Unfracked oil wells growing as Permian pipeline scarcity worsens

[thackney]

Unfracked oil wells growing as Permian pipeline scarcity worsens
https://www.chron.com/business/energy/article/Unfracked-Oil-Wells-Growing-as-Permian-Pipeline-13013343.php
June 21, 2018

Pipeline bottlenecks in North America’s biggest oil field are so pervasive that drillers are quitting new wells at a record pace. And it’s about to get a lot worse.

The vast pipe networks that haul crude from the Permian Basin are almost completely full thanks to a production boom in the oil-rich area of West Texas and New Mexico that rivals Saudi Arabia’s Ghawar field in massiveness. Explorers who’ve been drilling feverishly to cash in on an OPEC-driven price rally are now slamming on the brakes to let pipeline owners catch up.

As a result, the number of Permian wells that were drilled but left unfinished surged to 3,203 last month, a 90 percent increase from a year earlier and the highest since the Energy Department began tracking them in 2013. Postponing fracking, the final stage of drilling, reduces the supply a company needs to ship to markets. The jump in unfinished wells is a harbinger of oil producers actually shutting down older wells....

[IsailedawayfromFR]

Maybe I will look at buying some speculative rental property in Corpus Christi.

The place will be growing quickly in years ahead.   Unlike Midland/Odessa, it is a beautiful, coastal town with outstanding weather so it will attract many.

[Joe Wooten]

Maybe I will look at buying some speculative rental property in Corpus Christi.

The place will be growing quickly in years ahead.   Unlike Midland/Odessa, it is a beautiful, coastal town with outstanding weather so it will attract many.

Whaddyamean? Just because Midland/Odessa have a few dust storms, a little heat and an occasional drought does not mean the weather's crappy........

[thackney]

Maybe I will look at buying some speculative rental property in Corpus Christi.

The place will be growing quickly in years ahead.   Unlike Midland/Odessa, it is a beautiful, coastal town with outstanding weather so it will attract many.

You might want to consider which one is driven more by the need for more people.

https://www.bls.gov/eag/eag.tx_midland_msa.htm

https://www.bls.gov/eag/eag.tx_corpuschristi_msa.htm

[IsailedawayfromFR]

You might want to consider which one is driven more by the need for more people.

https://www.bls.gov/eag/eag.tx_midland_msa.htm

https://www.bls.gov/eag/eag.tx_corpuschristi_msa.htm

I know Midland right now has low unemployment, but a few years ago it led the nation.

[thackney]

I know Midland right now has low unemployment, but a few years ago it led the nation.

You mean 20 years ago before they were using hydraulic fracturing in the Permian?  That genie is not going back in the bottle.  For the past decade, even when oil prices slipped low, Midland had unemployment rates below the national average.

Unemployment Rate: Midland (blue), Texas (black), National (grey)


If you are going to base business investment decision on 20 year old data, Corpus Christi wasn't doing so great for quite a few years back then.

Unemployment Rate: Corpus Christi (blue), Texas (black), National(grey)

[IsailedawayfromFR]

You mean 20 years ago before they were using hydraulic fracturing in the Permian?  That genie is not going back in the bottle.  For the past decade, even when oil prices slipped low, Midland had unemployment rates below the national average.

Unemployment Rate: Midland (blue), Texas (black), National (grey)


If you are going to base business investment decision on 20 year old data, Corpus Christi wasn't doing so great for quite a few years back then.

Unemployment Rate: Corpus Christi (blue), Texas (black), National(grey)

Gee, it is tough to make a blanket statement without checking it out more thoroughly when the fact checker is around.'

That data sure changed my erroneous conceptions of the economy of Midland, an oil center for many years.  Guess I have been reading too many gloom and doom articles about the oil patch.

[thackney]

Gee, it is tough to make a blanket statement without checking it out more thoroughly when the fact checker is around.'

That data sure changed my erroneous conceptions of the economy of Midland, an oil center for many years.  Guess I have been reading too many gloom and doom articles about the oil patch.

I think we have talked before how well the Permian did during the last down turn compared to many other areas.