lease operating expenses, and unit general and administration expenses, while improving well productivity versus 2018 by widening development spacing. More:Major Permian Basin oil and gas companies merge to survive coronavirus pandemic “Our state is continuing to take unprecedented steps forward to spur economic investment in furthering the science and technology associated with produced … The company lowered cost on 76 net wells in the Delaware Basin last year to $1,188 per completed lateral foot. Development activity will be focused on the economic core of its top-tier Delaware Basin and Eagle Ford assets. In the company’s year-end earnings report, Sheffield lists five key factors in lowering costs per well. It is often oversimplified and mischaracterized as a singular play with homogeneous … Scott Sheffield, president and chief executive officer of Pioneer Natural Resources Company, says the company had an “excellent” 2019, thanks in part to lowering the cost of each well drilled and completed from $12.4 million in 2018 to $8.8 million last year. Mergers of major oil and gas companies continued into the new year as the industry continued to recover from an historic bust in 2020 brought on by the COVID-19 pandemic. It’s a story of hard work and free enterprise, gut feelings and calculated risks, ingenuity and science, and legendary characters and companies. Total equivalent production is expected to average 270,000-286,000 boe, essentially flat from 2019. Speaking of natural gas, Sheffield says one proposal at a recent conference on flaring in the capital city of Austin was to set a target of flaring less than 2% of produced gas in West Texas. “Although early, initial production results are encouraging and reinforce the company’s assumption that Cline wells benefit from larger completions. “Significantly, expected returns at the lower well cost increase by 6% and 8% at $50/bbl and $55/bbl, respectively,” Laredo stated in a release announcing the completion of the two Cline wells. Cimarex Energy also is reporting success with 8,500-foot or longer laterals in the Wolfcamp and Bone Spring formations in the Delaware Basin. Thanks to new extraction techniques oil companies have finally figured out how to unlock the oil and gas trapped within its unique geology encompassi… Summary The Permian Basin has been the most affected play in the US since the beginning of the Covid-19 pandemic. Permian Basin Companies Getting Back To Work As Recovery Continues Editor’s Note: The Permian Basin is the essence of American energy. However, Clark says it has been his experience that production from parent wells temporarily shut in while offset child wells are being fractured usually comes back equal to or better than the levels prior to stimulating the child wells. Active County >>, More Permian Basin Drilling Permits >>, Permian Basin Rig Data & Trends, Company budgets (Allocated capital by company), Noble Midstream Fourth Quarter, Full Year 2020 Results; 2021 Plan, Chevron Offers to Buy Out Noble Midstream Partners, More Midstream In the first quarter, Laredo took a major step toward incorporating the Cline formation into its future Midland Basin horizontal development program, completing two Cline wells. “I have seen a lot of data about spacing, including some weird parent-child productivity degradation problems in some projects.”. The Permian Basin covers approximately 86,000 square miles and encompasses 52 counties in New Mexico and Texas. “By deploying our proven operations expertise on acreage with higher oil content, we expect to further improve margins and capital efficiency and drive our oil mix above 40% by 2022. “We would like to get all producers committed to sharing best practices,” he emphasizes. ExxonMobil currently has eight rigs in the basin, versus 57 in first-quarter 2020, while Chevron is at five rigs, down from 17 in from Q1 2020. According to Clark, the company is currently completing a six-well pad and plans to move to eight wells per pad in the future, after initially drilling single wells to hold acreage by production. • Rystad Energy conducted this analysis during July and August 2020. Continued growth of oil and gas production in the Delaware Basin – on the western side of the greater Permian Basin – prompted service companies to expand their operations aside from oil and gas drilling to better serve energy companies in the region. © 2021 Shale Experts, All rights reserved. “As we review our three-year plan, we believe a ratable level of activity should, at a minimum, yield similar production growth with increasing free cash flow in each of the next three years at $50/bbl WTI.”