The Energy Information Administration has released updated maps and geologic information for the Bone Spring formation in the Delaware Basin. Thanks to hydraulic fracturing and horizontal drilling, the number of wells in the Bone Spring formation increased from 436 in 2005 to 4,338 in mid-2019, while oil production per well skyrocketed from 67 barrels per day to 770 bpd over the same period.
Low natural gas prices and high debt are taking a heavy toll on Appalachian drillers despite surging gas production, with five of seven companies analyzed in an Institute for Energy Economics and Financial Analysis report operating on negative cash flow in the third quarter. "Even though Appalachian gas companies have proven that they can produce abundant supplies of gas, their financial struggles show that the business case for fracking remains unproven," the IEEFA said.
The Eagle Ford Shale's glory days have come and gone, with production down 20% from its pre-2014 peak as drillers step into a new era of self-discipline and profit-driven operations. However, this newfound approach has helped the Eagle Ford record its first year of free cash flow generation, according to IHS Markit.
There is no end in sight for the downward pressure on oil and natural gas prices as sentiment and technology shift away from these legacy energy sources, writes Bloomberg Intelligence analyst Mike McGlone. In the short term, OPEC cuts and a stock market rally may support prices.
The Bureau of Land Management plans to make available 72 parcels covering 17,667 acres of land in New Mexico, Kansas and Oklahoma at a Feb. 6 online oil and natural gas lease sale. The agency is accepting public comments on the proposal.
The City Council of Broomfield, Colorado, unanimously approved a six-month extension of an oil and natural gas moratorium imposed in May. The move will give local authorities more time to consider revisions to oil and gas regulations following the passage of Senate Bill 181.
The past 10 years have seen many changes in the Eagle Ford—from one of the fastest-growing shale basins to a drastic fall in production and, finally, a recovery of sorts. While several Eagle Ford operators have enhanced their production, what more can they do to operate optimally in the basin?
A report by the Taxpayers for Common Sense advocacy group found that permissive federal regulations on oil and natural gas leasing and development in Colorado have resulted in $1.3 billion in lost revenue in the last decade. The Bureau of Land Management has a 12.5% royalty rate for development on federal lands, much lower than the 20% rate Colorado charges for leases on state trust land.
API Standards | Helping Build a Safe, Sustainable Energy Future for Guyana
API continues to drive safety and efficiency globally by encouraging adoption of best practices and training. "The production metering system is only the beginning of opportunities to promote safe oil and gas production in Guyana." - Debra Phillips, Senior Vice President of Global Industry Services
Course Offering | Qualified Crane Rigger
Learn about safely lifting loads using slings and rigging hardware, and gain skills required to competently act as a Qualified Rigger and effectively conduct safe lifting operations. To learn more and to register, visit the API-U Calendar.
Presented by: Sparrows Offshore, LLC, December 19-20; Thunder Oilfield Services Ltd., December 25-27.