How the Permian Basin Became North America's Hottest Oilfield | WSJ
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- Опубліковано 27 чер 2019
- The U.S. has more than doubled its crude oil output over the last decade. Much of the growth is due to the Permian Basin of West Texas and New Mexico. WSJ traces the hotspot of North America’s crude oil boom, with a look at challenges that producers in the region face.
#WSJ #oil
No political views shoved from the left, none shoved from the roght, just key, and useful information aidong our lives.
Thank you WSJ
I loved actually getting the news
Doesn’t really aid our lives
Yikes...please tell me your tongue is firmly planted in your cheek.
I work in the Permian and have been here for over 10 years. We are currently as of 2022 beginning to use natural gas to power equipment
That is about to change soon, the flaring will no longer be disposed to the air, there gonna create some kind of electrical turbine and it will generate electrical to power Frac sites, instead of the huge vast amount of diesel engines running to frack the shale.
Only problem is that the flairs are not 24/7. We only had a flair for a few hours over a 14 day period on the current rig I'm on near Odessa. Ideally we don't want any gasses/kicks/flair. They can be dangerous and scary as frig! I had a kick blow out the bottom butterfly valve on the gas buster one time.
@@matthewthibodeaux9830 They aren't consistent but still are capable of producing lots of energy. Buy some batteries from Telsa to store and use it over time :)
XxCajunLifexX Thibodeaux the problem is you only had one flare bud
@@matthewthibodeaux9830 The engineers said that there were insufficient pipelines and it would be in effect soon.
Electric fleets have been around since 2015. I've worked on their design and they're a piece of wonder. The only issue is the flow of natural gas needs to be within a certain range for the turbine to function. Compressors are the key here and I doubt that electric fleets will actually solve the issue of flaring. It certainly has the potential to mitigate the issue.
For perspective the Permian produces 4 Million barrels per day, the worlds consumption of crude oil per day is about 100 Million barrels.
Good video.
I am a Petroleum Geologist who has worked on and in the Permian Basin, and others around North America and the world in my short career. The Basin will remain an important part of the energy mix of the USA for a long time. However some of the estimates of potential overall production that are possible seem very unlikely.
One of the main lessons of the last 10 years is that there are limits and diminishing returns related to the application of technology. Many of the technologies that were supposed to lead to revolutions in oil and gas production such as, longer fracs, more stages, more stages done simultaneously, microseismic (honestly each service provider has their own idea about how this helps) aided fracturing design, and new chemical and frac prop mixes, none of these have allowed companies to produce profitable wells at near any price from non "Sweet Spot" areas of the target formation. Wolfcamp A-D, Avalon, Montney Up/lwr, Horn River, Bakken, are all heterogeneous and the variability in characteristics that make or break a companies profit margins are on a scale much smaller then previously thought.
So when a company talks about break even costs for drilling etc, they are almost certainly giving their best estimates of wells that are drilled in the sweet spots with good well control from wells that bypassed the target fm, >95% of the hz drilled in the target zone with it being homogeneous along the well bore, and the frac design working and implemented properly.
As with all oil and gas resources the low hanging fruit is starting to be picked over and those who make money in these ares will be those who understand these principals.
Evan Brown only few people understand what you just posted.
Even with the heterogeneity and uncertainty regarding oil in place, there is still plenty of money to be made. The issue is that oil companies WANT as many locations as they can get and end up spacing wells far too close together, then they wonder why the inflow performance isnt meeting type well expectations. If we started with wider spacing and worked our way in, then we would probably be seeing more predictable results, but fewer locations are not what investors want to see 😔
@@101lukman Shoot I toned it down a bit also..
@@jessevillarreal6782 There is money to made yes. I am uncertain about how much wider spacing will help. In some cases it might absolutely, however the most productive zones in the Wolfcamp are defined by some rather tricky to map characteristics that may be localized on a scale that fits between the current ideal frac spacing. That said after the next round of M&A companies should have enough data to make more sound decisions.
