This is an older blog post, you will find one on more recent data here
This interactive presentation contains the latest oil & gas production data from all 31,497 horizontal wells in the Permian (Texas & New Mexico) that started producing from 2008/2009 onward, through May 2021.
Tight oil production in the Permian was flat at 4.0 million bo/d in May for the 2nd consecutive month (after revisions, horizontal wells only). Natural gas production most likely set a fresh record at over 16 Bcf/d in May (toggle product to ‘gas’).
As of last week, 235 rigs were drilling horizontal wells in the Permian (according to Baker Hughes). Our Supply Projection dashboard shows what would happen if drilling activity would stay at this level (the interactive version allows you to set your own assumptions):
The bottom chart shows that, all else being equal, output in the basin could slowly start growing again at this level, but that it would still take a while before the previous record would be topped.
In the 3rd tab of the presentation above (“Well quality”), you can analyze how well productivity has improved in the Permian Basin in the last few years, on average.
After normalizing production data for the increase in lateral length, we find that well performance has slightly deteriorated since 2016:
During these years, lateral lengths increased from 7 thousand feet (2016) to 9 thousand feet (2020), on average.
We will have a new post on the Eagle Ford early next week, followed by a post on Pennsylvania (which just released complete June 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.
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.
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.