- The Energy Department believes the daily oil production of a new well in the Permian Basin drilled by an average rig will decline for the first time since its analysts began tracking it in late 2013.
- The DoE says the statistic will edge lower by 10 barrels to 630 barrels - barely a dent - but it could signal an ominous milestone for companies that have touted increasingly efficient and productive drilling as a way to offset the financial pain of low oil prices, according to the Houston Chronicle's Collin Easton.
- Combined with another recent trend of oil companies drilling more wells than they have brought into production, Easton says they are signs that drilling rigs are coming back to the Permian so fast that they are far outpacing the speed at which contractors can ready the equipment needed to bring the wells into production.
- Still, overall Permian production is not likely to decline anytime soon, with daily oil production projected to rise by 71K barrels next month to 2.5M, up from 2M barrels a year ago.
- Among top Permian operators: PXD, EOG, DVN, NBL, PE, XOM, CVX, OXY, WPX, RSPP, CXO, APC, APA, FANG, SM, EGN, MTDR, QEP, ECA, CPE, LPI
- Now read: Long Exxon 4/4/17
Original article