What is exciting is how AI can aid in conventional exploration also. There are many overlooked plays on a scale smaller then what we are used to that could be exploited with assisted modeling.
Big challenges but exciting times!
@@evanbrown2594 A.I is definitely going to be a game changer for sure especially in the area of reservoir characterization. I just started out in the energy sector full time this past January and am super excited to see what the future holds.
Appreciate the good convo!
05:00 interesting movie Tulsa! About this spacing technique from 1949.
Very interesting and informative video.
Good work WSJ!
We are here in Odessa now . Good work
The google earth view of pad sites or well locations is from my family's ranch just south of Odessa. Great video and great information. Thanks for sharing!
How’s the business going?
I once PUMPED THE FIRST WELL IN THE PERMIAN BASIN, Westbrook Tx.
More content like this please
I've deployed to Iraq. Those burning towers are everywhere, wasting resources and ruining the environment.
No u didnt
A waste, at some point when we have nothing to make fertilizer to feed billions we will wish we didn't just flare it.
Yup, really makes you think why we don't run more CNG/LNG vehicles.
@@joshn2342323 Does make you wonder. Why electric cars using grid power generated with NG when you can run it in NG vehicles.
@@carstars Agree. CNG/LNG power vehicles is a good bridge fuel.
Just when Germany tought America was out of oil, LOL!
New Mexico is the hot spot today, the oil is booming there, the roads are destroyed from the over loaded trucks on them.
Not so much Big Lake, but at Texon, a few miles west, where the Santa Rita #1 was drilled.
God Bless Texas.
DRILL BABY DRIL OH YEAHHHH AMERICA NUMBA WAHNNNN!!
1. Wellpads per acreage increased which lowers producticity leads to fewer acreage 2. Lower distribution pipeline 3. Climate issues (flaring. air quality. co2 issues)
The thing they dont tell you is main ingredient of fracing is condensate LOW GRADE JP-4 JET FUEL. I WAS A FRACER. 3 3/8 pump truck. Saw alot of good men die in late 70s in Red Desert wyoming 9 good men with halliburton from rock springs wyoming. Sad day.
Investment options anyone?
So any heads up for 2020? I own oilfield trucks. Nothings seems good right now @ Odessa Tx.
Would you say the Texas oil industry is dying?
I should pic up in 2020.
Solomon Ayub no it is not. Yes, many are over leveraged “got greedy” but oil & gas in Texas is here to stay, at least for another 25-50yrs.
that's my well!!
instead of flaring, connect the natural gas to a turbine generator engine directly for power generation
The Marcellus Shale operators are interesting. They are after the gas not oil. Antero has built landfills and a treatment plant to handle the waste, ODNR is forcing operators to build fewer pads and has as special tax if the state is forced to decommison older wells left abandoned. Flaring is a huge waste. If done right oil and gas will leave lasting benifets in petrochemicals and supplimentally power.
It's not that they are going after gas only. That's what the Marcellus contains. It's a dry gas reservoir only. There are parts where a small quantity of Natural Gas Liquids (NGL) or condensate is produced along gas but it's mainly natural gas.
In March 2019, i gave a presentation on same topic in my office. Its so good to see wall street making a video on it three months later. #Drillinginfo
Mayur Gupta what’s your presentation about?
And now they are learning as we did in the Bakken, shale wells dont produce over time. Usually 80% reduction within 2 years. And with the new law in 2020 which makes it almost impossible to transport via rail car.
does houdmeth own wells there?
Friday Night Lights or Flare
Horizontal drilling is not targeting multiple formations from a single site. That’s multilateral drilling.
interesting documentation ……..
Permian basin superorganism 💀☠️☠️🥶
The Santa Rita #1 was drilled in Regan county outside of Big Lake< Texas, Do your research!
