Samuel L. Hill’s 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

For the past decade, producers in the Permian Basin have been the driving force in domestic production growth, but lately there has been a hard-to-miss slowdown in incremental production rates for crude, gas and NGLs. In today’s blog, we will examine what’s to blame for plateauing production in the U.S.’s most prolific basin and gauge what it could mean for the rest of the U.S. energy sector. https://lnkd.in/dasBkxie

Do you know Where to Find Different Types of Natural Gas in the U.S? Natural gas is a hydrocarbon gas mixture predominantly composed of Methane (C1) – The primary component, accounting for 70-90% of natural gas. Ethane (C2) – Typically 5-15%, used as a petrochemical feedstock. Propane (C3) and Butanes (C4+) – Heavier hydrocarbons, often extracted and sold separately as LPG (liquefied petroleum gas). Inert Gases (CO2, N2) – Found in varying concentrations, requiring removal in processing. I want to extend this portion more, and I will do it in another post. For now check the image below… This is the Classification of Natural Gas and where is primarily located in the US. Conventional Non-Associated Gas: Found in traditional reservoirs and produced directly from the underground, not associated with oil production. Most are produced in the Gulf Coast (Texas-Louisiana-Mississippi Salt Basins) and the Anadarko Basin (Oklahoma). Conventional Associated Gas: Gas that is co-produced with crude oil. It can be dissolved in oil (solution gas) or exist as a gas cap above the oil in a reservoir. Most are produced in the Permian Basin (West Texas and Southeastern New Mexico) and the Eagle Ford Shale (South Texas). Rich Gas from Shale: Gas trapped in shale formations with a high content of natural gas liquids (NGLs) like ethane and propane, which require specialized processing. Most are produced in the Marcellus Shale (Appalachian Basin, Pennsylvania, West Virginia, Ohio, and New York) and Haynesville Shale (Louisiana and East Texas). Tight Sand Gas: Natural gas trapped in dense, low-permeability sandstone formations, requiring advanced extraction techniques like hydraulic fracturing. Most are produced in the Piceance Basin (Western Colorado), Uinta Basin (Utah), and Wind River Basin (Wyoming). Coalbed Methane (CBM): Methane found in coal seams, often extracted using water removal techniques to release the gas from the coal. Most are produced in the San Juan Basin (New Mexico and Colorado) and Powder River Basin (Wyoming and Montana).

Natural gas prices in the Permian Basin of Texas have plunged to negative territory as rising oil prices incentivize producers to bring online drilled but uncompleted wells. This surge in gas production, with limited takeaway capacity, is further depressing an already oversupplied market. The benchmark West Texas Intermediate crude oil price reaching $85 per barrel has enticed producers to keep pumping crude. However, these wells also produce natural gas as a byproduct, flooding the market with unwanted gas. With a lack of demand, producers at the Waha hub in Texas are even facing negative gas prices, meaning they have to pay to dispose of it. This situation is despite signs emerging that the gas glut might be impacting drilling activity in the Permian Basin. Analysts and industry executives suggest that despite high oil prices, U.S. producers are hesitant to significantly increase production due to the combination of low gas prices and rising costs, along with investor pressure for higher returns rather than increased output. MJ Logs - The Best Source for Raster Well Logs and LAS 🌐 mjlogs.com #MJLogs #WellLogging #Oil #Gas #OilProduction #GasMarket #WellCompletion #WTI #InvestorReturns #DrillingActivity

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

This morning there is a GREAT blog post from #RBN that discusses oil production in the Permian. As gas processing capacity in the area continues to expand, producers are still experiencing natural gas pipeline constraints to move the processed gas out of the region. While pipeline capacity may not be the entire driver of the reduced oil production in the basin, it definitely may be having a basin. While the opening of the Matterhorn pipeline is expected to drive increased oil production by allowing more natural gas to be transported out of the region - will it be enough of a long-term solution as we are seeing more "gassy" wells? TransTech continues to increase our capacity to deliver the required equipment to support gas processing. As we see an increased demand for LNG in the US as a transportable fuel, we are working on having LNG storage tanks in production to reduce the normal lead times for our clients' fast-track projects. www.transtechenergy.com mwenik@transtechenergy.com #lng #gasprocessing #natgas #oilandgas #crude #drilling #propane #lpg #butane #powergen #powergeneration #pipeline #permian #asme #terminal #cryogenic https://lnkd.in/e3jubiCq

U.S. oil output from top shale-producing regions will rise in June to its highest in six months, due to improved well productivity. #oilfield #oilandgas #oilgas #oilandgasindustry #oil #energyindependence https://lnkd.in/gbtPpjdq

Permian To Drive Two-thirds of US Oil Output Growth Through ‘25 – EIA The Permian Basin will drive U.S. oil production growth for the foreseeable future, according to the U.S. Energy Information Administration. But Permian associated gas growth continues to pressure the natural gas industry. Read more: https://lnkd.in/gwWXFATb

While not nearly in the same league as the powerhouse Permian Basin, the Bakken Shale, DJ, and Woodford Shale play an important role in U.S. energy production. While these basins mostly experience the same impacts that U.S. energy policy and geopolitical matters have on the primary U.S. basins, they each have unique characteristics that differentiate them from the larger basins and each other. We explore why these basins are still relevant to oil and gas production in this week's post. https://mer.cr/4j7UwA3