The Permian Basin | March 2022
Located in West Texas, the Permian Basin has been producing oil for over 100 years. The Permian leads the US in oil production and analysts estimate that there is 43 Gbbl of oil still in the Permian; 80% of reserves in the basin 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
Active Drilling Rigs in Basin- 335 (+24)
Total Rigs in Texas- 345 (+34)
Total Rigs in United States- 698 (+48)
Total U.S. Rigs 16% YTD
Top Producer by BOE – Pioneer
Permian Permitting Data
Permits Approved – 504
LiDAR technology is slowly making its way into all sorts of industries, oil and gas companies are the latest to find useful applications for the new tech. Stringent emission regulations are spurring innovation in the way leak detection and repair is being done. New Mexico’s energy department approved the use of aerial Gas Mapping LiDAR technology within the state. According to the department “Operators can use the emissions detected by such technologies to earn credits that offset a portion of an operator’s total annual volume of lost gas.” The tech can also be used to help producers comply with new federally mandated EPA regulations and is bound to be popular in states across the country.
Producers in the Permian basin in Texas use the land they lease to not only extract precious commodities, but also to inject waste products such as salt water and carbon dioxide. Recent seismic activity in certain areas has made it apparent that injection wells can cause earthquakes up to magnitude 4.5 as seen in Stanton, West Texas last year. Operators asked the RRC to allow them to come up with a response plan. Injection wells in certain counties have been suspended until an adequate plan is in place. Should the operators’ plan fail, the RRC has stated it will have to intervene in the construction of a new one to curb further earthquakes.
Nuclear waste from energy plants around the country may have found their new home. Sites in both Texas and New Mexico where oil and gas operations are currently active may soon find themselves competing for land with companies such as Holtec International and Waste Control Specialists (WCS) who have been granted licenses to store the waste in the area. Thousands of metric tons of spent nuclear fuel rods would make their way to both sites, which some say could otherwise be used for producing oil in a time where the world market supply is decreasing. The Permian Basin Coalition is a group of dozens of counties, oil companies and other organizations spearheading the movement against these projects.
Operators with Highest Permitting
Top Producers By BOE—————————— –
|Change||Rank||Company||Production (mmBOE) (Jan-Feb/22)|
Counties with Highest Permitting
Texas Oil Production
Texas Gas Production
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