{"id":51376,"date":"2020-02-25T09:53:36","date_gmt":"2020-02-25T14:53:36","guid":{"rendered":"https:\/\/olduvai.ca\/?p=51376"},"modified":"2020-02-25T09:53:42","modified_gmt":"2020-02-25T14:53:42","slug":"to-manys-dismay-permian-produces-more-gas-and-condensate-instead-of-oil-and-profits","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=51376","title":{"rendered":"To Many’s Dismay, Permian Produces More Gas and Condensate Instead of Oil and Profits"},"content":{"rendered":"\n

To Many’s Dismay, Permian Produces More Gas and Condensate Instead of Oil and Profits<\/a><\/h3>\n\n\n\n
\"aerial<\/figure>\n\n\n\n

As oil prices plummet,<\/a> oil bankruptcies mount<\/a>, and investors shun the shale industry, America\u2019s top oil field \u2014 the Permian shale that straddles Texas and New Mexico \u2014 faces many new challenges that make profits appear more elusive than ever for the financially failing<\/a> shale oil industry.<\/p>\n\n\n\n

Many of those problems can be traced to two issues for the Permian Basin: The quality of its oil and the sheer volume of natural gas coming from its oil wells.<\/p>\n\n\n\n

The latter issue comes as natural gas fetches record low prices in both U.S. and global markets. <\/a>Prices for natural gas in Texas are often negative<\/a> \u2014 meaning oil producers have to pay someone to take their natural gas, or, without any infrastructure to capture and process it, they burn (flare) or vent (directly release) the gas.<\/p>\n\n\n\n

As DeSmog has detailed<\/a>, much of the best oil-producing shale in the Permian already has been drilled and fracked over the past decade. And so operators have moved on to drill in less productive areas, one of which is the Delaware sub-basin of the Permian. Taking a close look at the Delaware Basin highlights many of the current challenges facing Permian oil producers.<\/p>\n\n\n\n

Delaware Basin Producing More Gas Along With the Oil<\/strong><\/p>\n\n\n\n

The Delaware Basin is where most of the new oil production is coming out of the Permian. As a Bloomberg Wire story reported in December<\/a>, \u201cin recent years investments have shifted to the Delaware, where output is much gassier than in the historic Midland portion of the Permian.\u201d<\/p>\n\n\n\n

The last thing a Permian oil producer wants is to have natural gas coming out of the ground with the oil because, as Bloomberg notes, this persistent \u201cnuisance\u201d\u00a0is \u201cundercutting profits for explorers.\u201d That’s\u00a0a generous assessment because many explorers have\u00a0no profits to undercut<\/a>, only losses to\u00a0grow.<\/p>\n\n\n\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"

To Many’s Dismay, Permian Produces More Gas and Condensate Instead of Oil and Profits As oil prices plummet, oil bankruptcies mount, and investors shun the shale industry, America\u2019s top oil field \u2014 the Permian shale that straddles Texas and New Mexico \u2014 faces many new challenges that make profits appear more elusive than ever for the financially failing shale oil industry. […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,3,4],"tags":[5317,11782,554,3640,1980],"class_list":["post-51376","post","type-post","status-publish","format-standard","hentry","category-economics","category-energy-2","category-environment","tag-desmog-blog","tag-justin-mikulka","tag-natural-gas","tag-permian-basin","tag-profit"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/51376","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=51376"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/51376\/revisions"}],"predecessor-version":[{"id":51377,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/51376\/revisions\/51377"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=51376"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=51376"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=51376"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}