. “Our capital planning for 2020 shows that at a $50/bbl WTI price and similar capital to the amount invested in 2019, Cimarex can generate 9% midpoint oil growth and generate free cash flow,” comments Tom Jorden, chairman and CEO of Cimarex. U. S. Energy Information Administration | Drilling Productivity Report 0 1,000 2,000 3,000 4,000 5,000 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 This website uses cookies. This is still not adequate, and companies are responding to close the gap. U. S. Energy Information Administration | Drilling Productivity Report 0 1,000 2,000 3,000 4,000 5,000 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 XTO Energy is the most active operator in the Permian Basin. Nichols tracks ozone levels in Eddy and Lea counties, the state’s top oil producing counties in the Permian Basin. Wells placed on production in 2020 are expected to be 40% Wolfcamp B, 40% Wolfcamp A, 15% Spraberry and 5% other formations, with an average lateral length of 9,800 feet. Avalon and Bone Spring wells round out the remainder of its planned Permian wells. The natural gas-rich Marcellus Shale of Pennsylvania has dethroned the oil-rich Permian Basin of West Texas at the top destination in the United States for hydraulic fracturing crews as … Permits ( February 12, 2021 - March 14, 2021). Pioneer plans to operate 23-24 rigs in the Permian in 2020 and place 345-375 wells on production by year’s end, mainly in the Wolfcamp A, Wolfcamp B and Spraberry formations. A total of 90 net wells are expected to begin producing by year’s end. Permian Basin Top 10 Operators 2016. “Gas take-away is still a problem in the Midland Basin, but we are fortunate,” Clark acknowledges. Five new oil pipelines are set to open in the Permian Basin through 2021, expanding a gap between production and takeaway capacity that’s already … The Permian Basin of west Texas and southeast New Mexico is one of the most prolific oil and gas producing regions in the country. How was Pioneer able to accomplish a 30% savings in well cost? At Waha hub pricing, sometimes we are only able to get $0.10 an Mcf for our produced gas. Five new oil pipelines are set to open in the Permian Basin through 2021, expanding a gap between production and takeaway capacity that’s already forcing companies … By transporting its gas and NGLs to higher-priced West Coast and Gulf Coast markets, compared with selling gas into the oversupplied Waha gas market, Dealy says, Pioneer realized an average price of $2.21/Mcf during the fourth quarter compared with the average Waha index price of $1.11/Mcf. Companies continue to race into the Permian, jockeying for acreage and buying up increasing positions in the world’s most popular unconventional basin. Stay in touch with the latest activities by subscribing to our daily email covering operators, service companies, (acreage, production rates, well info, development plans, resverse, and completions designs), US Rig Count Increases by 6; Rig Activity By Operator, Shell Appoints New Company Chairman; Details Other Board Changes, QEP Stakeholder Speaks Out Against Merger Deal with Diamondback, Battalion IDs 2021 Capital Plan; Production Flat, Summit Midstream Fourth Quarter, Full Year 2020 Results, Chevron to Acquire Noble Midstream in All-Stock Deal Worth $1.3B, See FULL list of Top 10 Permian Basin Operators by Rig Count, status, API, lease information, and legal description Rig Locations Map / Database: Updated Weekly Search and view rig locations by: operator, well name, county, state, and wellbore type Planned Drilling Programs Search for the number of wells planned to drill / complete, rigs, lateral lengths, and frac stages Active Operators >>, See FULL list of “Utilizing commodity prices of $50 a barrel WTI and $2.25 per MMBtu Henry Hub for the budget in 2020, the company expects to grow oil at a mid-single digit rate within cash flow and be in full development mode in Howard County by the end of the second quarter of 2020.”