What's Working, What's Not & What's Next for Permian Producers
At ~$40 WTI, West Texas' Permian could very well be the last basin standing. With superior wellhead economics and a deep bench of productive formations, the Permian Basin has become a safe haven for many E&Ps. But even the nation's most prolific oil province is challenged by the current downturn.
Armed with efficiency-focused technologies and strategies, producers are digging deep to protect margins.
If your business is oil and gas in West Texas, you can't afford to miss this year's DUG Permian Basin conference and exhibition! Thousands of industry professionals are converging in Fort Worth to hear from the region's most-active producers and midstream operators. Don't miss this once-a-year chance to explore the latest strategies and technologies with 35+ senior-level speakers and 100+ exhibitors.
Plays covered: Wolfcamp, Spraberry, Bone Spring, Leonard, Avalon, and Yeso
EVP, Permian Operations Pioneer Natural Resources
Q: How is your company navigating today's market challenges and capitalizing on opportunities?
A: Pioneer has the largest Spraberry/Wolfcamp acreage position with decades of drilling inventory. We are well positioned to weather the current low commodity price environment with a strong balance sheet, strong derivatives positions to protect cash flow through 2016, and a capital program funded through 2017 with no incremental debt required.
In response to the outlook for continuing weak oil prices, Pioneer is reducing its horizontal drilling activity by 50% while still growing 2016 production and preserving the company's strong balance sheet and cash position. Our Permian team has realigned to meet the challenges of this downturn and position itself to be the strongest operation in the basin when commodity prices return.
Free Exhibit Hall Access for Operators
Hart Energy invites employees at E&P companies, pipeline operators, refineries and utility companies to enter the DUG Permian Basin exhibit hall at no cost. Plus, you have the option to upgrade to a full conference pass to attend the 15+ conference sessions.
To submit your qualifying application and register, click here.
J. Ross Craft
Founder, Chairman, President and CEO Approach Resources
Chairman Petrie Partners
President Three Rivers Operating Co. LLC
President Matador Resources
Senior Vice President - Permian Basin EnLink Midstream
Rockies: Workover Prices Static In Face Of Increasing Demand Rising commodity prices are encouraging operators to venture back into the workover market in the Greater Rockies, or the Rocky Mountain market outside the Bakken Shale.The increase in oil prices early July have prompted greater activity in the Uinta Basin and Niorbrara Shale northeast of Denver in particular, according to Hart Energy’s Heard In The Field survey.Oil has since dropped due to an ongoing oversupply of crude and refined products. West Texas Intermediate crude futures were trading around $41 early on July 29, with Brent close behind at about $42.Operators are doing remedial work on wells previously shut-in because of low oil prices. Rod and tubing work make up 87% of job mix among survey respondents.Activity still remains low region-wide and less than half of survey respondents had been involved in a completion over the last 90 days.Drilling remains sporadic outside the Denver-Julesburg Basin though some wildcats are underway in the North Park and Powder River basins.Hourly rates were stable at an average $247 for the benchmark 500 series C workover unit. However, workover contractors expect rates to remain flat for the remainder of 2016, pending an increase in oil prices.Watch for the next Heard In The Field report on the Greater Rockies workover/well service market in December.