Learn more about Hart Energy Conferences
Get our latest conference schedules, updates and insights straight to your inbox.
U.S. oil and gas producers Diamondback Energy Inc and ConocoPhillips said on Dec. 7 the top U.S. shale field will face natural gas pipeline constraints as production grows and companies strive to reduce flaring.
While other U.S. oilfields are seeing production plateau, the nation's largest in the Permian Basin in west Texas and New Mexico is anticipated to continue to grow because of its low cost of output. The Permian's cost of production "is the lowest in the world right now," Tim Leach, a Conoco executive vice president, told the World Petroleum Congress in Houston.
Scott Sheffield, chief executive of top U.S. shale producer Pioneer Natural Resources Co. said the cost of production in the Permian has halved to $30 a barrel since 2014.
At the same time, operators are under pressure by investors and government regulators to reduce the flaring of excess natural gas, they said. Gas is less lucrative than oil and producers will flare, or burn it off, to get more oil.
"You don’t have a seat at the table today if you don’t have very aggressive environmental objectives," said Travis Stice, CEO of Permian producer Diamondback Energy, referring to investor concerns about emissions.
In 2019, producers across the Permian Basin flared and vented 293 Bcf of gas. Flaring has declined with pandemic cutbacks and as companies implement reduction measures, according to consultancy Rystad Energy.
"We’re all testing the latest surface sensor, methane sensors… we’re doing flyovers, were using satellite data," said Pioneer Natural Resources' Sheffield, describing emissions countermeasures.
Recommended Reading
CERAWeek: Tecpetrol CEO Touts Argentina Conventional, Unconventional Potential
2024-03-28 - Tecpetrol CEO Ricardo Markous touted Argentina’s conventional and unconventional potential saying the country’s oil production would nearly double by 2030 while LNG exports would likely evolve over three phases.
DUG GAS+: Chesapeake in Drill-but-don’t-turn-on Mode
2024-03-28 - COO Josh Viets said Chesapeake is cutting costs and ready to take advantage once gas prices rebound.
CERAWeek: Trinidad Energy Minister on LNG Restructuring, Venezuelan Gas Supply
2024-03-28 - Stuart Young, Trinidad and Tobago’s Minister of Energy, discussed with Hart Energy at CERAWeek by S&P Global, the restructuring of Atlantic LNG, the geopolitical noise around inking deals with U.S.-sanctioned Venezuela and plans to source gas from Venezuela and Suriname.
Exclusive: Chevron Balancing Low Carbon Intensity, Global Oil, Gas Needs
2024-03-28 - Colin Parfitt, president of midstream at Chevron, discusses how the company continues to grow its traditional oil and gas business while focusing on growing its new energies production, in this Hart Energy Exclusive interview.
Baltimore Port Closure Could Dent US Coal Export Volumes, EIA Says
2024-03-28 - Baltimore handled exports of 28 million short tons last year, making up 28% of total U.S. coal exports.