Nice article about the war on hydrocarbons.
FERC approves 135 mile gas pipeline from SE New Mexico to Waha. Waha gas prices dipped negative earlier this month, but have rebounded quickly to around $1.85.
Pioneer acquiring Parsley. Smart merger of eastern and western Permian players.
The RRC plugged 1477 wells last year. Only about 100,000 to go (exaggerating some, not much). The plugging program is in need of a revamp and more funding. Generally the wells that get plugged are the ones where someone is an effective squeaky wheel, or the well is leaking significantly.
Interesting article about how water companies are using software to coordinate the booster pumps along temporary water lines to make sure that water transfer runs more smoothly and with less manpower.
Some details about who is going to survive the Devon/WPX merger.
The Poker Lake Express water line is operational in Eddy County.
Blackbuck acquired Cimarex’ water midstream lines in N.M.
Several companies have started permitting to use injection wells to inject liquid waste deep underground. They mix it with produced water and inject it. Here is one permitted in N.M. Maybe a better alternative to burying cuttings and other waste in surface pits.
The environmental groups trying to shut down the Dakota Access pipeline (which has been operating for more than a year) continue their mystifying pursuit. Lower production, higher local energy prices, and more trucks and rail cars. When do they realize that the money has already been spent to drill the wells in the Bakken? It costs little to operate a well that is already completed. The product is like a water balloon - you try to suppress it by choking off the safest and cheapest means of transport, and it will still find a way to be transported by other means. Would be interesting to see if anyone who owns land where the pipeline went over has volunteered to give their easement money back with interest.
Bonanza Creek and High Point are merging.
Want to go petroleum free in your life? All you have to do is stop using all of the products listed below (actually there are more, we just kept it to one page):
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Typewriter ribbons? That’s a funny one.
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New Mexico is banning use of fresh water on state lands for drilling. While this may not have a big impact, because of the proliferation of water recycling and water transport systems, it is another example of where New Mexico seems headed down the same path as Colorado, California, etc. to try to strangle new development by regulation.
So if you are an operator trying to develop a wildcat field on state lands far from established infrastructure? I have not read the regulation to see if there is an exception for this, but if not, a great way to strangle innovation and discovery of new fields.
As we continue to shoot ourselves in the foot in this country as it relates to the oil industry, I am sure Venezuela, the Middle East and Russia will take pity on us and agree not to fill the gap we are creating in production (sarcasm implied).
In other pro-operator opinion, Texas Supreme Court says a CDC clause was ambiguous because it wasn’t clear whether the unused days only rolled over to the next well or accumulated. However, because it was ambiguous, you cannot terminate the lease. So I guess if you took it to trial and the jury agreed the days did not accumulate, you still cannot terminate the lease?
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Diamondback is buying QEP for about $3 billion, and indicates it will be selling some of its Williston assets to fund the purchase.
The Permian Highway pipeline is open. Two billion cubic feet per day of additional takeaway capacity for the Permian Basin down to markets around Houston. Should help further stabilize Waha hub gas prices, which have found a footing, and the discount with other markets is shrinking rapidly. Some have described a “tug of war” developing for Permian gas in different directions.
The route of this pipe through the Hill Country was very controversial.
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Double E is seeking approval for a new 1.35 bcfd pipeline from SE New Mexico to the Waha hub. Line will be 135 miles long, and exxon owns 30% of it.
Agua Blanca gas pipeline expansion in the Permian to Waha is in service. Good map of the system.
Picture of wind turbine blades in a landfill in Wyoming. They cannot be recycled.
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