Home » Posts tagged 'permian basic'

Tag Archives: permian basic

Olduvai
Click on image to purchase

Olduvai III: Catacylsm
Click on image to purchase

Post categories

Post Archives by Category

Another Blowout Adds to Mystery of Permian Basin Water Pressure

Another Blowout Adds to Mystery of Permian Basin Water Pressure

Water is bursting from another West Texas oil well, continuing a troubling trend.

Water flows from an orphaned oil well on Schuyler Wight’s ranch in Pecos County, Texas. Credit: Courtesy of Schuyler Wight
Water flows from an orphaned oil well on Schuyler Wight’s ranch in Pecos County, Texas. Credit: Courtesy of Schuyler Wight

In recent years, Schuyler Wight has noticed a growing number of abandoned oil wells coming back to life, gurgling fluids to the surface of his West Texas ranch. Last week he found the biggest one yet.

Gassy water was gushing from the ground and down a quarter mile of roadway before it drained into a pasture on a remote corner of his land.

“It’s by far flowing more than any other,” Wight said. “It’s getting worse, there’s no question about that.”

It’s the latest in a string of mysterious water features in the arid Permian Basin, the nation’s top producing oil field, that regulators have been unable to explain.

Last year, an eruption of salty water swamped several acres on Wight’s cousin’s ranch, triggering a multi-million-dollar cleanup. In 2022, a geyser shot up from a well in Crane County, then another spouted on the Antina Cattle Ranch. Nearby, a large pond of gassy groundwater has become a permanent feature called Boehmer Lake.

Texas’ oilfield regulator, the Texas Railroad Commission, has yet to offer an explanation for what is driving so much water to the surface. After the massive cleanup effort in January, an agency press release said it was “continuing to investigate” the cause. The Railroad Commission did not immediately respond to a query.

Wight, a fourth generation West Texas rancher, has watched this problem grow for years. He said the RRC has plugged about ten old wells leaking onto the surface of his property. But each time they do, another one starts flowing.

…click on the above link to read the rest of the article…

More Than 50% Of The Mighty Permian’s 2018 Oil Production Has Vaporized

More Than 50% Of The Mighty Permian’s 2018 Oil Production Has Vaporized

As dark clouds gather on the financial horizon, big trouble is brewing in the U.S. Shale Oil Industry.  While most Americans are focused on the Mainstream media’s coverage of the ongoing Washington D.C. circus, the real threat to the domestic economy lies in the country’s oil heartland.  And, if we look at what is taking place in the United States’ largest shale oil region, the signs are troubling.

The Permian Oil Basin in Texas and New Mexico accounts for nearly half (46%) of the total U.S. shale oil production.   According to the data from Shaleprofile.com, Permian’s oil production peaked in May at 3.43 million barrels per day.  Due to the massive decline rate, production in the Permian has stalled this year.

The chart below shows the Permian oil production declining even though more wells continue to be brought online.  Unfortunately, there aren’t enough wells being added to offset the tremendous decline rate.  You will notice how quickly the oil production that was added in 2018 (Light Blue color) has declined in just half a year:

To give you a better idea of the huge decline rate in Permian oil production, let’s only focus on 2018 and 2019 in the following charts.  But, before doing so, I wanted to let everyone know that this information would not be possible without the data from Shaleprofile.com.  I highly recommend that you check out Shaleprofile.com and consider subscribing to the service if you want to be able to access more details in the shale industry.  It’s worth its weight in gold.

Let’s look at the Permian oil production just for 2018.  Permian oil production for 2018 peaked in December at 2,136,000 bopd or 2,136K bopd, and declined to 1,056K by July 2019. That is a STUNNING 50.5% decline in just seven months:

 …click on the above link to read the rest of the article…

Permian Bottlenecks Come At The Worst Moment

Permian Bottlenecks Come At The Worst Moment

oil flaring

The growing number of supply outages around the world are causing the oil market to become a lot more volatile, putting extra emphasis on every barrel that does or does not make it to market. That makes the infrastructure bottlenecks in West Texas a global concern.

There is quite a bit of debate about what’s going on in the Permian, and whether or not the shale industry will be able to keep up with heady production forecasts. The IEA predicts the U.S. will add 1.7 million barrels per day in 2018, followed by another 1.2 mb/d in 2019.

Obviously, the bulk of that is expected to come from the Permian, and while the IEA acknowledges pipeline bottlenecks in the Permian, it has not significantly altered its supply forecast. “While producers are bumping up against pipeline bottlenecks, supplies will continue to rise through 2019,” the IEA said in its June Oil Market Report.

(Click to enlarge)

But by most accounts, the pipelines from the Permian to the Gulf Coast are either full or will be full in the next few months. That makes projections like the ones from places like the IEA look a bit optimistic, almost as if growth was simply extrapolated forward.

Others are more pessimistic. “We will reach capacity in the next 3 to 4 months,” Scott Sheffield, the chairman of Pioneer Natural Resources Co., told Bloomberg last month. “Some companies will have to shut in production, some companies will move rigs away, and some companies will be able to continue growing because they have firm transportation.”

The Permian has roughly 3.1 mb/d of takeaway capacity, plus local refining capacity. There is theoretically some 300,000 bpd of train capacity, but a lot of that is being used to move frac sand, according to S&P Global Platts.

…click on the above link to read the rest of the article…

Olduvai IV: Courage
Click on image to read excerpts

Olduvai II: Exodus
Click on image to purchase

Click on image to purchase @ FriesenPress