Why doesn’t Odessa/Midland look like Dubai then? 🤷🏻♂️
I’m currently investing in Parsley Energy and Concho Resources, two Permian Basin operators
Earning yourself money whilst destroying the planet- classic American
You will only lose money, oil is a dead stock. Solar, Wind, Nuclear, and Fission are the best stocks bc they are they energy of the future. While you are buying oil stocks and making maybe a $25 profit per stock. Im making a $350 - $1500 per stock gain in 20 years on green energy. China, India, Europe and the world is moving away from fossil fuels. You would be an idiot to invest in it.
@@jaridkeen123 developing world and emerging markets beg to disagree
@@jaridkeen123 Oil will not be disappear overnight. It will take decades before green and renewable energy become number 1
Free Ride I don’t think he is American.
Nice
Did anyone else expect to see a burning oil field?
They want to sell the gas at a discount rate to someone else instead of just burning it.
Peak oil explained. The earth consumes a billion barrels every 12 days. The USA burns a billion every 50 days. Any questions?
I worked in the oil field for some time. I’ve always said that we should be buying up everyone else’s oil (while it’s “cheap” TODAY-right now) before we use our own. If we tap out of oil and need it as bad as we’ve always needed it, what do you think Saudi Arabia and Russia are going to charge us when that time comes. They WILL hold us hostage, keep our feet to the fire, and we’ll be like a heroine addict who’ll do anything for a “fix”!
And then it is refined in the gulf coast
It doesn't make any hypothesis about the last of the oil shale resource, but at least emphasize the terrible energy waste and air pollution of this type of exploitation and the runaway of the American production to be independent of traditional œil producteurs not using fracking technics and who will be still richer in the end because they didn't waste their supplies.
So why don't we have 50 cent/gallon gasoline?
Taxes!
🇺🇸
Why not go slow? Like in the past import until we really need it. Livin' La Vida Loca for now.
Fracking industry is in deep doo doo, with sparse profit if any, despite all the subsidies and environmental laws exemptions. They're drowning in debt.
But it's OK they will be bailed out by taxpayers when the bottom falls out because we need the oil.
Oh how I love the free market economy.
I work here in the Permian
One thing missing in the report is earthquakes created by cracking.
I wonder how sustainable will this be global warming and the melting of poles? Will this cause Russia to be have newer fields as well the U.S in Alaska?
Yes probably that why Donald Trump wanted to purchase Greenland too.
Since Global Warming is a hoax it will be fine.
@@auagfinder6541 I have no idea if your joking but global warming is real.
@@richardplizga3719 - Actual, factual, non-politicized, observable data tells us this:
“Sea-level rise is not accelerating
Hurricanes/tropical cyclones are not increasing
Tornadoes are not more frequent
Droughts are not increasing
Temperatures are not unprecedented
Recent warming has not been unusually rapid
CO₂ is increasing
The climate is perfectly normal”
“Carbon dioxide is a trace gas, just 4 parts in 10,000. It is produced through natural processes, human emissions cause only 3 per cent. Half of this is from China and India, where hundreds of new coal fired power stations are being built. Any changes in CO2 emissions in western economies will have negligible, unnoticeable effects on atmospheric CO2. As western economies shrink due to shifts to unreliable “sustainable” energy sources, China’s grip on world power continues to climb. This is the scale of climate/CO2 hoax.”
@@auagfinder6541 actually it is real, the arctic sea ice is retreating, the polar jet stream is becoming wavier and weaker making the weather shift crazily, many pacific islands already have flooding issues from glaciers melting. There’s a mountain of evidence for it
Elon musk will give the petroleum industry a Kodak moment; or a blockbuster booster if you prefer
her name is gaswirth in a piece about oil lol. talk about synchronicity and symbolism
The south of Mexico need natural gas, and Texas have the cheapest natural gas in the world, but the left wing president of Mexico refuse to buy gas from the USA, now the Yucatán península (Cancún is in this area) have energy cuts because there's not gas to produce energy.
Why not buy from Venezuela?
All Canadian Down Hole Technology. Your welcome.
Mexico really screwed up in ceding that territory.
