(Source: Shutterstock.com)
Weakening oil prices may induce Permian Basin operators to cut spending next year and hold production steady at 6.4 MMbbl/d, Enverus Intelligence Research said in a new research report.
That level of production suggests a 10% drop in the rig count, EIR said, as operators get more oil per rig thanks to longer laterals and better well performance. WTI futures have been trading at about $70 a barrel on Nymex, down from more than $85 in April.
A spending shift would also slow the growth in the Permian’s natural gas output, creating opportunities in other regions.
It would be “bullish for the Gulf Coast natural gas plays,” said Alex Ljubojevic, director at EIR. “Lower Permian natural gas growth would need to be offset by increased production out of the Haynesville and Eagle Ford dry-gas regions.”
Recommended Reading
Exclusive: Surge Energy Seeks Midland M&A with $1.3B in Dry Powder
2024-11-19 - Surge Energy is one of the largest private oil producers in the Permian Basin. With $1.3 billion in dry powder to put to work, Surge is scouring the northern Midland Basin for M&A, executive Travis Guidry told Hart Energy.
Devon Ups Delaware Basin Ante With 21-Well Pad, Secondary Zones
2024-11-06 - Devon Energy is producing record volumes from the Delaware Basin—its biggest asset—where the company drilled a 21-well pad targeting six different intervals in recent months.
CEO: Ovintiv Passes on Permian Prices for More Montney Condensate
2024-11-14 - Rumored to be a potential buyer in the Permian Basin, Ovintiv instead struck a deal for lower-cost oil and condensate assets in Alberta’s Montney Shale.
EOG Greenlights Second Rig to Ohio Utica Oil Wildcatting
2024-11-12 - EOG Resources has put 25 modern stimulated horizontals to date in the oily Utica fairway in eastern Ohio with one rig and IPs of up to 3,250 boe/d, 70% oil and 85% liquids.
Harold Hamm: ‘Drill, Baby, Drill’ Faces Geology Barriers, Even Under Trump
2024-11-18 - Harold Hamm, Continental Resources founder and major Trump donor, says the U.S. faces real barriers to expanding production growth—even with Republicans controlling D.C.—as major shale basins mature.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.