MJ Logs’ Post

The Permian Basin: Driving U.S. Oil Production to New Heights The U.S. Energy Information Administration (EIA) projects that the Permian Basin will account for a staggering 50% of U.S. crude oil production by 2026. #PermianBasin #EnergyLeadership #OilAndGas #EnergyProduction #Innovation #petropeakinvest

A lack of pipeline capacity has kept natural gas prices negative in the Permian for almost half of 2024 so far. A new pipeline soon to come online is about to change that. The extra transport capacity could motivate shale producers to increase oil production--at a time when the world has a lot of the stuff coming out of the ground.

COLUMN: With prices falling sharply, now is the moment when common sense says the US shale industry should be slowing. Yet American oil output growth is about to reaccelerate. The reason? A new natural gas pipeline in Texas. Bloomberg Opinion #oil #Texas #Permian

Crude oil production in the U.S. Lower 48 (L48) states reached a record 11.3 million barrels per day (b/d) in November 2024. Crude oil production in the L48 states increased 3% year over year despite fewer active rigs in most major producing regions, demonstrating gains in operational efficiency. The active rig count decreased year over year in 2024 through November in all L48 primary crude oil producing regions except the Bakken. The region with the most activity, the Permian Basin, declined from 310 rigs to 303 rigs between November 2023 and November 2024. The active rig count for these regions, which includes the Permian, Eagle Ford, and Bakken, declined 18% to 389 rigs since the recent January 2023 high. Increasing well productivity is helping reduce companies’ production cost per barrel. Oil and natural gas companies are increasingly leveraging technological advances, including artificial intelligence, electronic hydraulic fracturing technologies, and automated drilling processes, to optimize operations while operating fewer rigs. This shift toward digital solutions has improved drilling and completion techniques and reduced rig downtime, and it provides advanced analytics to help target future operations. (Improved efficiency is enabling record U.S. crude oil production from fewer rigs – Today in Energy – EIA (U.S. Energy Information Administration) – December 23rd 2024) #oilandgas #oilandgascompanies #crudeoilproduction #oilproductionefficiency #activerigs #oilwellsproductivity #Permian #EagleFord #Bakken #PermianBasin

Negative pricing in #waha is a direct result of a lack of capacity to get #natgas to market, resulting in #flaring and #methane issues as well as increased #CO2 emissions. As long s #crude #oil stays high #associatedgas is a real issue and #ngls etc offset negative pricing with HIGH Crude Oil Margins. Rig counts may be falling - but are being compensated by the increased drilling activity for the #blackgold #texastea indeed... https://lnkd.in/ehapAfQj

PERMIAN BASIN: ANOTHER VIEW.....SLOWER GROWTH IN PRODUCTION BUT MORE WELLS? #PERMIAN #OIL #GAS #PRODUCTION #EFFICIENCY #DRILLING #SENSITIVITY #GLOBALTREND #ENERGY #OUTLOOK #WELLPRODUCTION https://lnkd.in/gbZY2eMs

EIA: Permian to fuel US shale output growth in May #oil #gas #oilandgas #naturalgas #investing https://reut.rs/3UqaISI

EIA: Permian to fuel US shale output growth in May #oil #gas #oilandgas #naturalgas #investing https://reut.rs/3UqaISI

US oil production from leading shale regions is set to reach a six-month high in June, according to the U.S. Energy Information Administration (EIA) in its latest Drilling Productivity Report. The EIA projects that production in the top shale basins will increase to 9.85 Mbpd, marking the highest output since December 2023. The rise in shale production, which accounts for roughly three-quarters of the total U.S. oil output, is attributed to enhanced well productivity. The Permian Basin, the largest U.S. oilfield spanning West Texas and New Mexico, is expected to see production per new rig increase to 1,400 bpd in June, up from 1,386 bpd in May. This would be the highest monthly output per rig since November 2021. Overall, Permian output is anticipated to rise by 17,970 bpd to reach 6.19 Mbpd. _______________________________
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The current price for natural gas in the Permian is almost negative $3 per per million British thermal units. So producers must pay that amount to have their gas taken away. Much of this gas is the associated gas that comes out of the oil wells. It's not like it is easy to make money producing oil in the Permian. Vicki Hollub is CEO of Occidental, one of the largest oil producers in the Permian and this is what she said about trying to make money there.  "The profitability of shale is much more difficult than people ever realized." Having to pay someone to take your associated gas makes it even more difficult. However, there has never been any penalty for simply flaring or venting that gas instead. It's understandable why this is such a common approach. It's smart business for a Permian shale oil operator. https://lnkd.in/ePdg-Cr5