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Wood Mac: Permian could top out in 2021 unless tech overcomes geology

September 21, 2017

HOUSTON (AP) — The world’s hottest oil field could run out of steam in just a few years if shale drillers can’t overcome the natural constraints of the region’s geology, a new study says.

Reported by the Houston Chronicle  on Thursday, the report states that by 2021, oil production could peak in Permian Basin, as rapid drilling and fracking exhaust underground pressure in the most prolific areas of the West Texas play, according to one scenario outlined by energy research firm Wood Mackenzie.…

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Chevron Sells Slice of Permian in West Texas to Sabinal, Kayne Unit

September 14, 2017

Deal Includes Portions of Gaines, Terry, and Hockley County Assets

HOUSTON — Chevron U.S.A. Inc. has sold 66,500 net acres in West Texas to Sabinal Energy LLC and Kayne Private Energy Income Fund LP., according to a Wednesday report from Natural Gas Intelligence’s Shale Daily website.

The property, now producing 7,500 boe/d, is in Hockley, Terry and Gaines counties in the Permian Basin, within the Central Basin Platform and Northern Shelf.…

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Harvey’s flooding blamed in major gasoline spill in Texas

September 12, 2017

Hurricane Harvey’s floodwaters triggered a spill of almost a half-million gallons of gasoline from two storage tanks along the Houston Ship Channel, marking the largest spill reported to date from a storm that slammed into the heart of Texas’ huge petrochemical industry.

The spill measured 10,988 barrels, or more than 461,000 gallons, and occurred at a petroleum tank farm in Galena Park operated by Magellan Midstream Partners, according to the Oklahoma-based company and accident reports submitted to federal officials.…

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Gasoline prices falling, shortages ending

September 12, 2017

HOUSTON (AP) — Gasoline prices are starting to fall after peaking late last week as temporary shortages caused by Hurricane Harvey begin to ease.

Texas gas stations are mostly replenished with fuel now – though some pockets of outages remain in Houston, Dallas and San Antonio, according to GasBuddy.com, a website that tracks gasoline prices and refining activity.…

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RRC: Gaines Oil Wells Produce 1.86M Barrels in June

August 31, 2017

Just over 1.86 million barrels of oil was produced from Gaines County wells during the month of June 2017, according to preliminary numbers released by the Texas Railroad Commission earlier this week.

Year-to-date, Gaines County has produced 11.48 million barrels of oil for the 2017 calendar year, which is some 1.71 million barrels behind the 2016 calendar year’s adjusted total of 13.19 million barrels through the month of July 2016.…

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Gasoline prices rise as largest U.S. refinery shuts down

August 31, 2017

HOUSTON (AP) — Gasoline prices are expected to rise as floodwaters caused by Tropical Storm Harvey force the nation’s largest oil refinery in Port Arthur to shut down Wednesday.

The refinery, owned by Saudi Arabia’s Motiva Enterprises, churns through more than 600,000 barrels of crude oil a day to produce gasoline and other petrochemicals.…

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Harvey could have deep impact on Texas oil, US economy

August 28, 2017

Massive flooding caused by Tropical Storm Harvey along Texas’ refinery-rich coast could have long-standing and far-reaching consequences for the state’s oil and gas industry and the larger U.S. economy. The storm’s remnants left much of Houston underwater on Sunday, and the National Weather Service says it’s not over yet: Some parts of Houston and its suburbs could end up with as much as 50 inches (1.3 meters) of rain.…

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Oilfield sand miners encroaching on threatened West Texas lizard

August 15, 2017

A voluntary plan the state of Texas crafted to protect a tiny West Texas reptile — and avoid its listing as an endangered species — is facing a significant threat from companies that mine the fine-grain sand oil producers use for hydraulic fracturing.  

That’s the central message of a letter Texas Comptroller Glenn Hegar’s office sent late last week to the U.S.…

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Occidental Ties Compensation to Plan to Break-Even at $40 a Barrel

August 4, 2017

HOUSTON (AP) — Occidental Petroleum Corp. has tied company-wide compensation to a plan to bring costs low enough to break even at $40 a barrel oil, CEO Vicki Hollub said Thursday.

After reshuffling its oil properties and pouring cash into the Permian Basin, the Houston oil company now has the most lucrative assets it has ever owned in its 100-year history, she said in a story produced by FuelFix.com, an online publication of the Houston Chronicle.…

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Fracturing-related water issues draw attention in West Texas

August 3, 2017

VAN HORN (AP) — A West Texas land baron and oilman is on the verge of pumping 5.4 million gallons of water a day from far under the desert mountains here and piping it 60 miles to the nation’s most bountiful oil field, the Permian Basin, where hydraulic fracturing has fueled a renaissance of U.S.…

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