Article of the day: Reuters on activity in US shale basins.
New activity is stirring in secondary oilfields like Colorado's DJ Basin, Wyoming's Powder River, Louisiana's Haynesville and North Dakota's Bakken shale, which last year lost its spot as the second largest U.S. oil producing region.
"When you look at the oil prices in the Bakken, the prompt price is close to $90 a barrel," said Bob Phillips, chief executive of energy pipeline company Crestwood Equity Partners. "That doesn't happen very often."
Last week, Crestwood completed a $1.8 billion deal to purchase Oasis Midstream Partners' oil, gas and gas-processing assets in North Dakota and Texas as part of a plan to become a top-three midstream operator in the Bakken, Powder River and Permian shale fields.
In Wyoming's Powder River oilfield, Continental Resources has made several acquisitions since last year, the latest from Chesapeake Energy. That purchase could revive the area's output.
Still, outside of Haynesville and the Permian, oilfields lag their peak production. Bakken producer Hess Corp. aims to increase its overall production by 12% to 15% this year, driven by output in the Bakken and Guyana. Chevron plans to boost its Permian shale output 10% and Exxon said it could deliver 25% more oil and gas from its Permian holdings.
In the Bakken, oil output is around 1.2 million barrels per day (bpd), below its 1.52 million bpd late 2019 peak. In the Eagle Ford shale of South Texas, oil is averaging 1.1 million bpd, off the peak 1.7 million bpd in early 2015.
Much, much more at the link.
No comments:
Post a Comment