You might want to brush up on your history. Mexico didn't cede it willingly. The US took it by force of arms. Ever hear of the Mexican War? From the memoirs of US Grant: "l do not think there was a more wicked war than that waged by the United States on Mexico."
P Joubert - the Mexican War really wasn’t about Texas. Texas had already gained its independence in 1836(Remember the Alamo!), although Mexico didn’t recognize the independence of Texas. The Mexican War started in 1846. The Mexican War was where we picked up California, New Mexico and most of Arizona. Mexico has plenty of oil but, oil production is run by the government (Socialism - the government owns the means of production) so it is very inefficient and rife with corruption.
@@auagfinder6541 Great comment.
AuAg Finder Mexico tried to turn it around then AMLO was like no.
Watch there will be blood.
Environmental damages outweigh economic benefits
Man attach a generator and it could power lots of bitcoin rigs
subbot btw
What a wacky commercial. Who are you trying to convince?
You admit there are SEDIMENT BASINS but cannot get to admit all sediments were laid down and rearranged during The Flood.
Lol...the prices went negative
Lord have mercy on us. Everyone cries about overpopulation and food shortage. Look at all of our land being misused
They lying
USA! USA! USA!
Drill baby drill! The Permian Basin has once again turned into a gold mine for fossil fuels! New Mexico and Texas are producing Texas Tea, black gold and its what pays for the party in tax revenue for both States. We here in New Mexico are very proud of the oil industry in our state. Its brought good paying jobs and excellent tax base for New Mexico! Hip hip hooray for oil!
Evil
@@flyingrc2041 eating?
@@flyingrc2041 you do realize they work right? Aside from that we can move away from burning fossil fuel in many different ways. Such as nuclear, ev, green foods ect. You can deny it all u want and continue on our bad habits as humans. But truth is truth.
@@flyingrc2041 i figured u would say that.
Intentionally polluting, wasting naturally resources for greed is evil. What is there to argue about?
You can try to justify it anyway you want.
lol bunch of northern libs telling us all these things we already know.
JC since when is a newspaper with the words _wall street_ in its name liberal?
@@williamkrause5831 the WSJ is RINO... or lolbiterian ... it isn't right leaning. And most of wall street is liberal... those psychos all vote democrat. Hillary received all of their money in 2016
I bet when you guys stole Texas and California you didn't think you would get this lucky.
Mexico has lots of oil, but it didn't go into building the Mexican economy, like most big oil producers, unlike the US
Bad Xerge if war and conquest is stealing, practically all nations in history would be guilty of your “stealing”. Take your pick, ancient China, Rome, Persia, the Mongols, Assyrians, Egyptians, I mean, don’t be so ignorant, we’ve been fighting wars for territory since we could make sharp stones.
Tyvern Overlord, Outside of WW1, WW2, and Desert Storm all wars the US has fought have been illegal and in most cases the only reason for them was territorial gain.
Texas independence was illegal since it was claimed by non citizen residents of Mexico, the mexican-american war was illegal since the so called 'invasion' never happened, it was just an invasion to gain the territories that Mexico wouldn't sell, the Spanish-American war was illegal, the annexation of Hawaii was illegal and shameful, the war in the Philippines was so close to genocide that they don't even teach it at school, Vietnam, the second Irak war, Afghanistan.
Matthew Sivieri, The last country to gain territory thru a war of conquest was Russia, and it's been under sanctions for it since. And yes, practically all nations in history are guilty of it and many other crimes, that's why our history is full of lies and half truths.
Bad Xerge I don’t agree on your point of lies and half truths, certainly the victor gets a huge say in what gets written down for the history books, but our history is quite unbiased and objective, and if you want sources from the oppressed/losing side point of view they always certainly exist, such as Howard zinn who portrays American history in the viewpoint of native Americans and African Americans who have been subjected to inequalities, and another example would be Anne frank.
A show made by a sociopath that is linked to the sociopaths the show is discussing.. how ironic..