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  1. Oil & Gas News: Recent OPEC agreement reflected in EIA forecast issued earlier this week

    In EIA’s December Short-Term Energy Outlook (STEO), both the West Texas Intermediate (WTI) and Brent crude oil 2017 price forecasts increased by about $1 per barrel (b) from the November STEO, with prices expected to average $51/b and $52/b, respectively. The WTI price is forecast to average $49/b in the first half of 2017 and end the year at $54/b, while the Brent price is forecast to average $50/b in the first half of 2017 and end the year at $55/b. The forecast includes consideration of the Organization of the Petroleum Exporting Countries’ (OPEC) recent announcement to reduce production. However, the agreement only resulted in small changes to the STEO forecast. At the November 30 OPEC meeting, member countries agreed to reduce production by approximately 1.2 million barrels per day (b/d) from an October baseline and to lower OPEC’s production ceiling to 32.5 million b/d beginning January 1, 2017. The agreement is meant to last six months with an option to extend for an additional six months. EIA adjusted the December STEO by reducing OPEC’s crude oil production by 100,000 b/d in the first quarter of 2017 to 32.8 million b/d. The difference between OPEC’s and EIA’s production estimates reflects, in part, differences in production in Indonesia, Libya, and Nigeria, which are not participating in the agreement. OPEC’s agreed-upon output levels for early 2017 were similar to EIA’s November STEO forecast, and already included some expectation of slower production growth in 2017. Several non-OPEC producers also announced their intention to freeze or reduce production, with the agreement stating that non-OPEC countries will reduce production by 600,000 b/d. Trade press indicates that Russia will account for 300,000 b/d of this reduction, staged over the first quarter of 2017, but it is currently unclear where the other 300,000 b/d will come from other than modest reductions from some Persian Gulf nations such as Oman. Oil prices rose as the OPEC agreement came together and was announced. However, the extent to which the plans will be carried out and actually reduce supply below levels that would have occurred in its absence remains uncertain. A price recovery above $50/b could contribute to supply growth in U.S. tight oil regions and in other non-OPEC producing countries that do not participate in the OPEC-led supply reductions. Crude oil prices near $50/b have led to increased investment by some U.S. production companies, particularly those operating in the Permian Basin in Texas and New Mexico. Principal contributor: Matthew French

    Online Articles

    Online Articles

    Sat, 10 Dec 2016

  2. BHI: US rig count surges by 27 to 624

    The US rig count has recorded an increase of 20 or more units twice in the last 4 weeks, accelerating a drilling rebound that spans more than 6 months.

    Online Articles

    Online Articles

    Fri, 9 Dec 2016

  3. Chevron sets 2017 capital budget at $20 billion

    Chevron Corp. has cut its planned capital and exploratory investment program for 2017 by 15% from this year and 42% from 2015 to $19.8 billion, which includes $4.7 billion of planned affiliate expenditures.

    Online Articles

    Online Articles

    Thu, 8 Dec 2016

  4. BHI: Permian basin rig count up 101 since May 13

    The most attractive oil region in the US and perhaps the world has added more than 100 active rigs since last spring.

    Online Articles

    Online Articles

    Fri, 2 Dec 2016

  1. Medallion Midstream to build Delaware basin crude pipeline

    Online Articles

    Online Articles

    Tue, 6 Dec 2016

  2. Medallion Midstream to construct Southern Delaware Basin crude oil pipeline

    Medallion Midstream LLC and its affiliate, Medallion Midstream Services LLC, have entered into a letter of intent to construct a new Delaware Basin crude oil pipeline system to provide crude oil gathering and transportation services for Parsley Energy.

    Online Articles

    Online Articles

    Tue, 6 Dec 2016

  3. Occidental Petroleum makes Permian Basin acquisitions

    Occidental Petroleum has acquired producing and non-producing leasehold acreage in the Permian Basin from private sellers. Separately, the company acquired interests in several Permian Basin EOR and CO 2 properties, and related infrastructure.

    Online Articles

    Online Articles

    Tue, 1 Nov 2016

  4. Oil and Gas: Texas oil company looks to boost production in New Mexico

    A Texas-based oil and gas company has reached a $430 million deal that will clear the way for more production in southeastern New Mexico, providing a glimmer of hope as state officials look to rebound from depressed energy prices that have crippled government spending.

    Online Articles

    Online Articles

    Tue, 29 Nov 2016

  5. Oil Pirces: US consumers should feel muted impact from rising oil price

    OPEC's decision to cut production gave an immediate boost to oil prices, but the impact on consumers and the U.S. economy is likely to be more modest and gradual.

    Online Articles

    Online Articles

    Fri, 2 Dec 2016

  6. Stakeholder Midstream begins binding open season for San Andres Crude Oil Gathering System

    Stakeholder Midstream Crude Oil Pipeline LLC has commenced a binding open season with respect to a planned greenfield crude oil gathering and trunkline pipeline system referred to as the San Andres Crude Gathering System.

    Online Articles

    Online Articles

    Thu, 1 Dec 2016

  7. Occidental expands Permian basin interests

    Occidental Petroleum Corp. has acquired 35,000 net acres in the Permian basin horizontal drilling play and expanded its enhanced oil recovery holdings in the basin through transactions with private sellers totaling $2 billion.

    Online Articles

    Online Articles

    Tue, 1 Nov 2016

  8. BHI: US rig count records largest gain in 2½ years

    The US drilling rig count jumped 20 units to 588 during the week ended Nov. 18, according to Baker Hughes Inc. data. It’s the count’s largest increase since April 2014, several months before the beginning of a steep drilling dive that lasted a year and a half.

    Online Articles

    Online Articles

    Fri, 18 Nov 2016

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