EOG Resources Inc. said on Jan. 6 that it anticipates activity in the Permian Basin to be flat this year, as supplies and equipment remain expensive and as it focuses on shareholder returns.
Global oil supply will likely tighten this year, Chief Executive Ezra Jacob said at a Goldman Sachs conference in Miami, Florida, but he cautioned the demand outlook is currently more "difficult to see."
Oil prices started the year off with the biggest two-day fall in three decades amid growing concerns of a global recession, while natural gas prices slid 18% the first week of January as warmer-than-usual temperatures in the United States and Europe cut demand.
Jacob said he was constructive on natural gas prices for 2023 and bullish on U.S. gas prices from 2025 and beyond as LNG demand ramps up.
EOG has been developing the vast Dorado natural gas play in South Texas, and currently has exposure to some 140 MMcf/d of gas demand as LNG.
When Cheniere Energy kicks off Stage 3 of its Corpus Christi LNG plant in 2025 in Texas, EOG will have exposure to 720 MMcf/d of natural gas, 420 MMcf/d of which is linked to international pricing.
Recommended Reading
Huddleston: Haynesville E&P Aethon Ready for LNG, AI and Even an IPO
2025-01-22 - Gordon Huddleston, president and partner of Aethon Energy, talks about well costs in the western Haynesville, prepping for LNG and AI power demand and the company’s readiness for an IPO— if the conditions are right.
US Drillers Cut Oil, Gas Rigs for First Time in Six Weeks
2025-01-10 - The oil and gas rig count fell by five to 584 in the week to Jan. 10, the lowest since November.
US Drillers Cut Oil, Gas Rigs for First Time in Six Weeks
2025-03-07 - Baker Hughes said this week's decline puts the total rig count down 30, or 5% below this time last year.
US Oil, Gas Rig Count Falls to Lowest Since Dec 2021
2025-01-24 - The oil and gas rig count fell by four to 576 in the week to Jan. 24. Baker Hughes said this week's decline puts the total rig count down 45, or 7% below this time last year.
Hibernia IV Joins Dawson Dean Wildcatting Alongside EOG, SM, Birch
2025-01-30 - Hibernia IV is among a handful of wildcatters—including EOG Resources, SM Energy and Birch Resources—exploring the Dean sandstone near the Dawson-Martin county line, state records show.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.