. More than 2,500 Subscribers rely on our data each day. What is the optimal spacing between laterals to minimize pressure interference between parent and child wells during hydraulic fracturing operations and avoid extending child well fractures into the stimulated reservoir area of parent wells? Ranking of counties in the Permian by # of new permits in 2020. In the final tab (“Top operators”) the production and positions are displayed for the 10 largest producers in the Permian. These higher selling prices were achieved mainly by having an average of 65% of oil production hedged. Permian Basin operator Parsley said its baseline budget assumption is … IHS Markit estimates that nearly 75% third-party disposal wells completed since 2016 are concentrated in the Delaware Basin (and 31% in Reeves County alone). He adds that Pioneer also is transporting its NGLs and gas from the Permian Basin to premium-priced markets, leading to an incremental benefit of $4 million during the fourth quarter and a full-year 2019 benefit of $283 million. “Then we moved to 10,000 feet. With the recent acquisition of Anadarko by Oxy, “Oxy has become the largest operator in terms of land holdings and production in the DJ Basin in Colorado and the Uinta Basin in Utah. For other great articles about exploration, drilling, completions and production, subscribe to The American Oil & Gas Reporter. Team Search Button. Development activity will be focused on the economic core of its top-tier Delaware Basin and Eagle Ford assets. However, despite that rich production history, its best days could lie ahead. Walker First Name Walker Last Name. During the second quarter of 2020, when the average spot price for West Texas Intermediate (WTI) was $27.81 per barrel of oil (bbl), only a third of the top 15 operators in the Permian Basin were able to receive a higher price than average. The company reports that two of its four active drilling rigs have been deployed to Howard County. Exxon Mobil Corp. (NYSE: XOM) is set to deliver the biggest increase in spending as it works to triple its Permian production by 2025. The Permian Basin is one of the oldest and most widely recognized oil and gas producing regions in the U.S. The acquisition increases the company’s working interest on its operated acreage from 83% to 95%, bringing Laredo’s Howard County leasehold to 8,380 net acres (99% operated). The Permian basin is among the most mature producing areas in the world. EOG Resources reduced its 2020 capital plans 31% to $4.3-4.7 billion. Sabalo’s fracturing treatments use a mix of local in-basin and out-of-basin sands, and rely on recycled water captured during post-fracturing well flowback operations, Clark says. The transaction increases Laredo’s operated inventory in Howard County to 130 gross (124 net) primary locations in the Lower Spraberry, Upper Wolfcamp and Middle Wolfcamp formations. Finally, some operators have chosen to exit the region and deploy capital elsewhere (e.g., Cimarex shifted capex to the Delaware Basin following the Resolute acquisition). Current WTI price is $15.50/bbl. Big factor in Permian growth During the second quarter of 2020, when the average spot price for West Texas Intermediate (WTI) was $27.81 per barrel of oil (bbl), only a third of the top 15 operators in the Permian Basin were able to receive a higher price than average. Horizontal well spacing remains one of the critical questions facing operators in the Permian Basin’s stacked resource plays because it directly impacts initial well productivities and long-term recovery rates. “We started out drilling 7,500-foot laterals,” he states. Top Operators. Interestingly, all of Pioneer’s oil production is sent to the Gulf Coast and 95% of it is being exported, according to Rich Dealy, executive vice president and chief financial officer. The Permian is an oil basin … The company is completing a six-well pad and plans to move to eight wells per pad targeting the Wolfcamp and Spraberry formations. In the fourth quarter, Laredo exceeded both oil and total production guidances for the fourth consecutive quarter, Pigott points out. The deal increases daily production by about a quarter for Oxy in the Permian Basin that spans Texas and New Mexico, where it was already the top overall producer. For full-year 2020, the company has hedges locked in on 90% of expected oil production, 40% of expected natural gas production and 25% of expected NGL production, the company reports. Top 5 Walkers Out of 45 Total. Sabalo Energy is drilling 15,000-foot laterals on its 22,000-acre leasehold in the Midland Basin. The accelerated growth in the Permian basin has generated a spike in disposal volumes. Combined with the lower costs, expected returns for the company’s approximately 150 Cline locations become increasingly competitive and extend Laredo’s inventory of oilier, higher-return opportunities.”