Texas Petro Index by petroleum economist Karr Ingham declined in February for the 12th consecutive month to 188.5 from 191.9 a month ago in January 2020 and 213.2 a year ago in February 2019 (down 11.8 percent in past year). The index is based on a comprehensive set of economic indicators in the industry (base […]
Rising Tide
In 1977, following the 1975 passage of the Energy Policy and Conservation Act (EPCA), almost all petroleum exports from the United States were banned. The Commerce department was allowed to make a few exceptions, such as for trade with neighbors Canada and Mexico. All this was, of course, in response to the OPEC oil embargo […]
Phillips 66 to defer Red Oak pipeline amid 2020 budget cuts
Operators in Permian Basin’s energy industry continue to announce reductions in capital budgets for 2020. They include: Phillips 66 said March 24 it will defer its Red Oak pipeline as part of reducing its 2020 capital budget by $700 million to $3.1 billion. With Plains All American Pipeline, Phillips 66 formed Red Oak Pipeline to […]
Crude oil, natural gas operators reduce spending in Permian Basin
More operators are reacting to commodity price downturn and industry current conditions by reducing 2020 capital spending in Permian Basin. They include: Apache reduced its 2020 capital budget to about $1.1 billion – down from about $1.75 billion – and will idle all its rigs in Permian Basin and reduce drilling elsewhere. “We are significantly […]
U.S. status as net petroleum exporter “at risk” as majors trim budgets
The U.S. status as a net petroleum exporter is at risk, Bloomberg said this week, as plunging oil prices threaten domestic production. U.S. recently began exporting more petroleum that it imports because of “record shale production in fields such as the Permian Basin.” Bloomberg added, “Now, amid the worst price rout in nearly three decades, […]
Centennial reduces operated rigs in Reeves County to three
Denver-based Centennial Resource Development said Feb. 24 it is reducing operated rigs in Reeves County to 3 beginning in 2020Q2 with a focus on upper Wolfcamp A and third Bone Spring sand zone. Another rig will be allocated to Lea County, N.M. Centennial is reducing its 2020 capital budget 28 percent compared to 2019. The […]
Permian Basin adds rigs for fourth straight week to reach 415
Permian Basin, Texas, New Mexico and U.S. each added rigs in the past week, according to the weekly report of active oil and gas drilling rigs for March 6 from Baker Hughes. Permian added 4 rigs for a new total of 415 (411 week ago, 465 year ago, 405 to start 2020), and Texas added […]
O&G’s X Factor
Never spend your money before you have it. —Thomas Jefferson What some might consider a bad habit—waiting 60-90 days to pay invoices—has birthed a business sector whose purpose is to bridge that gap by advancing money on those unpaid debts. Known as factoring or accounts receivable (AR) financing, this service allows companies—usually service providers—to stay […]
Private Equity’s Pros and Cons
December 2, 2001, was a day of infamy for thousands of people. On that date Enron declared bankruptcy, trading at a paltry $.26 per share after topping the scales at more than $90 per share a few months earlier. That is also the time that Midland entrepreneur Tripp Wommack sees as the beginning of prime […]
Lease Prices, Demystified
In recent months some record dollar amounts have been paid for leases in the Permian Basin. In 2018 a Santa Fe firm that places bids for anonymous investors bid more than $95,000 per acre for a tract of U.S. government land on the New Mexico side of the Basin. That number was a record high […]