Construction spree has led to more capacity than producers can meet.
Diamondback Energy, which closed its acquisition of Denver-based producer QEP Resources last month, also raised its 2021 capex forecast to between $1.6 billion and $1.75 billion versus its previous forecast of $1.35 billion to $1.55 billion.
The biggest increase is set to come from the Permian Basin, where oil output is expected to reach its highest since April 2020, the EIA said in a monthly forecast.
The largest change to the U.S. rig count in the last week was in the Anadarko Basin, where six rigs were added—all additions came from previously inactive companies firing up a rig.
Pinnacle Midstream founder Greg Sargent is confident in the Permian Basin and the industry’s ability to “conform and prosper as we always have” to new conditions and regulations.
The proposed extension of the system will gather crude oil from origination points in Eddy and Lea Counties, New Mexico and deliver to destination points also in Eddy and Lea Counties, New Mexico.
Slash Exploration LP retained EnergyNet for the sale of a Permian Basin opportunity in New Mexico’s Eddy County through a sealed-bid offering closing April 14.
The recently announced agreement by Pioneer Natural Resources to acquire DoublePoint Energy, with multiple private equity sponsors, also adds further indications of a shift toward private upstream activity, analyst says.
The combined oil and gas rig count rose two to 432 in the week to April 9, its highest since April 2020, Baker Hughes said in its weekly report.
EOG Resources Austin Chalk wells, Diamondback and Centennial completions in the Permian’s Delaware Basin plus more drilling planned by Shell at its Blacktip prospect in the U.S. Gulf of Mexico top this week’s oil and gas drilling activity highlights from around the world.