. Joey Hall, executive vice president for Permian operations, says Pioneer plans to operate an average of 23-24 horizontal rigs in the basin in 2020, including five rigs in its southern joint venture area. These higher selling prices were achieved mainly by having an average of 65% of oil production hedged. The “Better Business” publication of the exploration, drilling, and production industry. In its fourth-quarter operations report, Cimarex noted that it has drilled 38 longer-lateral wells in Culberson County, Tx., 15 of which have been on production for 24 months with 400,000-barrel cumulative production. The end of the last decade saw some huge oil & gas takeovers, and the action is set to continue in 2020 with some potentially big deals in the Permian basin In the Permian Basin, the declines are mostly due to operators taking a more cautious stance in … In fact, according to Sheffield, the company ranks at the top of the list of operators flaring less than 2% of their total gas production. Now It Has Too Many. Laredo’s $450 million 2020 capital program, which includes $390 million for drilling and completion activities, is supported by a robust hedge position. News, Stebbins Expansion Crude Oil Pipeline Project, Diamondback Energy to Acquire QEP Resources, Earthstone Acquires PE-Backed Midland E&P for $182 Million, Contango to Acquire Oily Assets in Big Horn, PRB, Permian Basins, New PE-backed E&P Scores Permian Property, Rising Phoenix Acquires Permian Royalty Package, Ameredev Wins Bid for Lilis Energy's Permian Portfolio, Laredo Ups Ante in Howard County, TX; Bolts On Acreage, Tengasco, Riley Exploration Permian to Merge in All-Stock Deal, Latest News on the US, Canada and International plays, Tracking Activity on more than 4,000 companies (E&P, Midstream & Oilfield Services), Active Rigs By Company and County (Updated Weekly), 2015 & 2014 Company Detailed Drilling Budgets, Company & Play Break-Even, Type Curves and Well Economics. View All Companies. The average completed lateral length was 9,900 feet. Rystad figures show Exxon’s spending in the Permian rising from about $379 million in 2018 to more than $1.6 billion in 2020. The primary driver behind quarterly oil production exceeding expectations was the “outperformance” of the nine-well Sugg/Von Gonten pad, which Pigott reports is exceeding Laredo’s Upper/Middle Wolfcamp oil type curve by 39%. A privately held independent, Sabalo is running one rig on its 22,000-acre leasehold in Howard County. Top 5 Teams Out of 18 Total. The first of Laredo’s initial 15-well package in Howard County has been drilled successfully and completion operations were expected to commence on the full package during the second quarter, according to the company. USA, INC. 59,359,738 2 OCCIDENTAL PERMIAN LTD. 42,697,587 3 APACHE CORPORATION 30,098,087 4 XTO ENERGY INC. 25,279,187 5 COG OPERATING LLC 20,336,309 6 OXY USA WTP LP 19,121,487 7 KINDER MORGAN PRODUCTION CO LLC 18,647,309 The Basin produced a prodigious 29 billion barrels of oil since output began in 1921. The Permian Basin is one of the oldest and most widely recognized oil and gas producing regions in the U.S. Oil production is projected to average 91,000-97,000 bbl/d in 2020, up 9% year over year. - Permian Basin ... 18 of the Top 20 midstream companies by market capitalization were … Permian basin, focusing on the state of Texas. The Best-Performing Energy Companies Of 2020. Track new and recompletion permits by: well name, class, (Oil, Gas, etc) county, state, operator, permit date and, status, API, lease information, and legal description, Rig Locations Map / Database: Updated Weekly, Search and view rig locations by: operator, well name, county, state, and wellbore type, Search for the number of wells planned to drill / complete, rigs, lateral lengths, and frac stages. “I think it is important to have a target of less than 2%. We expect to retain the benefits of these improvements in our 2020 development program as we transition from our established acreage base to recently acquired tier-one acreage in Howard County.”. It leads the US in oil production and estimates put 43 billion bbl of oil still in the Permian; 80% of those reserves are believed to … The rest is dry gas and natural gas liquids. Rank Operator Name Crude Oil (BBL) 1 PIONEER NATURAL RES. Tulsa-based Laredo Petroleum Inc. completed 15 gross (13.1 net) Midland Basin horizontal wells during the fourth quarter of 2019 using a wider spacing development plan.

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