In its quarterly report, Houston-based Occidental Petroleum said last month it plans to allocate $2.9 billion for its capital budget for 2021 to sustain its oil and gas production at 2020Q4 levels through the end of this year. Oil and gas production is expected to decline to 1.14 million barrels (53 percent oil) per day in 2021 – down from 1.4 million b/d in 2020. Permian Basin will get 40 percent of Oxy’s capital budget and is expected to produce 485 Mboed in 2021 – down from 517 Mboed currently. Enverus said, “Strengthening the balance sheet is a key focus for the company, signaling dividend increases and growth capital are off the table until debt is materially reduced.”
• Midland-based Diamondback Energy said last month in its quarterly report it plans to drill 180-200 gross wells (156-172 net) and complete 215-235 gross wells (197-215 net) in 2021 and reach fullyear production of 178,000-185,000 barrels per day of oil (308,000-325,000 boed). Capital budget for 2021 is $1.35 billion to $1.55 billion. Fullyear 2020 production was 180,800 b/d of oil (300,300 boed) with drilling and completion budget of $1.55 billion. The company drilled 208 gross horizontal wells and turned 171 operated horizontal wells to production in 2020 – 87 in Wolfcamp A, 25 in lower Spraberry, 21 in Wolfcamp B, 17 in middle Spraberry, 11 in second Bone Spring, 6 in third Bone Spring and 4 in Jo Mill.