ExxonMobil increases Permian Basin oil and gas acreage

Posted on February 6, 2014

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ExxonMobil tank

In light of the increased interest in fracking (and that, primarily, in Texas), I note that ExxonMobil has increased its access to land for fracking:

ExxonMobil increases Permian Basin oil and gas acreage

“Through an agreement with Endeavor Energy Resources, L.P., XTO will fund development to gain substantial operating equity in approximately 34,000 gross acres in the prolific liquids-rich Wolfcamp formation in Midland and Upton counties. Endeavor will continue to operate shallow production while XTO will drill and operate horizontal wells in the deeper intervals. The agreement increases XTO’s holdings in the Permian Basin to just over 1.5 million net acres, enhancing the company’s significant presence in one of the major U.S. growth areas for onshore oil production.”

I have visited Midland and the Permian Basin, and I will return there at the end of March to talk with a number of experts. I have also been promised access to a site where drilling and fracking is underway. It is clear that the Permian Basin will be the next large fracking area for production of shale oil. One of the research tasks that I see before me is to study (together with UT Austin) the Permian Basin. An expert that I spoke with when I was there in December believed that the maximal production for the Permian Basin would be reached at around 1.5 Mb/d in a few years time. To achieve that level of production they would need to drill at least 20,000 wells. The Permian Basin is the second largest shale area in the USA. Once we have determined its production profile we should be able to determine the future shale oil production of the USA within quite a small margin of error. I will report on that trip when I travel there.

(Swedish)
Med fördjupat intresse för fracking, och då framförallt i Texas, noterar jag att ExxonMobli ökar sitt innehav av mark för fracking:
ExxonMobil increases Permian Basin oil and gas acreage

“Through an agreement with Endeavor Energy Resources, L.P., XTO will fund development to gain substantial operating equity in approximately 34,000 gross acres in the prolific liquids-rich Wolfcamp formation in Midland and Upton counties. Endeavor will continue to operate shallow production while XTO will drill and operate horizontal wells in the deeper intervals. The agreement increases XTO’s holdings in the Permian Basin to just over 1.5 million net acres, enhancing the company’s significant presence in one of the major U.S. growth areas for onshore oil production.”

Jag har gjort ett besök i Midland och Permian Basin, men skall tillbaka dit i slutet av mars för att prata med en del experter. Jag har också blivit lovad att få komma in till en plats där man borrar och frackar. Det är helt klart att Permian Basin kommer att bli nästa stora frackingområde för utvinning av skifferolja. En av de forskningsuppgifter som jag ser framför mig är att tillsammans med UT Austin studera Permian Basin. En expert som jag pratade med då jag var där i december trodde att maxproduktionen för Permian Basin skulle ligga på 1.5 miljoner fat om dagen om några år. För att nå den produktionsnivån måste man minst borra 20.000 brunnar. Permian Basin är det sista stora skifferoljeområdet i USA och med en framtida produktionsprofil för den produktionen kommer vi att med ganska snäva felmarginaler kunna bestämma USA:s framtida skifferoljeproduktion. Det blir en reserapport då jag varit där.

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