Widespread consolidation has reshaped the list of top public producers, says Enverus CEO Manuj Nikhanj.
The Permian Basin’s core is in full-scale manufacturing mode, with smaller intrepid operators pushing the basin’s boundaries further and deeper.
Of the more than 70 horseshoe wells drilled to date, half came in the first nine months of 2024 as operators found 2-mile, single-section laterals more economic than a pair of 1-mile straight holes.
Private E&P Sage Butte Energy, which operates in the Powder River Basin, is less interested in the Permian Basin, citing the cost of entry.
The Eagle Ford lacks the growth profile of the Permian Basin, but thoughtful M&A and refrac projects are extending operator inventories.
Birch Resources has averaged 7 MMboe, 92% oil, from just 16 wells in the northern Midland Basin’s Dean Formation in an average of 15 months each, according to new Texas Railroad Commission data.
Shale Ingenuity’s SuperEOR, which has been field tested with positive results, looks to remedy the problem of production declines.
Operators wanting to grow oil inventory organically are finding promising potential as modern drilling and completion costs have dropped while adding inventory via M&A is increasingly costly.
Thaimar Ramirez, president and general manager for Occidental Petroleum’s Midland Basin Business Unit, said 100 days after closing the CrownRock acquisition production guidance keeps going higher.
Despite some initial resistance to the idea, Halliburton and Stanolind Oil pioneered the hydraulic fracturing that led to the shale boom.