Permian Basin News Pulse September 2021

Posted: October 20, 2021

The Permian Basin | September 2021

Field Overview

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

Active Drilling Rigs in Basin- 263
Total Rigs in Texas- 243
Total Rigs in United States- 528
Total U.S. Rigs up 98% YTD

Top Producer by BOE – Pioneer

Permian Permitting Data
Permits Approved – 610


Basin Highlights

Exxon Begins Process To Certify Emissions Efforts in the Permian Basin

ExxonMobil has agreed to begin the certification process for natural gas generated at its Permian Basin facilities in Poker Lake, New Mexico, with the help of independent, nonprofit validator MiQ. The certification is intended to legitimize Exxon’s efforts to limit methane emissions from its upstream operations in the face of investor and environmental criticism, especially from activist hedge fund Engine No. 1, which won three seats on the company’s board earlier this year. Because of the vast range of technology solutions currently in place, scale benefits, proximity to adjacent markets, and expansion possibilities as New Mexico production grows, ExxonMobil chose Poker Lake as its first certification site.

Pioneer Natural Resources Sets Net-zero Target

Pioneer Natural Resources Co. set a net-zero emissions goal, which CEO Scott D. Sheffield claims will keep the major US shale producer as a “ESG leader.” Following the acquisitions of Parsley Energy and DoublePoint Energy earlier this year, the business increased its acreage position in the basin to over 1 million net acres. “We are dedicated to reducing our emissions intensities, being proactive and transparent in our engagement with stakeholders and the communities in which we operate and ensuring our governance policies and performance metrics align with our ESG goals,” Sheffield highlighted in a company release.

Laredo Petroleum Acquires Pioneer Midland Basin Acreage for $230 Million

Laredo Petroleum Inc. agreed to pay $230 million in cash and stock for acreage in Glasscock County, Texas, marking the company’s second major acquisition in the Midland Basin in 2021. Laredo will purchase about 20,000 net acres from Pioneer Natural Resources Co. in its most recent transaction, which will immediately offset Laredo’s existing leasehold in western Glasscock County. Current production is roughly 4,400 boe/d (59% oil, 82% liquids).

ConocoPhillips Acquires Shell’s Permian Acreage

Royal Dutch Shell announced that it would sell its Permian Basin assets to ConocoPhillips for $9.5 billion in cash, exiting the country’s largest oilfield to focus on the clean energy transition. ConocoPhillips has made its second large acquisition in the heart of the US shale industry this year, as American and European producers debate whether to focus on hydrocarbons in the future. Shell, like the rest of the world’s top oil firms, is under pressure from investors to cut back on fossil-fuel investments in order to reduce global carbon emissions and combat climate change.

Diamondback Energy to End Routine Flaring by 2025

Diamondback Energy Inc. announced aims to eliminate routine flaring by 2025, as well as a multitude of activities targeted at improving the Permian Basin producer’s environmental standing. The new target builds on Diamondback’s previously announced “Net-zero Now” initiative, under which all hydrocarbon molecules produced by the company from January 1, 2021 forward will have zero net Scope 1 emissions, achieved through the purchase of carbon offsets, while the company’s Scope 1 emissions footprint is reduced. From 2019 to 2020, Diamondback claimed it had already cut flaring quantities on its Permian position by about 58 percent.


Operators with Highest Permitting

RankCompanyPermits
Approved
1Endeavor49
2Pioneer48
3OXY34
3Melbourne Oil31
5Diamondback28
Hyperlinks to available Q2 2021 Reports

Top Producers By BOE—————————— –

RankCompanyProduction (mmBOE) (6/21)
1Pioneer 177.6
2OXY 124.6
3Conocophillips 120.1
4EOG 122.2
5XTO 109.5
Hyperlinks to available Q2 2021 Reports

Counties with Highest Permitting

RankCompanyPermits
Approved
1Eddy77
2Reeves73
3Midland62
4Lea56
4Howard51

Rig Count


Texas Oil Production


Texas Gas Production


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The information contained in this newsletter is provided by RARE
PETRO Engineering, PLLC via the following sources unless otherwise
noted:

www.eia.gov
www.drillinginfo.com
www.bhge.com
RARE Petro Analytics

Related Tags: News Pulse | permian | texas

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