PERMIAN BASIN MAJORS DOUBLE DOWN AS HAY CRUNCH EASES

摘要

They may have arrived late to the shale soiree,but the super-majors have shown up with overflowing wallets,lofty production targets,and they're setting the tone for the next wave of development in the transcendent Permian basin.“The race doesn't go to the one who gets out of the starting blocks the fastest,” Chevron Corp.CEO Mike Wirth said on March 5,per Dow Jones.“The race goes to the one who steadily builds the strongest machine.” Over the next four years,the Chevron and ExxonMobil machines are gearing up separately to increase combined production to nearly 2 MM-boed from the Permian's smorgasbord of stacked pay targets beneath West Texas and southeastern New Mexico.For perspective,total Permian oil and gas production is estimated to reach 4.177 MMbpd and 14,075 MMcfd,respectively,in April,according to the U.S.Energy Information Administration(EIA),Fig.1.Between them,Chevron and ExxonMobil sub-sidiary XTO Energy are running nearly 70 of the 463 rigs that Baker Hughes,a GE Company reported as active during March,up from the average 438 active rigs in March 2018.