0
0
Home » Oil and Gas

Permian Basin in the United States of America (USA), 2021 – Oil and Gas Shale Market Analysis and Outlook to 2025

The report provides a comprehensive review of hydrocarbon appraisal and development in the Permian Basin against the backdrop of the COVID -19 pandemic. The report also provides an outlook for oil and gas production in this play till 2025 along with the competitive positioning of major operators.

The Permian Basin located in the states of Texas and New Mexico is the largest oil-producing region in the US. In 2019, the basin averaged over 4.3 million barrels of oil per day (mmbd), peaking at 4.7 million in December 2019. During 2020, oil production averaged over 4.8 million barrels of oil per day (mmbd) from January to March before the pandemic-led demand crash that resulted in a production drop to an average of 4.3 million from April to December 2020.

The lowest level of crude and condensate production was reached in September 2020, at 4.2 mmbd or 12.5% below March 2020 levels. While natural gas production reached the lowest volumes of 14.8 bcfd in May 2020, which was a 14% drop compared to March 2020.

Permian Basin market overview

Permian Basin market overview

For more insights on this report, download a free report sample

What are the market dynamics of the commodities produced in the Permian Basin?

The Permian Basin is the largest oil-producing region in the US and was the most affected play in the country during the COVID-19 pandemic. At the beginning of 2021, there was a slow recovery in production until mid-February when a massive winter storm caused major disruptions to drilling activity and production facilities throughout the Permian Basin. Companies like Occidental Petroleum and Pioneer Natural Resources reported shut-in production as a direct cause of the storm. If current oil and gas markets remain steady and continue their slow rise, the Permian Basin is on track to reach pre-pandemic production rates by 2022.

With the introduction of COVID-19 vaccines for the public and throughout the workforce, consumer demand is slowly beginning to rise, and with it, an increase in WTI pricing and drilling activity. Throughout mid-2020 into 1Q 2021, many companies sold off assets, acquired new ones, and went about restructuring their organizations. It is becoming clear that many Permian Basin companies are refocusing their attention on their core asset and ramping up drilling and completion programs as WTI prices continue to climb. Moreover, between January 2019 and May 2021, more than 21,000 new permits were issued cumulatively for wells in the Permian Basin, with the majority of permits issued for wells in Texas. Permit activity in the Permian Basin increased marginally in 2019 from 2018. However, the activity reduced by 1% during the second half of 2019, showcasing smaller movements. Moreover, the year 2020 witnessed a steeper fall in permit activity owning to the COVID-19 outbreak. Since the start of the year, the oil price crash made shale drilling uneconomical. However, the year 2021 has started relatively well in terms of permit activity in the Permian Basin. This can be attributed to the recent recovery in oil prices.

What are the recent mergers and acquisitions in the Permian Basin?

Occidental Petroleum Corp entered into a definitive agreement to sell non-strategic acreage located in the Permian Basin to an affiliate of Colgate Energy Partners III, LLC on June 10, 2021. The purchase consideration is worth $508 million. The transaction along with the recent acquisition of Luxe assets has strengthened Colgate Energy’s position in Permian Basin. Increased business activities and access to more liquidity has enabled the company to boost its development programs.

What are the major counties producing crude oil and condensate and natural gas in the Permian Basin in 2020?

In 2020, Lea county in New Mexico was the largest producer of crude oil and condensates in the Permian Basin, followed by Eddy, Reeves, Loving, and Midland counties. In 2020, Reeves county from Texas was the largest producer of natural gas, followed by Eddy, Lea, Culberson, and Loving. 

Major counties in Permian Basin, by production of crude oil and condensate

Major counties in Permian Basin, by production of crude oil and condensate

For more insights, download a free report sample

Who are the major players in the Permian Basin?

In 2021, Occidental Petroleum had the highest leasehold by net acres in the Permian Basin, followed by Apache Corp, Chevron Corp, Exxon Mobil Corp, and Pioneer Natural Resources. Occidental Petroleum is one of the largest producers of crude oil and natural gas from this play. Exxon Mobil Corp led the market with a strong financial standing followed by BP Plc, Chevron Corp, Occidental Petroleum, EOG Resources, and Pioneer Natural Resources during the same period.

Major players in Permian Basin, by financial holdings

Major players in Permian Basin, by financial holdings

To know more about key players, download a free report sample

Market report scope

Production Capacity of Crude Oil and Condensate Production (Year – 2020) 4,437.9 mbd
Growth Rate of Crude Oil CAGR of >4% from 2021 to 2025
Base Year for Estimation 2020
Market Commodities Crude Oil and Natural Gas
Forecast Period 2021–2025
Key Players Exxon Mobil Corp; BP Plc; Chevron Corp; Occidental Petroleum; EOG Resources; Pioneer Natural Resources; Apache Corp; Ovintiv Inc.; Diamondback Energy; Devon Energy Corp; Continental Resources Inc; Royal Dutch Shell Plc; SM Energy Co; Matador; Resources Co; ConocoPhillips; Centennial Resource Development Inc; Callon Petroleum Co; Marathon Oil Corp; Oasis Petroleum Inc; PDC Energy Inc; and Cimarex Energy.

