Permian Basin ///

New Mexico’s Permian output rises – will a modest shale recovery follow?

New Mexico’s oil production surged to a record in May highlighting the Permian basin’s role as the shale industry sees some recovery from the pandemic.

A progressive approach: Why the Permian basin tells us all we need to know about methane emissions management

Ben Linke, Baker Hughes

Permian basin oil and gas companies are taking action and driving change—adopting technologies that not only reduce fuel and operational costs, but that also help reduce emissions and protect the planet.

Plains All American and Oryx Midstream form Permian Basin joint venture

The transaction will include all of Oryx’s Permian assets and, with the exception of Plains’ long-haul pipeline systems and certain of its intra-basin terminal assets, the vast majority of Plains’ assets located within the Permian Basin.

Gardner Denver’s new V3 valve improves performance in frac operations

Gardner Denver High Pressure Solutions has proven in field trials that its new V3 valve significantly increases performance hours in high pressure hydraulic fracturing operations.

Reveal Energy Services to commercialize ConocoPhillips’ hydraulic frac pressure diagnostic tech

Reveal Energy Services has entered into a technology licensing and development agreement to commercialize ConocoPhillips’ patented poroelastic response measurement [PRM] technology, and the companies will perform joint research and development in the PRM technology space.

ProFrac, U.S. Well Services team to reduce GHG emissions from frac fleets

ProFrac Services and U.S. Well Services, Inc. announced a license agreement to build and operate electric frac fleets using U.S. Well Services’ Nyx Clean Fleet technology. This will advance the environmental goals of the industry to reduce greenhouse emissions.

Devon Energy sets net zero 2050 emissions targets, ESG performance goals

Devon Energy announced it is establishing new environmental performance targets focused on reducing the carbon intensity of its operations, minimizing freshwater use, and engaging constructively with its value chain.

Boycott Texas oil, and Texas will boycott you, says Gov. Abbott with new law

Governor Greg Abbott signed a bill into law on Monday banning state investments in businesses that cut ties with the oil and gas industry. The underlying message, according to one of the most powerful energy regulators in the state, is simple: Boycott Texas, and we’ll boycott you.

Shell said to consider sale of largest oil field in the U.S., valued at up to $10 billion

The potential sale could include all of Shell’s 260,000 acres in the Permian Basin, Reuters reported citing unidentified people familiar with the matter. Shell declined to comment on Reuters’ report.

Oxy sells non-core Permian acreage for $508 million, reaffirms 2021 production guidance

The transaction, which is expected to close in the third quarter of 2021, includes approximately 25,000 net acres in the Southern Delaware Basin in Texas with current production of approximately 10,000 barrels of oil equivalent per day from about 360 active wells.

KKR plans more shale acquisitions after $5.5B Contango Oil & Gas deal

KKR is bucking the trend among private-equity peers that have been unloading shale investments after back-to-back oil market busts. The move may signal a bullish turn with U.S. crude prices heading for the best annual performance since 2015.

Fewer than 20% of U.S. shale oil jobs held by women, says trade group

Gender diversity remains a challenge in the U.S. shale patch, where fewer than two of every 10 jobs are held by women, according to the latest study by a trade group representing the hired hands of the oil field.

KKR’s Independence Energy, Contango Oil & Gas aim for $5.5B all-stock merger

KKR and Contango are doubling down on investing in exploration and production companies as many in the sector seek to recover from years of poor returns amid the shale boom and bust. The combination is said to allow the merged company to reach greater scale, boost access to capital and drive down the cost of production.

BP CEO sees lasting trends in global oil demand growth, limited U.S. crude output

Energy giant BP sees a strong recovery in global crude demand and expects it to last for some time, with U.S. shale production being kept in check, according to CEO Bernard Looney.

Rising steel costs bring inflation woes to U.S. shale plays

Costs for everything from labor to diesel to steel have climbed in the oil field this year as explorers return to work following last year’s pandemic-driven crash in crude prices. Steel prices for the drill pipe used in new wells could rise about 50% in 2021, Citigroup said.

Cabot-Cimarex merger puzzles both analysts and investors

The merger of Cabot Oil & Gas Corp. with Cimarex Energy Co. announced Monday has confounded investors and analysts, leaving them to question the logic behind a tie-up that the companies say will increase diversification. Cimarex is mostly an oil explorer in Texas and Oklahoma, while Cabot is focused on natural gas drilling in the Marcellus shale basin in Appalachia.

Monetizing Permian basin well data to optimize infill completions

Scott Taylor, Geraldine Haas, Sudhendu (Kash) Kashikar, Reveal Energy Services

A Permian basin operator applies a purpose-built completions interpretation platform to successfully develop three infill wells and realize up to 20% cost- savings on future completions designs.

Laredo Petroleum acquiring Sabalo Energy, partner for $715 million

Laredo Petroleum announced a purchase and sale agreement to acquire the assets of Sabalo Energy, a portfolio company of EnCap Investments, and a non-operating partner for about $715 million, and the sale of 37.5% of Laredo's operated PDP reserves in its legacy leasehold in Reagan and Glasscock counties to an affiliate of Sixth Street Partners for proceeds of $405 million.

Vitol near $1 billion-plus deal for Hunt’s Permian oil wells

Vitol Group is said to be near a purchase of Hunt Oil Co.’s Permian Basin oil wells in what would mark the biggest independent crude trader’s first major acquisition of U.S. production assets, according to people with knowledge of the matter.

Appalachian basin tops Permian as biggest methane emitting region in the US

Kayrros has released measurements quantifying the total methane emissions across the Appalachian Basin. The findings, derived from satellite data and proprietary algorithms, place the Appalachian Basin ahead of the Permian as the biggest source of methane in the US and identify the primary sources behind its emissions.