62.6 F
Fort Worth
Sunday, October 25, 2020
Energy Permian investments grow as market shows signs of recovery

Permian investments grow as market shows signs of recovery

Other News

Ehlinger helps Texas beat Baylor 27-16 to end skid

By JIM VERTUNO AP Sports WriterAUSTIN, Texas (AP) — Sam Ehlinger passed for an early touchdown, then ran for two more in...

Who killed Sweden’s prime minister? 1986 assassination of Olof Palme is finally solved – maybe

Andrew Nestingen, University of Washington It took 34 years,...

An epidemiologist explains the new CDC guidance on 15 minutes of exposure and what it means for you

Ryan Malosh, University of Michigan The Centers for Disease...

Fort Worth Police seeking man who robbed diners on Southside restaurant patio

Fort Worth Police are seeking a man who robbed diners at an outdoor patio on Hemphill Street on the city's Southside.

CARLSBAD, N.M. (AP) — An American energy investment company has pledged $8.5 million to develop oil and gas assets in the Permian Basin that are owned by Shell Oil Co.
The announcement this month by U.S. Energy Development Corp. to acquire interest in a horizontal well project near the New Mexico-Texas state line is an indication that some operations are looking to expand their footprint in what is still considered one of the country’s most productive oilfields.

With a total development cost of about $24 million, the project will target part of what government scientists have identified as the largest continuous oil and gas resource in history, the Carlsbad Current-Argus reported.
U.S. Energy CEO Jordan Jayson said the company has already seen success in the Permian Basin. The firm in 2019 acquired operations in Ward County, Texas, and began operating three wells in the Wolfcamp shale formation with plans to invest another $40 million into the project by the end of the year.
The investment comes after a historic decline in the oil and gas market brought on by the COVID-19 pandemic and slumping fuel demands. Over the last several months, oil and gas companies have been trying to position themselves to capitalize on the Permian Basin as demand recovers.

Global demand fell from about 100 million barrels per day in the first half of 2019 to 90 million barrels per day in the first half of 2020, according to a report issued this week from the Energy Information Administration. The agency said the market saw some support through increased exportation in the first half of the year compared to the same period in 2019.
The increase was led by exports to China, which grew to an average of 361,000 barrels per day in first half of 2020. Exports to China continued to increase mid-year, making China the largest destination for American crude during May and June.

Meanwhile, the U.S. oil imports declined this year as more oil was produced domestically as demand declined.
During the first half of 2020, U.S. crude oil imports averaged 6.2 million barrels per day, down 12% compared with the first half of 2019.

Robert McEntyre, spokesman for the New Mexico Oil and Gas Association, said investments during the price slump will better prepare operators for the market’s ultimate recovery.
“Prices seem to be responding to some of the production curtailments since early spring. But our recovery is heavily dependent on our ability to recover from the pandemic and restore people’s ability to return to some form of normal life,” he said.
He added: “The geology has not changed. The longer-term value of those resources has not changed.”

Latest News

Donald Trump and Joe Biden sparred over Texas’ energy industry and global warming during final presidential debate

By Abby Livingston, The Texas Tribune Oct. 22, 2020 "Donald Trump and Joe Biden...

Biden calls for ‘transition’ from oil, GOP sees opening

By KATHLEEN RONAYNE and ELLEN KNICKMEYER Associated PressDemocrat Joe Biden's debate remarks that he would "transition" away from the oil industry in...

Halliburton: 3Q Earnings Snapshot

HOUSTON (AP) _ Halliburton Co. (HAL) on Monday reported a third-quarter loss of $17 million, after reporting a profit in the same...

Pioneer, Parsley announce merger to increase Permian strength

Dallas-based Pioneer Natural Resources Company (NYSE:PXD) and Parsley Energy Inc. (NYSE:PE) on Tuesday, Oct. 20 announced a definitive agreement under which Pioneer will...

ConocoPhillips buying Concho in $9.7B all-stock deal

By CATHY BUSSEWITZ AP Business Writer NEW YORK (AP) — ConocoPhillips is buying shale producer Concho Resources in an...