The report analyses the crude oil and natural gas appraisal and production activities in the Permian Basin in the US. The scope of the report includes: 

  • Comprehensive analysis of crude oil and natural gas historical production and outlook during 2018-25
  • Detailed information of impact on well development, permits, and deals against the backdrop of the COVID-19 pandemic
  • In-depth information of well productivity and well completion parameters across Permian Basin in the US
  • Analysis of top companies’ net acreage, planned capital expenditure in 2021, as well as crude oil and natural gas reserves and production stats as of 2020
  • Up-to-date information on major mergers and acquisitions across the Permian Basin between 2019 and 2021

Reasons to Buy

  • Develop business strategies with the help of specific insights into the Permian Basin in the US
  • Plan your strategies based on economic viability and expected developments in the Permian Basin
  • Keep yourself informed of the latest M&A activity across Permian Basin
  • Identify opportunities and challenges across Permian Basin

Table of Contents

1. Overview 6

1.1 Permian Basin, Recent Developments and Trends 6

2. Permian Basin, Introduction 8

2.1 Permian Basin, Formation Overview 8

3. Permian Basin, Production and Activity Overview 9

3.1 Permian Basin, Production Analysis, 2018-2020 9

3.2 Permian Basin, COVID-19 Impact on Production 12

3.3 Permian Basin, Production Outlook, 2021-2025 13

3.4 Permian Basin, Drilling Activity 14

3.5 Well profile 19

4. Permian Basin, Competitive Benchmarking 21

4.1 Permian Basin, Major Companies with Prominent Presence, 2021 21

4.2 Permian Basin, Financial Standings of Major Companies 24

4.3 Permian Basin, Operational Performance of Leading Operators 25

4.4 Permian Basin, Completion Parameters, 2019-21 27

4.5 Permian Basin, Plans of Major Companies 30

4.6 Permian Basin, Cost Trends, March 2021 31

5. Permian Basin, Analysis of Bankrupt Companies 32

5.1 Rosehill Resources 32

5.2 EP Energy 33

6. Permian Basin, Associated Infrastructure 34

6.1 Pipelines 34

7. Mergers and Acquisition Activity in the Permian Basin, 2019-2021 37

7.1 Overview of M&A Activity 37

7.2 Major Acquisitions 37

8. Permian Basin, Analysis of Major Companies 40

8.1 Apache Corporation 40

8.2 Chevron Corporation 40

8.3 Devon Energy Corporation 41

8.4 ExxonMobil Corporation 41

8.5 Occidental Petroleum Corporation 42

8.6 Royal Dutch Shell Plc 42

8.7 Cimarex Energy Company 42

8.8 Endeavor Energy Resources, L.P. 43

9. Appendix 44

9.1 Abbreviations 44

9.2 Methodology 44

| Contact Us 45

List of Tables

Table 1: Permian Basin, Crude Oil and Natural Gas Production, 2018-2020 9

Table 2: Permian Basin, Net Acreage by Company, 2021 21

Table 3: Permian Basin, Reserves and Production by Major Companies, 2020 23

Table 4: Permian Basin, Financial Standings of Major Companies, Q1 2021 24

Table 5: Permian Basin, Operational Performance of Leading Operators, January 2020 – March 2021 25

Table 6: Permian Basin, Planned Capital Expenditure by Major Companies, 2020-21 (US$ million) 30

Table 7: Rosehill Resources, Permian Basin, Key Operational Parameters, 2020 32

Table 8: EP Energy, Permian Basin, Key Operational Parameters, 2020 33

Table 9: Permian Basin, Reserves and Production by Major Companies, 2020 35

Table 10: Permian Basin, Major Deals by Oil and Gas Companies, 2019-21 38

List of Figures

Figure 1: Total Production in Permian Basin, 2018-2021 6

Figure 2: Rig count in Permian Basin, and West Texas Intermediate (WTI) future prices, 2019-2021 7

Figure 3: Permian Basin, Crude Oil and Condensate Production by County (mbd), 2018-2020 10

Figure 4: Permian Basin, Natural Gas Production by County (mmcfd), 2018-2020 11

Figure 5: Permian Basin, COVID-19 Impact on Production, 2021 12

Figure 6: Permian Basin, Production Outlook, 2021 – 2025 13

Figure 7: Permian Basin, Number of Well Permits by County, Texas, January 2019 to May 2021 15

Figure 8: Permian Basin, Number of Well Permits by County, New Mexico, January 2019 to May 2021 16

Figure 9: Permian Basin, Well Permits by Key Operators, Texas, January 2019 to May 2021 17

Figure 10: Permian Basin, Well Permits by Key Operators, New Mexico, January 2019 to May 2021 18

Figure 11: Permian Basin, Well Profile for Crude Oil Production 19

Figure 12: Permian Basin, Well Profile for Natural Gas Production 20

Figure 13: Permian Basin, Proppant Mass (million lbs.) vs Lateral Length (ft) 27

Figure 14: Permian Basin, Average Peak Crude Oil Production vs Lateral Length (ft) Quartile 28

Figure 15: Permian Basin, Peak Total Production vs Lateral Length, 2019-2021 28

Figure 16: Permian Basin, Total EUR vs Lateral Length, 2019-2021 29

Figure 17: Permian Basin, Major Companies by Well Costs (US$ mil), March 2021 31

Figure 18: Permian Basin, Major Active Crude Oil and Natural Gas Pipelines by Capacity, May 2021 34

Frequently Asked Questions

In 2020, the Permian Basin produced 4,437.9 mbd of crude oil and condensate.

The Permian Basin produced 16,395.5 mmcfd of natural gas in 2020.

Crude oil production is expected to have moderate growth over the forecast period of 2021-25 at a CAGR of more than 4%.

In 2021, Occidental Petroleum had the highest leasehold by net acres in the Permian Basin, followed by Apache Corp, Chevron Corp, Exxon Mobil Corp, and Pioneer Natural Resources.

In 2021, Exxon Mobil Corp led the market with a strong financial standing followed by BP Plc, Chevron Corp, Occidental Petroleum, EOG Resources, and Pioneer Natural Resources.

    Pricing

Discounts available for multiple purchases.

reportstore@globaldata.com
+44 20 7947 2960

Join our mailing list

Saved reports