Author Topic: West Texas' Permian losing luster as companies look elsewhere  (Read 1847 times)

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Offline thackney

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West Texas' Permian losing luster as companies look elsewhere
« on: September 20, 2018, 04:45:30 pm »
West Texas' Permian losing luster as companies look elsewhere
https://www.chron.com/business/energy/article/West-Texas-Permian-losing-luster-as-companies-13244072.php
September 20, 2018

A new government report says that a lack of pipeline capacity in West Texas's Permian Basin oil field is forcing companies to look elsewhere to invest in drilling and production.

The Department of Energy report released Wednesday said companies operating in other oil and gas basins are redirecting their spending outside of the Permian, which stretches from Texas to New Mexico and is the top producing oil region in the U.S....

...The report says a lack of pipeline capacity and growing price differences between crude sold in Midland and the Gulf Coast are leading to companies spending money elsewhere. Oil in Midland, where oil supplies are high because they can't easily be shipped to Gulf Coast markets, was selling for  $20 a barrel less than along the Gulf Coast in August and September....
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Offline Absalom

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Re: West Texas' Permian losing luster as companies look elsewhere
« Reply #1 on: September 20, 2018, 09:58:04 pm »
It's offset by continuous breakthroughs in the Shale Basins of our North West.

Offline thackney

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Re: West Texas' Permian losing luster as companies look elsewhere
« Reply #2 on: September 21, 2018, 12:59:18 am »
It's offset by continuous breakthroughs in the Shale Basins of our North West.

Do you mean Amarillo or Pacific Northwest?

INTERACTIVE MAP RIG COUNT
https://ie.gis.connect.bakerhughes.com/rigcountweb/default2.aspx
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Offline MajorClay

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Re: West Texas' Permian losing luster as companies look elsewhere
« Reply #3 on: September 21, 2018, 02:04:28 am »
What is in the works to increase pipeline capacity?

Offline IsailedawayfromFR

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Re: West Texas' Permian losing luster as companies look elsewhere
« Reply #4 on: September 21, 2018, 02:33:03 am »
It's offset by continuous breakthroughs in the Shale Basins of our North West.
Care to tell the rest of us where these continuous breakthroughs are?

I know of only one Shale Basin with any size that has solid proven widespread development of liquids anywhere outside of Texas, the Williston Basin of North Dakota.

Everything else is either gas-prone or sporadic
« Last Edit: September 21, 2018, 02:34:06 am by IsailedawayfromFR »
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Offline IsailedawayfromFR

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Re: West Texas' Permian losing luster as companies look elsewhere
« Reply #5 on: September 21, 2018, 02:36:29 am »
West Texas' Permian losing luster as companies look elsewhere
https://www.chron.com/business/energy/article/West-Texas-Permian-losing-luster-as-companies-13244072.php
September 20, 2018

A new government report says that a lack of pipeline capacity in West Texas's Permian Basin oil field is forcing companies to look elsewhere to invest in drilling and production.

The Department of Energy report released Wednesday said companies operating in other oil and gas basins are redirecting their spending outside of the Permian, which stretches from Texas to New Mexico and is the top producing oil region in the U.S....

...The report says a lack of pipeline capacity and growing price differences between crude sold in Midland and the Gulf Coast are leading to companies spending money elsewhere. Oil in Midland, where oil supplies are high because they can't easily be shipped to Gulf Coast markets, was selling for  $20 a barrel less than along the Gulf Coast in August and September....
Rather than being a negative, this is an extreme positive.

My years in the oil patch, it was always one's dream to have the tanks we built not big enough to handle the oil.

Great problem to have, and certainly short-term.
No punishment, in my opinion, is too great, for the man who can build his greatness upon his country's ruin~  George Washington

Offline Absalom

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Re: West Texas' Permian losing luster as companies look elsewhere
« Reply #6 on: September 21, 2018, 05:20:58 am »
Care to tell the rest of us where these continuous breakthroughs are?

I know of only one Shale Basin with any size that has solid proven widespread development of liquids anywhere outside of Texas, the Williston Basin of North Dakota.

Everything else is either gas-prone or sporadic
[/quote}
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Offline thackney

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Re: West Texas' Permian losing luster as companies look elsewhere
« Reply #7 on: September 21, 2018, 11:29:21 am »
Rather than being a negative, this is an extreme positive.

My years in the oil patch, it was always one's dream to have the tanks we built not big enough to handle the oil.

Great problem to have, and certainly short-term.

I don't think that dream included selling for $20 discount because you could not efficiently get it to market.
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Offline IsailedawayfromFR

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Re: West Texas' Permian losing luster as companies look elsewhere
« Reply #8 on: September 21, 2018, 12:09:04 pm »
I don't think that dream included selling for $20 discount because you could not efficiently get it to market.
Short-term.

The discount will go away soon.

As I said, it is a good dream to have, overflowing tanks.
No punishment, in my opinion, is too great, for the man who can build his greatness upon his country's ruin~  George Washington

Offline IsailedawayfromFR

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Re: West Texas' Permian losing luster as companies look elsewhere
« Reply #9 on: September 21, 2018, 12:20:17 pm »
Care to tell the rest of us where these continuous breakthroughs are?

I know of only one Shale Basin with any size that has solid proven widespread development of liquids anywhere outside of Texas, the Williston Basin of North Dakota.

Everything else is either gas-prone or sporadic
[/quote}
---------------------------------
Great River, Great Divide, Piceance and Unita.
Do you mean the Uinta?  It and the other basins you mention are very minor players when it comes to shale oil.  They combine for half the production than the Bakken and are not nearly as blanket geologically as is the Williston.  Means they are more hit and miss.

Don't get me wrong - glad to have them, but drillers are not likely to sink as much money into them as say the Eagleford or Bakken.

The rig count is low compared to those other plays.

See https://ie.gis.connect.bakerhughes.com/rigcountweb/default2.aspx
No punishment, in my opinion, is too great, for the man who can build his greatness upon his country's ruin~  George Washington