0
0

Permian Basin in the US, 2019 – Oil and Gas Shale Market Analysis and Outlook to 2023

Permian production continues to be the engine growth for US onshore hydrocarbon production. Production of crude oil and natural gas has grown each year from 2013–2018 despite the oil and gas industry going through one of the worst downturns during that period. As in other unconventional shale plays, operators in the Permian Basin continue to drill longer laterals beyond 9,000 feet and some reaching as much as 3 miles. The general objective remains to increase the productivity of the new producing wells in a higher proportion with respect to the cost increase associated with these more complex wells. The Permian has also seen a clear trend for larger scale operations of key operators that increases the surface of continuous acreage and allows for more recovery. This has also driven the M&A activity in the Permian with companies like Chevron, Diamondback Energy, and Concho Resources looking to expand their Permian footprint to drive greater efficiency and lower production cost. The limitations to gas pipeline capacity that gave rise to flaring is also expected to ease during 2019–2020, with approximately 4 billion cubic feet of pipeline capacity expected to be added during these two years, giving further lift to Permian production.

Scope

The report analyzes the oil and gas appraisal and production activities in the Permian Basin shale. The scope of the report includes:

– Comprehensive analysis of crude oil & condensate, and natural gas production across major counties in Texas and New Mexico during 2013–2018, as well as production outlook from 2019 to 2023

– In-depth information of well permits issued in the Texas region of the Permian Basin shale, by county and by company from January 2018 to February 2019

– Detailed understanding of IP rates and type well profiles in Delaware and Midland formations

– Exhaustive analysis of Permian Basin’s competitive landscape in terms of net acreage, gross production, cost trends and planned investments.

– Comparison of type well economic metrics of major players were also analyzed

– Up-to-date information on major mergers and acquisitions, and recent contracts in the Permian Basin shale between 2013 and 2019

– Overview of new and upcoming oil and gas pipelines in the pipelines in the Permian Basin

Reasons to buy

– Develop business strategies with the help of specific insights into the Permian Basin shale

– Plan your strategies based on expected developments of the Permian Basin shale

– Understand the competitive landscape of the companies in the Permian Basin shale

– Keep yourself informed of the latest developments and contracts in this attractive shale play

– Identify opportunities and challenges in the Permian Basin shale in the US

Table of Contents

1. Table of Contents 1

1.1. List of Tables 3

1.2. List of Figures 4

2. Overview 5

2.1. Permian Basin, Recent Developments and Trends 5

3. Permian Basin, Introduction 9

3.1. Permian Basin, Overview 9

4. Permian Basin, Production and Activity Overview 10

4.1. Permian Basin, Production Analysis by County, 2013–2018 10

4.1.1. Permian Basin, Gross Crude and Condensate Production by County, 2013–2018 10

4.1.2. Permian Basin, Gross Natural Gas Production by County, 2013–2018 12

4.2. Permian Basin, Production Outlook, 2019–2023 14

4.2.1. Permian Basin, Production Outlook, 2019–2023 14

4.3. Permian Basin, Drilling Activity, 2018 15

4.3.1. Permian Basin, Permits Issued and Completed, Texas 15

4.3.2. Permian Basin, Well Permits by County, Texas 17

4.3.3. Permian Basin, Well Permits by Company, Texas 18

5. Permian Basin, Competitive Landscape 20

5.1. Permian Basin, Major Companies by Acreage, 2018 20

5.2. Permian Basin, Major Companies by Net Production, 2018 22

5.2.1. Permian Basin, Initial Production Rates 23

5.2.2. Well Profile 25

5.3. Permian Basin, Future Plans by Major Companies 26

5.3.1. Permian Basin, Planned Investments, 2019 26

5.4. Permian Basin, Cost Trends, 2018 28

5.4.1. Permian Basin, Well Costs 28

6. Permian Basin, Analysis of Top Five Companies 29

6.1. Permian Basin, Economic Metrics of Major Players 29

6.2. Occidental Petroleum Corporation 30

6.2.1. Key Operational Parameters 30

6.3. Chevron Corporation 31

6.3.1. Key Operational Parameters 31

6.4. Pioneer Natural Resources 33

6.4.1. Key Operational Parameters 33

6.5. Concho Resources, Inc. 34

6.5.1. Key Operational Parameters 34

6.6. EOG Resources Inc. 36

6.6.1. Key Operational Parameters 36

7. Permian Basin, Associated Infrastructure 38

7.1. Pipelines 38

8. Mergers and Acquisition Activity in the Permian Basin, 2013–2019 40

8.1. Major Acquisitions 40

8.1.1. Occidental Petroleum made a proposal to acquire Anadarko Petroleum after the company had agreed a takeover from Chevron 40

