(Source: Shutterstock.com)
Weakening oil prices may induce Permian Basin operators to cut spending next year and hold production steady at 6.4 MMbbl/d, Enverus Intelligence Research said in a new research report.
That level of production suggests a 10% drop in the rig count, EIR said, as operators get more oil per rig thanks to longer laterals and better well performance. WTI futures have been trading at about $70 a barrel on Nymex, down from more than $85 in April.
A spending shift would also slow the growth in the Permian’s natural gas output, creating opportunities in other regions.
It would be “bullish for the Gulf Coast natural gas plays,” said Alex Ljubojevic, director at EIR. “Lower Permian natural gas growth would need to be offset by increased production out of the Haynesville and Eagle Ford dry-gas regions.”
Recommended Reading
Aris CEO Brock Foresees Consolidation as Need for Water Management Grows
2025-02-14 - As E&Ps get more efficient and operators drill longer laterals, the sheer amount of produced water continues to grow. Aris Water Solutions CEO Amanda Brock says consolidation is likely to handle the needed infrastructure expansions.
How DeepSeek Made Jevons Trend Again
2025-03-25 - As tech and energy investors began scrambling to revise stock valuations after the news broke, Microsoft Corp.’s CEO called it before markets open: “Jevons paradox strikes again!”
Halliburton, Sekal Partner on World’s First Automated On-Bottom Drilling System
2025-02-26 - Halliburton Co. and Sekal AS delivered the well for Equinor on the Norwegian Continental Shelf.
E&P Highlights: March 3, 2025
2025-03-03 - Here’s a roundup of the latest E&P headlines, from planned Kolibri wells in Oklahoma to a discovery in the Barents Sea.
TGS to Reprocess Seismic Data in India’s Krishna-Godavari Basin
2025-01-28 - TGS will reprocess 3D seismic data, including 10,900 sq km of open acreage available in India’s upcoming 10th Open Acreage Licensing Policy (OALP) bid round blocks.
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.