Playbooks

Permian Basin 2017

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PERMIAN BASIN: KEY PLAYERS 30 | November 2017 | hartenergy.com ExxonMobil/XTO Energy ExxonMobil holds about 1.5 million acres in the Permian Basin and produces about 140,000 boe/d. In January ExxonMobil more than doubled its Permian Basin resources to 6 Bboe through the acquisition of companies owned by the Bass family of Fort Worth, Texas, with an estimated resource of 3.4 Bboe in New Mexico's Delaware Basin in the Permian, a press release stated. The acquired companies, which include the operating entity BOPCO, hold about 275,000 acres of leasehold and production of more than 18 Mboe/d net (about 70% liquids)—this included about 250,000 acres in the Permian Basin, the release stated. According to a January Forbes article, the com- pany had 10 rigs working in the Permian region and planned to add 15 or more after the acquisition closed in the fi rst quarter. ExxonMobil's shale unit, XTO Energy, "will begin erecting drilling rigs across a patch of southeast New Mexico to exploit the region's mile-thick strata of oil-soaked rock," and "deci- sions on when and how to harvest the crude [will] fall solely on the shale experts at XTO," a Bloomberg report stated. During first-half 2017 ExxonMobil issued a combined 96 million shares of common stock during the fi rst quarter to complete the acquisition of InterOil Corp. and the acquisition of entities that own oil and gas properties located primarily in the Permian Basin, according to the company's second-quarter report. The company also spudded its fi rst well on the recently acquired Delaware Basin acreage, drilling a 12,500-ft lateral section, the report stated. Kinder Morgan Kinder Morgan Inc. (KMI) is one of the largest energy infrastructure companies in North America. The company is also a producer of CO 2 , which it transports and utilizes for EOR projects primarily in the Permian Basin. The company holds ownership interests in several oil-producing fi elds and owns a crude oil pipeline, all located in the Permian Basin region of West Texas. The oil- and gas-producing fi elds in which the company owns interests are also located in the Permian Basin area of West Texas. KMI's principal market for CO 2 is for injection into mature oil fi elds in the Permian Basin, where the company expects industry demand to remain stable for the next several years, according to its year-end 2016 release. "KMI is developing additional CO 2 source capacity in the Cow Canyon and Doe Canyon areas of southwestern Colorado in response to the increasing demand for CO 2 from customers in the Permian Basin region of West Texas. In sec- ond-quarter 2017 the company drilled one well and expects to drill additional wells this year to support the growing demand for CO 2 ," according to KMI's second-quarter 2017 earnings report. KMI also has proposed to build a 430-mile natu- ral gas pipeline from West Texas' Permian Basin to the Corpus Christi region, according to the compa- ny's website. "The project is designed to capitalize off of increasing Permian oil and gas production to carry more gas to the Texas Gulf Coast, where it can be consumed locally, refi ned and exported, or shipped to Mexico. The 42-in. pipeline, which could be completed in late 2019, would specifi cally trek from Waha, Texas, to Agua Dulce [Texas], which is just west of Corpus Christi," according to a FuelFix article released in March. The nonbinding open season for KMI's Gulf Coast Express Pipeline Project closed on April 20, with bids exceeding the capacity offered, the report stated. KMI and DCP Midstream continue to work with prospective shippers to obtain fi rm commit- An oil rig operates at Kinder Morgan's SACROC unit in Scurry County, Texas. In 2016 this fi eld produced nearly 30,000 bbl/d of oil. (Photo courtesy of Kinder Morgan Inc.)

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