Increased Permian Production Helped US Crude Levels Surpass Forecasts

Posted by Kayrros


Kayrros global field monitoring revealed aggressive growth in the Permian Basin in March 2018, which will likely reduce its capacity problems sooner than expected. 
  • Texas oil production grew in March 2018 largely driven by the Permian Basin, although the Eagle Ford also contributed.
  • Cumulative production grew for all the top producing operators in Texas. 
  • Relatively few operators saw overall month-on-month declines.
  • The EIA report that the Permian has seen a record number of fracs in March 2018 at 444, however well potential in each of the sub-basins has plateaued.
  • In contrast, Eagle Ford well potential is at an all-time high while activity has remained relatively flat.

    The number of fracs-per-month in the Permian has grown by over 100 in the past 6 months. This corresponds to a month-on-month increase of 17 fracs-per-month since September 2017.

    EOG Resources was of particular interest, adding a significant amount of production, while Pioneer had three consecutive months of growth since a major decline in production in December 2017. Martin and Loving also had a combined month-on-month growth.

    Large growth was not expected to be sustained into March following the growth in February that compensated for the muted growth of the cold winter months.

    Kayrros data show that takeaway capacity will be reached in the Permian Basin by summer 2018 should production continue to grow at current rates.

Oil and GasOilgasUS Oil SandsPermian BasinPermianFrackingfrac sandFractureHydraulic FracturinghydraulicConcho

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