People who really know what they’re doing are going to make a fortune in this stuff, and the people who don’t know what they’re doing are going to waste a lot of capital. Drilling rights in the Permian Basin averaged $24K/acre in recent deals, down 67% from 2018, and the average price across all U.S. shale has plummeted to … The pandemic led to several states and countries enacting travel bans and other business restrictions intended to slow the spread of the virus. It encompasses several sub-basins, including the Delaware Basin and the Midland Basin. A mature ‘super basin’ located in Texas and New Mexico has set a new oil-production record, beating its previous peak set in 1973. Monthly Permian Basin Oil and Gas Magazine single copy price is $2. City Bank will make available a total of $60,000 to be awarded to 30 local nonprofits to assist them in carrying out their missions of hope and service to people in need. Austin oil company Parsley Energy is doubling down on drilling in the Permian Basin of West Texas. The Permian Basin is one of the most prolific oil and natural gas geologic basins in the United States. Maps. That remarkable growth in the Permian and elsewhere has made the U.S. the world’s top oil and natural gas producer, a far-fetched idea just 20 years ago. CURRENT REPORT. Permian Basin. Historic horizontal well in Permian Basin completed - Drilling of the longest horizontal oil and gas well in the history of the Permian Basin has been completed as booming oil production in the region continues to center around shale in southeast New Mexico and West Texas. Oil and gas rigs continued to climb in the U.S. following news that a vaccine for COVID-19 could be developed and available next year. The all time high for this statistics is 11. The problem with the Permian Basin isn't a lack of resources or pipeline capacity or low prices. View Comments. DrillingInfo has seen these kinds of deals as one of the factors that have led to a boom in what Gilmer refers to as "horse-trading" of acreage between producing companies: "Out there in the Permian, if you can get a 10,000-foot lateral your return will be a 3 to 7 PV10 multiple over what you get on a 5,000-foot lateral. The Gray Oak Pipeline stretches from the Permian Basin to delivery points at or near the Houston Ship Channel and capable for crude deliveries of 900,000 barrel per day. But more importantly, on a cumulative basis, the same amount of time it used to take to produce a nominal break-even per well was five years [in 2014], and today it’s 9 months. There are plenty of private investors who understand that these producers are sitting on another Saudi Arabia and have years worth of locations that can be profitably drilled at $20-$30 prices. June 23, 2020: Book review published. The Permian Basin – spanning west Texas and southeast New Mexico – has become the most prolific oil field in the world. The Fort…. It’s not buying bird’s nests on the ground, it’s not buying commodities. And right now, we are doing a land-office business in land in West Texas and Southeast New Mexico that, when you superficially look at it, nobody would expect...they would look at a map and say all the big blocks are already put together. Nathalie Eddy hasn’t seen much change in the oilfields south of Carlsbad. Subscribe. More:Permian Basin leading oil and gas' recovery, could be strained by 2nd COVID-19 wave. The Permian Basin is a large sedimentary basin in the southwestern part of the United States.The basin contains the Mid-Continent Oil Field province. EZ Rider to Receive New Buses. Most of it is economic at $40/bbl  - you just need to be able to go out there and do it the right way.". New Mexico was ranked 8th with about 5.7 billion cubic feet per day, records show. Permian Basin mandated back to 50% occupancy by Texas DSHS under Gov. Some … Get the latest Permian Basin Royalty Trust (PBT) stock news and headlines to help you in your trading and investment decisions. Permian Basin Royalty Trust Announces November Cash Distribution. It would have crossed 24 Texas counties and four parishes in Louisiana, moving up to 2.3 billion standard cubic feet of gas per day. Average per-well peak rates for the New Mexico Permian since 2014 have gotten better every year, averaging about 20% better every year. New Mexico climbed to 59 active rigs as of Dec. 4, growing from November’s average of 54, per data from Baker Hughes, but was still at barely half of its average of 103 rigs in December 2019. News. DALLAS, Nov. 19, 2020 /PRNewswire/ -- Simmons Bank, as Trustee of the Permian Basin Royalty Trust … Do these fundamental misconceptions about the nature of shale plays help explain why operators are finding