8.1.2. BP acquired Petrohawk Energy from BHP 41

8.1.3. Concho Resources completed the acquisition of RSP Permian 41

8.1.4. Diamondback Energy acquired Energen 41

9. Recent Developments and Contracts in the Permian Basin, 2013–2018 45

9.1. Recent Developments 45

9.2. Recent Contracts 52

10. Appendix 54

10.1. Abbreviations 54

10.2. Methodology 54

10.2.1. Coverage 54

10.2.2. Secondary Research 54

10.3. Contact Us 55

10.4. Disclaimer 55

List of Tables

Table 1: Permian Basin, Crude Oil and Condensate Production by County, mbd, 2013–2018 11

Table 2: Permian Basin, Natural Gas Production by County, mmcfd, 2013–2018 13

Table 3: Permian Basin, Production Outlook, 2019–2023 15

Table 4: Permian Basin, Number of Drilling Permits Issued and Completed, Jan 2018 to Feb 2019 16

Table 5: Permian Basin, Number of Well Permits by County, Texas, Jan 2018 to Feb 2019 18

Table 6: Permian Basin, Number of Well Permits by Operator, Texas, Jan 2018 to Feb 2019 19

Table 7: Permian Basin, Net Acreage by Operator, 2018 21

Table 8: Permian Basin, Major Companies by Net Production, 2018 (mboed) 23

Table 9: Permian Basin, Major Companies by Initial Production Rates, 2019 24

Table 10: Permian Basin, Planned Capital Expenditure by Major Companies, 2019 (US$ Million) 26

Table 11: Permian Basin, Major Companies by Well Costs, 2018 28

Table 12: Permian Basin, Major Companies by Type Well Data, 2018 29

Table 13: Occidental Petroleum Corporation, Permian Basin, Key Operational Parameters, 2018 30

Table 14: Occidental Petroleum Corporation, Permian Basin, Key Economics, 2018 31

Table 15: Chevron Corporation, Permian Basin, Key Operational Parameters, 2018 32

Table 16: Chevron Corporation, Permian Basin, Key Economics, 2018 32

Table 17: Pioneer Natural Resources, Permian Basin, Key Operational Parameters, 2018 33

Table 18: Pioneer Natural Resources, Permian Basin, Key Economics, 2018 34

Table 19: Concho Resources, Permian Basin, Key Operational Parameters, 2018 35

Table 20: Concho Resources, Permian Basin, Key Economics, 2018 35

Table 21: EOG Resources Inc., Permian Basin, Key Operational Parameters, 2018 36

Table 22: EOG Resources Inc., Permian Basin, Key Economics, 2018 37

Table 23: Permian Basin, New Oil and Gas Pipelines, 2018–2022 39

Table 24: Permian Basin, Major Deals by Oil and Gas Companies, 2013–2019 42

List of Figures

Figure 1: Relation between Lateral Length and Breakeven Pricing for Major Operators in the Permian Basin, 2018 6

Figure 2: Permian Basin, Waha Hub Price Discount to Henry Hub, 2012–2019 7

Figure 3: Permian Basin, Natural Gas Production vs Gas Pipeline Capacity Addition, 2017–2025 8

Figure 4: Permian Basin, Crude Oil and Condensate Production by County, mbd, 2013–2018 11

Figure 5: Permian Basin, Natural Gas Production by County, mmcfd, 2013–2018 12

Figure 6: Permian Basin, Production Outlook, 2019–2023 14

Figure 7: Permian Basin, Permits Issued and Completed, Jan 2018 to Feb 2019 16

Figure 8: Permian Basin, Number of Well Permits by County, Texas, Jan 2018 to Feb 2019 17

Figure 9: Permian Basin, Number of Well Permits by Operator, Texas, Jan 2018 to Feb 2019 19

Figure 10: Permian Basin, Major Companies by Acreage, 2018 20

Figure 11: Permian Basin, Major Companies by Net Production, 2018 (mboed) 22

Figure 12: Permian Basin, Well Profile 25

    Pricing

Quick Buy
Add to basket Request sample pages

Discounts available for multiple report purchases.

reportstore@globaldata.com
+44 20 7947 2745

Join our mailing list

Saved reports

© GlobalData UK Ltd, a company registered in England and Wales, with company number 05968121 and registered address John Carpenter House, John Carpenter Street, London EC4Y 0AN. GlobalData UK Ltd is a wholly owned subsidiary of GlobalData PLC, with company number 03925319