Permian – update through October 2017


This interactive presentation contains the latest oil & gas production data from 13,324 horizontal wells in the Permian (Texas & New Mexico) that started producing since 2009/2010, through October 2017.

With output rising fast in Q3 2017, the Permian basin became the largest source of unconventional horizontal oil production in history, surpassing the previous high in the Eagle Ford early 2015. In October, total oil production (horizontal wells only) amounted to 1.7 million bo/d, before revisions. Amazingly, half of this came from wells that started in 2017, as you can see from the pink colored area above.

In the “Well quality” tab, the production profiles for all these wells are shown. Average well performance improved significantly from 2013 to 2016, and was again slightly better in 2017.

 

The ‘Advanced Insights’ presentation is displayed below:

 

 

This “Ultimate recovery” overview shows the average production rate for these wells, while they are heading towards their ultimate recovery. Wells are grouped by the quarter in which they started production (you can change this to year or month, using the ‘Show wells by’ selection).

To find out which operators had the best wells in a certain period, the 4th tab (‘Productivity ranking’) is useful. For example, by changing the period from 24 to 12 months, and setting the ‘Year of first flow’ to include only 2015 & 2016 wells, you will get a ranking of all operators based on the average first year cumulative production for the wells that started in these years. Going through the list, you’ll note that of the large operators (>100 wells), EOG, Cimarex, and Pioneer Natural Resources, had the best performance according to this metric.

I expect that by Saturday I will have a new post on the Eagle Ford. Production data is subject to revisions.

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Note that a significant portion of production in the Permian comes from vertical wells and/or wells that started production before 2010, 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 proration data.
  • OCD in New Mexico. Individual well production data is provided.
  • FracFocus.org

====BRIEF MANUAL====

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.