Total hydrocarbon production in the Delaware Basin-the Permian’s top-producing play-will hit a record 5.7 million barrels of oil equivalent a day on average in 2022, according to Rystad Energy research. Spurred by high oil prices and appealing horizontal well economics, total production is set to leap by nearly 1 MMboe/, roughly half of which will be new oil production.
In late April, the U.S. Department of Energy issued two long-term orders authorizing additional liquefied natural gas exports from two projects of the U.S. Gulf Coast: the Golden Pass LNG terminal in Texas, a joint venture between QatarEnergy and ExxonMobil, and the Magnolia LNG terminal in Louisiana, owned by the Glenfarne Group.
On May 4, natural gas prices on the New York Mercantile Exchange closed above $8.41/MMBtu. On the same day, crude oil closed at $107.81, extending a triple-digit pricing pattern experienced during a handful of times in the industry’s history: 1980, 2008, and 2011-14.
Sunny bottom-line results are amplifying the incentive for operators to fire up new-well drilling and development projects, while they re-examine existing inventories of producing assets to look for unrealized upside with refracturing.
Continuing to drag its feet on federal offshore oil and gas leases will cost Washington significant revenue, hurt employment and economic growth, and also sap U.S. energy output, warns a report jointly commissioned by the American Petroleum Institute and the National Ocean Industries Association
Delaware Basin Project Deploys Advanced Diagnostics To Analyze Stimulation Design
May 2022 Frac Facts
A research project at the Hydraulic Fracturing Test Site-2 (HFTS-2) in the Delaware Basin tested various completion schemes. The wells were instrumented with permanent fiber optic (FO) cable, and unique near-wellbore and far-field region surveys were acquired to evaluate spatial and temporal hydraulic fracture characteristics.