Exxon Mobil's purchase of Pioneer proves the Permian Basin is still the hottest hydrocarbon province on earth
So much for catastrophists forecast of depleted sources of oil which always ignore innovation and the human’s ability to adapt
Although the rig count is declining the industry still has developed uncompleted wells that are finally being fracked bringing in more production. The operators in the NM side of the Permian on federal lands are continuing to face hurdles thrown at them by the Biden Administration. It is interesting to note that the laterals on horizontal wells are reaching record levels to produce more oil which the Biden Administration cannot deter. The Permian basin is a very different basin with several zones that are capable of production. It's interesting to see one drill pad with 3 rigs drilling at the same time. One is drilling in the Delaware formation with several zones within the interval, one in the Bone Spring-Wolfcamp and one Morrow deep gas well.
The industry will find ways around the continuing restrictions being launched by Biden through the DOI director Haaland, who hasn't seen a pipeline she'd like to blow to smithereens. We watched as she protested against the Dakota Access Pipeline which is moving 500,000 bbl of crude a day. Now she is looking to insert Conservation leases with the oil and gas competitive lease sales in NM. This is another terrible decision that is breaking the law under the Minerals Leasing Act of 1920. If this passes after the public comment period these leases will be put up for sale and there will be no access across the acreage or development of reserves since these leases are certain to be contiguous to the oil and gas leases either existing before or auctioned in a current sale.
They know they are out of bounds on their continuing attacks against U.S. oil and gas production but as usual, the Biden Administration will proceed until they are stopped by SCOTUS and even then they'll find ways to circumvent and stop the development of oil and gas here in the U.S. Meanwhile, they promote and lift sanctions on Iran and Venezuela to produce more oil.
I found this footage from the latest climate conference I thought I would share
Build power plants and stop wasting money on ugly wind generators
Having grown up in Texas, many family and friends worked in the Permian Basin oil fields. That area, even though arid and sparsely settled, also has a rich history in the West Texas cattle industry. Like the cattle business, the oil business has had its ups and downs. It hasn’t been that long ago, before horizontal drilling was perfected, that people thought there was little more oil to be had in that area and further west into New Mexico.
Today’s amazing oil Renascence, in that area and others, has occurred because of technological advancements and innovative applications in drilling, recovery and transportation. Today, due to these capabilities and vastly improved discovery methods, some estimate that 10 times more oil resources exist world wide than thought sixty years ago. In reality, fossil fuels are nature’s greatest energy storage battery! It is difficult to understand why the most versatile and valuable energy source known to mankind is being demonized? Some even want to eliminate it…
OK, so PXD now belongs to ExxonMobil, what is expected to happen to PXD stock prices?
Robert, I have been following your podcast for awhile now, you are a VERY important source of up-to- date info about energy, not just hydrocarbons but nuclear which has vastly advanced technologically in recent decades. Keep it up, you are informative, timely and trustworthy.
A lot to say, but think about this the Permain Basin is so large & resource rich that New Mexico--which has a tiny corner of the basin--is the second largest producer at over 1 million barrels. Double what Alsaka-a state known for oil has. IHS Markit, a consulting and research firm, incidated the Permian Basin today has between 60 billion and 70 billion barrels of recoverable oil which is the same for Ghawar field, which gave Sadui all it's geopolitcial power. Let that sink in we have an Ghawar oil feild in America & all the free natural gas-from assoication-one can ask for.
Time to build an aquaduct from the Missouri River near Kansas City to the Permian Basin. Also, one from there to Austin/San Antonio, but that's another topic.
It's ridiculous that lack of water should limit anything we do.
Of course, it's also ridiculous that we just don't build improvements any more.
It's only about 600 miles. At $5 million/mile for aquaduct that's a bargain at $3B -- probably $10B in the real world, when it's all said and done...
Get some SMRs in there to add in those required electrons. Oil and nuclear industry doing a collab.
The universities who are divesting from unfashionable energy should take a close look at that $42 billion UT endowment.
Wow! The Permian has been an amazing source of hydrocarbons over many years. The horizontal drilling technology is also amazing but the continued production from this area brings to mind the (largely) discredited theory of the abiogenic origin of hydrocarbons as described in Thomas Gold's 2001 book 'The Deep Hot Biosphere - The Myth of Fossil Fuels'. I wonder if any studies have been done to see whether some oil deposits refill from the upwelling of oil from the deeper crust and mantle?
Kudos to Exxon for buying a quality asset. We’re talking about decades of drilling. The US has many more oilfields to exploit in Alaska and offshore if open them up. People need to understand that the laws of physics won’t allow us to totally eliminate using oil, so do we buy it locally for decades or eventually from Russia, Saudi, Iraq or Iran? The US also has more high quality coal than any country in the world yet we focused on shutting it down instead of cleaning it up. We are a blessed nation to be sitting on so many important energy sources. And I’m pretty sure we have abundant minerals for renewables if we’re allowed to mine them.
As we noted in our last post:
“Oil is “sticky” so to speak because it is extremely valuable to society. As such, it’s not likely to go anywhere anytime soon.”
Thanks for validating that statement, XOM.
Thank you, Robert Bryce for this very informative article!
How can I subscribe? I clicked on subscribe, but it said I can’t subscribe from this app. I like being informed about this topic of production of natural gas and fuel.
I think the lefts idea of “green energy” is really stupid and radical and we cannot rely on Socialist and Communist countries to supply our entire country.