Permian drilling surge drives U.S. oil rig tally to record


A drilling surge in the Permian Basin appears to account for this week's increase in the U.S. oil rig count, which jumped by 13 to a record high 1,443 in the latest tally by Baker Hughes (BHI).

“While it’s one of the oldest fields in the U.S., there are multiple producing formations there, and companies are learning how to optimize horizontal drilling in them," WTRG Economics' James Williams says. "The growth is evidence that they’re figuring it out."

Indeed, as Permian crude production per rig is expected to climb to 98K bbl/day this month, up from 83K a year ago, according to the U.S. Energy Department.

While Pioneer Natural Resources (PXD), for example, is drilling in a 300-ft. thick shale shale formation in Texas' Eagle Ford play, the Permian offers shale depths of 3,500 ft., “so this is why this area has really substantial running room going forward,” COO Timothy Dove says.

Other top Permian producers: CXO, APA, COG, CVX, OXY, EGN, END.

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Comments (6)
  • hornucopia
    , contributor
    Comments (210) | Send Message
     
    I think you're numbers are off. If I take your numbers, the basin will produce over 50 million bbls. in a year, which is over 10 times the peak US production number from the record year in 1971.
    7 Mar 2014, 09:47 PM Reply Like
  • aeroguy48
    , contributor
    Comments (867) | Send Message
     
    Also PXD is mainly in the Permian not the Eagle Ford.
    7 Mar 2014, 11:21 PM Reply Like
  • Hendershott
    , contributor
    Comments (1734) | Send Message
     
    According to the IEA, the US is producing 7.5-8 million barrels a day and at least 1.3 million barrels a day comes from the Permian. A lot more than 50 million barrels a year.
    8 Mar 2014, 02:28 PM Reply Like
  • Maobama
    , contributor
    Comments (471) | Send Message
     
    According to the Texas RRC, Permian Production averaged 966,399bbls/day in 2013.
    8 Mar 2014, 08:45 PM Reply Like
  • Hendershott
    , contributor
    Comments (1734) | Send Message
     
    IEA and the Texas RRC never seem to have the same numbers for some reason but the IEA has the Permian producing over 1.3Mb/d in the last two months of 2013. I've never figured out why the two differ but the trend is the same in both.
    9 Mar 2014, 11:34 AM Reply Like
  • creloans
    , contributor
    Comments (117) | Send Message
     
    Not liking crude piling up at the Gulf at current production rates. Looks like a good point to put on some insurance on Permian E&P stocks or sell and take YTD profits. I would look for the Permian E&P companies guys to ease much more over a short period if Russian fears fade.
    28 Apr 2014, 05:14 PM Reply Like
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