Six Formations Boost Permian Production
Six formations within the Permian Basin region in Texas and New Mexico have provided the bulk of the basin’s 60 percent increase in oil output since 2007, positioning the Permian as the largest crude oil producing region in the United States, the U.S. Energy Information Administration (EIA) reported Wednesday.
Permian Basin oil production has grown from a low point of 850,000 barrels per day (bpd) in 2007 to 1,350,000 bpd last year, EIA reported. The growth has largely resulted in oil production in Permian Basin counties exceeding production from the federal offshore Gulf of Mexico since March 2013. Last year, the Permian Basin accounted for 18 percent of total U.S. crude production.
The recent growth in Permian crude production has come primarily from six low-permeability formations, including the Spraberry, Wolfcamp, Bone Spring, Glorieta, Yeso, and Delaware formations. The Spraberry, Wolfcamp and Bone Spring formations have played a significant role in boosting Permian production, comprising almost three-quarters of the increase in Permian crude production.
Production from these formations have driven the increase in horizontal oil drilling in the Permian in recent months, EIA reported earlier this year.
Collective production from these formations has grown from approximately 140,000 bpd in 2007 to an estimated 600,000 bpd in 2013; as a result, their share of total Permian production has grown from 16 percent to 44 percent. According to the EIA, initial well production rates from Spraberry, Wolfcamp and Bone Spring wells are comparable to those in the Eagle Ford and Bakken shale formations.
“Production from these formations has helped drive the increase in Permian oil production – particularly since 2009 – despite declining production from legacy wells,” EIA said in its July 9 Today in Energy brief.
In the past, oil production came from more permeable areas in the basin, but horizontal drilling applications and hydraulic fracturing have opened up large, less permeable areas to commercial production, EIA reported.
12
View Full Article
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- ExxonMobil Racks Up Discoveries in Guyana Block Eyed by Chevron
- Oil Market Sentiment Has Improved Significantly
- EU, US Eye Collaboration on Nuclear Materials
- USA Driving Activity to Increase to All-Time Highs
- TC Energy to Sell Prince Rupert Gas Pipeline Project to First Nation
- EU Electricity Export to Ukraine Up 94 Percent in Two Years
- China Coal Output Falls for First Time since Government Ordered More
- BP Pulse Buys One of Europe's Largest Truck Stops
- UK CCUS Plans Outdated: Think Tank
- North America Enters Rig Loss Streak
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- EIA Drops 2024 Henry Hub Gas Price Forecast
- EIA and Standard Chartered Offer Up Latest Oil Price Predictions
- Red Sea Region Sees Another Watershed Incident
- Chevron Oil Project in Kazakhstan to Cost $48.5B
- OPEC Voices Encouragement after IEA Affirms Support for Oil Security
- Biden Govt Bares Strategy for Freight Charging, Hydrogen Fueling Infra
- Ukraine Hits Third Russian Refinery In Escalating Drone Strikes
- Rystad Looks at the Buzz Around White Hydrogen
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Is Peak Oil Demand Close?
- Vessel Sinks in Red Sea After Missile Strike
- JP Morgan, Standard Chartered Reveal Latest Oil Price Forecasts
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Rystad Forecasts Net Production of Top Permian Producers in 2024
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension