Platt’s is reporting that Sempra is in talks to build a LNG export terminal south of Tijuana in Baja. Could be a major new outlet for Permian gas. Interesting thing is most of the pipeline to the terminal would be through Mexico, probably because they don’t want to have to deal with California. So California costs itself a construction project that would have brought $ 3-4 billion to San Diego.
Good comprehensive overview of Permian issues.
Permian gas prices at the Waha Hub neared $0, yes $0, on Monday. Lack of capacity, maintenance of lines, and other factors at work here.
TPLT selling 14,000 surface acres for about $7000/acre. Not sure where located.
Good article that talks about issue of well spacing, particularly about “parent” and “child” wells. Bottom line, you want wells drilled and fraced at the same time. You don’t want to have to drill next to a well that has been producing for a while.
Was just at a Mid-Continent meeting and some of the talks were quite interesting regarding the parent-child relationship. One of their takeaways was that with older parent wells in production greater than a year, there were more problems with child interference and some talk of pressuring up the parent well before perf’ing the new wells. If the parent well had less than six months production, then the difference in parent child and negative interference is much less. More research to do.
Proven reserves hit all time highs. Texas and New Mexico almost as big as rest of country plus offshore combined.
Article about Exxon’s bet on Permian. Didn’t realize they had 38 rigs running.
Carrizo may cut capital expenditures in Permian. If you are following specific companies, these Seeking Alpha alerts are pretty good, although they have to be taken with a grain of salt, like all stock analysis/corporate presentations have to be.
Midland paper predicts continued consolidation for next 1-2 years. Interesting point that consolidations can present opportunities for smaller companies, because the larger companies often shed assets to finance the transactions.
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New Fed reserve estimate of the Permian - largest reserve ever assessed by them. 46.3 billion barrels, 281 TCF gas, and 20 billion barrels condensate.
Here is the actual USGS report. Is a reserve study of the Delaware Basin, basically.