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
Founder, President and CEO Silver Hill Energy Partners
Chairman of the Board Energy Security Council
D-J, Uinta Basins See Minor Uptick In Drilling Rig rates may have bottomed for land drilling contractors, but there are mixed messages whether activity is rising in the Greater Rockies’ market.On the one hand, horizontal rig count in the Denver-Julesburg (D-J) Basin rose four units during the second quarter to 17 active. However, wells turned to completion since March 1 has been relatively static in the D-J Basin at 25 per month.Ensign Energy Services Inc. was the region’s most active driller in late July with six rigs active. This was one rig more than second ranked Helmerich & Payne Inc. (NYSE: HP).Regionally, the D-J Basin represented 52% of active rig count while the traditional directional drilling dry gas markets in the Greater Green River and Piceance basins accounted for 32% of activity.Of interest is the continuing exploration program in Jackson County, Colo., where Oklahoma stalwart SandRidge Energy Inc. turned two wells to completion over the last month in Colorado’s North Park Basin.SandRidge has been active in Niobrara Shale exploration since purchasing EE3 LLC’s assets for $190 million in November 2015.Rig rates are down roughly $1,000 dollars per day for AC-VFD units vs. January, though contractors tell Hart Energy rates appear have bottomed.Contractors also said they don’t expect rig rates to improve in 2016. Increased efficiency in drilling and completion means operators will need fewer rigs even if activity increases.Watch for the next Heard In The Field report on the Greater Rockies drilling market in December.
Utica Shale Activity Highlights: July 2016 Utica shale gas production in Ohio climbed first-quarter 2016 in spite of falling commodity prices.Gas production in the Utica averaged 3.6 billion cubic feet per day (Bcf/d) in the first quarter—up by 80% from 2015 volumes of 2 Bcf/d, according to the Ohio Department of Natural Resources.The increase in gas production can largely be attributed to new pipelines and pipeline access in the Appalachian Basin.