their access to capital markets increasingly restricted? unconventional plays treat you fundamentally different. “I’m happy to mention that the energy demand in India, particularly of the petroleum products and natural gas, has returned to pre-Covid-19 level,” he said at the meeting. But as I also noted, that does not mean that, as some in the energy-related media are claiming, that the most active drilling basin in the world is "dying," "on its last legs," or even "peaking.". I-20 Getting 6 Lanes From 2025-30. SECURITIES AND EXCHANGE COMMISSION. The Permian Basin’s long history is characterized by ups and downs. To put some more meat onto the bone of that thesis, I was able to secure some time with Allen Gilmer, whose company, DrillingInfo, keeps close tabs on everything happening in the Permian and the country's other major play areas. in accounting in 1979. A drilling revival may soon be underway in the Permian Basin of West Texas where a flurry of permits for new horizontal wells have been filed. DALLAS, Nov. 19, 2020 /PRNewswire/ -- Simmons Bank, as Trustee of the Permian Basin Royalty Trust (NYSE: PBT) ("Permian") today declared a cash distribution to the holders of its units of beneficial interest of $0.013566 per unit, payable on December 14, 2020, to unit holders of record on November 30, 2020.. More:Here are the 7 oil and gas operators being sued by the New Mexico State Land Office. Investments in water midstream developments continued in the Permian Basin amid a growing need for water handling and recycling even as drilling operations … City Bank will make available a total of $60,000 to be awarded to 30 local nonprofits to assist them in carrying out their missions of hope and service to people in need. He attended Texas A&I University and The University of Texas, earning B.A.  to acquire New York private equity firm Stonepeak Infrastructure Partners bought Permian Basin-focused pipeline operator Oryx Midstream in a $3.6 billion deal in April. More. … Just a few thoughts… by PB Elite | Sep 24, 2018 | 0 Comments. As local coronavirus cases spike and Midland Memorial Hospital opens an additional COVID-19 wing to accommodate higher numbers of patients, … W.H. But it’s really all about this horse-trading to be able to go out there and trade acreage in two-, three-, and four-way trades to become capable of having high-grade locations that are valuable enough to drill in a world where oil prices are so volatile.". The basin contains the Mid-Continent Oil Field province. Stacked plays allow for multiple wells from a single pad location, using shared infrastructure. The golden age of U.S. shale is far from over, with an expected slowdown in the Permian Basin likely to be temporary, according to the new U.S. Energy Secretary. August 8, 2020. We are your go-to source for local news, weather and sports in the Permian Basin, powered by Big 2 News - KMID and Fox 24 News - KPEJ. This resulted in slumping oil and gas prices as consumers across the world used less fuel during the global health crisis. News & Events. Oil & Gas news: In the Pipeline; High school sports; Archives ; Home; News; Business; Permian Basin Drilling Report Top Story DRILLING REPORT: April 2 through April 8. News. So, bottom line, the Permian Basin is not "dying," "on its last legs," or "peaking." They will be danced straight into the ground unless some real wisdom emerges in those that call the music. "We are starting to see deterioration of those on the spacing side in the same zone, but those are tiny experiments that represent tiny fractions of the Permian Basin as a whole.". Adrian Hedden can be reached at 575-628-5516, achedden@currentargus.com or @AdrianHedden on Twitter. Continue Reading. DALLAS, Nov. 19, 2020 /PRNewswire/ -- Simmons Bank, as Trustee of the Permian Basin … Permian Basin Royalty News . Austin oil company Parsley Energy is about to mark 10 years of drilling the Spraberry formation of West Texas. Follow PBT. COPAS SOCIETY OF THE PERMIAN BASIN AREA. Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. SECURITIES AND EXCHANGE COMMISSION. David Blackmon is an independent energy analyst/consultant based in Mansfield, TX. © 2020 Forbes Media LLC. “As the third largest global energy consumer, I am confident that India will continue to remain a key global energy demand center, particularly for natural gas.”, More:New Mexico State Land Office cracking down state land misuse by oil and gas, others. Parsley is seeking permission from the […] Permian Region Drilling Productivity Report. Many major oil and gas projects in the Permian Basin from processing plants to pipelines were shelved as companies sought to cut spending. Gilmer's and DrillingInfo's findings on this question are also supported by the findings of another recent report, from Rystad Energy, which also finds per-well recoveries in the Permian continuing to grow during 2019, contrary to many analyst and media reports. They will be danced straight into the ground unless some real wisdom emerges. Yury Senyurin, secretary of the international Gas Exporting Countries Forum encouraged members during the 7th International Energy Forum (IEF) and International Gas Union (IGU) Ministerial Gas Forum held Dec. 3 by the Malaysian government. Three Decades after Oil Bust, Permian Basin Booms Again, San Antionio Express-News. It’s funny to me – I’ve had talks with several of these analysts in which they poo-poohed the technology that goes into drilling the wells, claiming it was just a question of how much sand you put in there and how long your lateral is. The Permian Basin is responsible for the greatest oil production gains in the U.S. in recent years. The text or links to all of David’s writings and podcasts can be found at www.dbdailyupdate.com. In a Dec. 1 letter to FERC, President of Permian Global Access Pipeline LLC (PGAP) Joey Mahmoud wrote that the present market conditions meant the project was not financially viable. Date of Report (Date of … Related to the same question, Gilmer also talked about the tendency of such critics to hyper-focus on a small subset of exploratory wells being drilled by many companies: "Are there areas where some operators have drilled aggressively trying to identify minimum spacing? All Rights Reserved, This is a BETA experience. What we’re seeing is that [Permian Basin] wells drilled this year are continuing the trend of being better than they were the year before, across the whole Permian – the New Mexico Permian and the Texas Permian. The loudest are typically the ones that really don't understand this. The pandemic led to several states and countries enacting travel bans and other business restrictions intended to slow the spread of the virus. This sedimentary basin is located in western Texas and southeastern New Mexico. Go to several different tryouts and weigh your options before choosing a club. FORM 8-K . Adrian Hedden . Absolutely," he said. It means the rate of growth, while still robust, is proceeding at a slower pace than it did during 2018, when the U.S. domestic industry added a record 2 million barrels of oil per day of production. Texas continued to lead the country in natural gas production averaging about 27 billion cubic feet per day as of September, per the most recent data from the Energy Information Administration (EIA) released on Nov. 30. The 625-mile line would have transported natural gas from Texas’ Waha Hub, where natural gas is sent from across the Permian Basin in West Texas and southeast New Mexico, to markets in southwest Louisiana. Washington, D.C. 20549 . For ExxonMobil, the Permian represents a significant growth area. Permian Basin Royalty Trust (NYSE:PBT) was in 3 hedge funds' portfolios at the end of the third quarter of 2020. It spudded a well in Reagan County, near Big Lake, Texas. Abrams drilled the first well in 1920, but it produced only 10 barrels of oil per day. FORM 8-K . The Federal Energy Regulatory Commission (FERC) first approved the request to begin the application process in September 2019, but more than a year later as energy markets struggled to recovery from the pandemic, the application to FERC was withdrawn. Contact. The Permian Basin is one of the oldest and most widely recognized oil and gas … News. Matador Production to pay $125,000 fine for oil 'commingling' violations after self-audit, Permian Basin leading oil and gas' recovery, could be strained by 2nd COVID-19 wave, Here are the 7 oil and gas operators being sued by the New Mexico State Land Office, U.S. Sen. Tom Udall continues push for oil and gas leasing reform, BLM: Oil and gas land sale moves forward in New Mexico amid calls to ban federal leasing, Thriving coronavirus, ailing oil industry leave Carlsbad residents struggling, New Mexico oil and gas operators report millions of gallons of water use, New Mexico State Land Office cracking down state land misuse by oil and gas, others, Your California Privacy Rights / Privacy Policy. Frankly, they can't get their heads around a demand-driven oil and gas industry rather than a supply-driven one.". “PGAP continues to believe that in time the proposed Project will provide significant benefits,” he wrote. Santa Rita taps Permian Basin, American Oil & Gas Historical Society. Owing to its economic importance, it is one of the most well-studied geologic regions of the world. 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