Permian – update through January 2020

December oil production came in at 4 million bo/d (after upcoming revisions), almost double the output compared with 2 years earlier (2.1 million bo/d). Natural gas production topped 14 Bcf/d, after growing even faster than the Marcellus in the last 2 years.

Permian – update through December 2019

December oil production came in at 4 million bo/d (after upcoming revisions), almost double the output compared with 2 years earlier (2.1 million bo/d). Natural gas production topped 14 Bcf/d, after growing even faster than the Marcellus in the last 2 years.

Permian – update through November 2019

The Texas RRC published production data early this month, and now most wells in the Permian are already reported through October in our subscription services. September oil production set another record, at around 3.8 million bo/d (after upcoming revisions). Natural gas production rose even faster in the past 2 years, to over 13 Bcf/d (switch “Product” to gas to see this).

Permian – update through October 2019

The Texas RRC published production data early this month, and now most wells in the Permian are already reported through October in our subscription services. September oil production set another record, at around 3.8 million bo/d (after upcoming revisions). Natural gas production rose even faster in the past 2 years, to over 13 Bcf/d (switch “Product” to gas to see this).

Permian – update through September 2019

The Texas RRC published production data early this month, and now most wells in the Permian are already reported through October in our subscription services. September oil production set another record, at around 3.8 million bo/d (after upcoming revisions). Natural gas production rose even faster in the past 2 years, to over 13 Bcf/d (switch “Product” to gas to see this).

Permian – update through August 2019

Preliminary data from the state agencies already has August production at a record high (see chart above). After revisions, especially for New Mexico, I expect that August production will be revised upward to about 3.7-3.8 million bo/d.

Permian – update through July 2019

Upward revisions for the summer months were relatively large in the production data that the RRC released last week. Based on the latest actual data, May production in the Permian (including New Mexico) was already at 3.5 million bo/d, which will increase further once all revisions are in. July, also shown here at 3.5 million bo/d, will probably be revised even more (as is common for more recent months), to around 3.7-3.8 million bo/d eventually.

Permian – update through June 2019

June production came in at just over 3.3 million bo/d, which after upcoming revisions will get close to 3.5 million bo/d. That would represent a growth of about 200 thousand bo/d in the first 6 months, which is significant, but well under the growth rate in the past 2 years.

Permian – update through May 2019

The chart above shows the almost 15-fold increase in oil production from horizontal wells in the Permian, in the last 6.5 years. Preliminary May production came in at just over 3.3 million bo/d, which will probably rise to close to 3.5 million bo/d once all revision data is in. Gas production from these wells is already over 11 Bcf/d (switch ‘Product’ to gas)

Permian – update through April 2019

With more revision data in, it is clear that a new record was set in March, at about 3.4 million bo/d. I expect that April production will eventually come in close to this level as well. Gas production is rising even more steeply, with over 11 Bcf/d produced in March (switch ‘product’ to gas to see this). Given that the gas/oil ratio rises over time for most of these wells, we expect that this trend will continue.