The Permian Basin | March 2021
Located in West Texas, the Permian Basin has been producing oil for over 100 years. 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 be at less than 10,000 feet. Some top formations are the Wolfcamp, Upper/Lower Spraberry, and the Leonard.
State Drilling Statistics (End of March)
Active Drilling Rigs in Basin- 221
Total Rigs in Texas- 205
Total Rigs in United States- 417
Total U.S. Rigs down 43% YTD
Permian Top Producers
Top Gas Producer – Cimarex Energy
Top Oil Producer – Diamondback Energy
Permian Permitting Data
Permits Approved – 666
Pilot Water Ups Its Disposal Game With Felix Deal
Pilot Water Solutions has expanded its position as a major disposal player in the Delaware Basin of west Texas with its acquisition of Felix Water. The addition of the Felix assets will bring Pilot Water’s disposal-well count in the Delaware to 23. The combined company will also boast 210 miles of produced water pipeline and over 500,000 bbl of water per day of disposal capacity in the region.
Exxon and Chevron Dip Drilling Activity in Permian Basin Oil Field
Exxon Mobil and Chevron have reduced their drilling activity in Permian Basin oil field, the top U.S. shale oil field, after dominating in the high-desert landscape a year ago. The cautious approach of the two largest U.S. oil companies is a major reason domestic oil production has been slow to rebound since prices crashed during pandemic lockdowns in 2020. Production now is about 11 million barrels per day (bpd), down sharply from the record of nearly 13 million bpd hit in late 2019.
Permian Basin Methane Emissions Are Back at Pre-Pandemic Levels
Pollution from the Permian Basin dropped 60% from March to April last year as oil producers shut in wells and cut back on new ones due to tumbling crude prices, according to the non-profit Environmental Defense Fund. But methane emissions are now back at pre-pandemic levels as drilling ramps up. In order to combat these emissions, New Mexico has introduced legislation that will require at least 98% natural gas capture by the end of 2026. The new rules go into effect April 1st and will require quarterly reporting. These rules were drafted as a response to Governor Grisham’s request for nation-leading methane reduction rules. The state is hopeful that these new rules will provide jobs and revenue associated with gas capture.
Operators with Highest Permitting (March)
|Add. Permits |
Counties with Highest Permitting (March)
Top Gas Producers (2020 cum)——————————–Top Oil Producers (2020 cum)
Texas Oil Production
Texas Gas Production
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