Permian – update through June 2020

This is an older blog post, you will find one on more recent data here

These interactive presentations contain the latest oil & gas production data from all 27,826 horizontal wells in the Permian (Texas & New Mexico) that started producing from 2008/2009 onward, through June.

Total Production

Oil production in the Permian recovered by over 200 thousand bo/d in June, to around 3.7 million bo/d (after upcoming revisions). An important reason for the increase was of course that operators brought wells back online, after oil prices improved from the terrible lows during the 3 months before.

Supply Projection

As of last week, 119 rigs were drilling horizontal wells in this basin according to Baker Hughes. Unless rig/well productivity will greatly increase, we project that this level is not sufficient to sustain current output, as you can find in our Supply projection dashboard:

The ‘Advanced Insights’ presentation is displayed below:

This “Ultimate recovery” overview displays the average production rate for these wells, plotted against their cumulative recovery. Wells are grouped by the year in which production started.

Finally

I am happy to announce that we launched the Ultimate version of ShaleProfile Analytics. All the really fun and interesting stuff (forecasts, economics and soon well spacing) is available in Ultimate. At the same time, we’ve updated our product pages; they contain much more information now about each service, including a detailed description of each dashboard in ShaleProfile Analytics.

We will have a new post on the Eagle Ford early next week, followed by one on Pennsylvania (which just released July production data, already available in our services).

Production and completion data are subject to revisions.

Note that a significant portion of production in the Permian comes from vertical wells and/or wells that started production before 2008, which are excluded from these presentations.

Sources

For these presentations, I used data gathered from the following sources:

• Texas RRC. Oil production is estimated for individual wells, based on a number of sources, such as lease & pending production data, well completion & inactivity reports, regular well tests, and oil production data.
• OCD in New Mexico. Individual well production data is provided.
• FracFocus.org

Brief manual

The above presentations have many interactive features:

• You can click through the blocks on the top to see the slides.
• Each slide has filters that can be set, e.g. to select individual or groups of operators. You can first click “all” to deselect all items. You have to click the “apply” button at the bottom to enforce the changes. After that, click anywhere on the presentation.
• Tooltips are shown by just hovering the mouse over parts of the presentation.
• You can move the map around, and zoom in/out.
• By clicking on the legend you can highlight selected items.
• Note that filters have to be set for each tab separately.
• The operator who currently owns the well is designated by “operator (current)”. The operator who operated a well in a past month is designated by “operator (actual)”. This distinction is useful when the ownership of a well changed over time.
• If you have any questions on how to use the interactivity, or how to analyze specific questions, please don’t hesitate to ask.

Enno Peters

Enno Peters is General Manager at Novi, where he has build an AI-driven data & analytics platform tailored for oil & gas operators and energy investors. Prior to Novi, Enno founded ShaleProfile which was acquired by Novi late 2021.