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The recent deposit of $2.74 billion from oil and gas production tax revenue into the state’s Economic Stabilization Fund was the third largest deposit ever made into the fund.  The deposits comprise the major portion of funds into the state’s “rainy day” fund each fiscal year.  The only larger deposits were $3.64 billion in FY2023 and $3.06 billion last year.

Railroad Commission of Texas said the legislature has used the fund to cover costs for a variety of agencies, including emergency expenditures.  Programs that have been funded include hurricane recovery funds for school districts disbursed by the Texas Education Agency, funding for State Water Plan by the Water Development Board, and state hospital construction funds disbursed by Department of Health and Human Services.

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A report this week from Enverus Intelligence Research says the decline in oil prices could encourage companies to reconsider spending plans for 2025 and reduce the number of drilling rigs.  The report said, “Holding the Permian Basin’s crude oil production at the current level of 6.4 million barrels per day requires companies to pare the number of active drilling rigs by about 10 percent.”

Alex Ljubojevic, a director at Enverus, said Tuesday, “If prices drop further, our experts wouldn’t be surprised if producers start paring 2025 budgets to curb drilling.”

Longer laterals and improved well performance help explain why producers can pare rigs yet continue to keep oil volumes steady, according to Enverus.  And the production of natural gas associated with Permian oil wells will continue to grow despite a decrease in drilling activity.  Ljubojevic added, “Lower Permian natural gas growth would need to be offset by increased production out of the Haynesville and Eagle Ford dry gas regions.”

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Houston-based EON Resources said this week it reached agreement with Enstream Capital Management for $22.5 million in well completion funding.  EON anticipates using the funds to develop 45 wells using low-cost workovers on the company’s 13,700 leasehold acres in Eddy County in southeast New Mexico in Permian Basin.  And the company also plans to use the funds for acquisition of an overriding royalty interest in the property.

Monday’s announcement said EON and Dallas-based Enstream view their relationship as a long-term opportunity to provide funding for multi-phase and multi-year development of the property with minimal capital outlays by the company.  Dante Caravaggio, CEO and president of EON, said, “We expect to complete this transaction to begin production in the first quarter of 2025 and start having a positive impact on EON’s financial condition in 2025 and for many years to come.”

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Texas’ energy exports and production of crude oil, natural gas and NGLs again achieved record levels in October, according to Texas Oil & Gas Association.  Marketed natural gas production achieved record high of 33.8 billion cubic feet per day in October, according to TXOGA estimates, along with 5.7 million barrels per day of oil.  For the first 10 months of 2024, Texas accounted for 43 percent of U.S. crude oil production and 29 percent of U.S. natural gas marketed production.

Todd Staples, president, said, “Abundant energy resources, world-leading infrastructure and a strong business climate continue to deliver unmatched results making Texas a remarkable energy leader… A recurrent theme in 2024 has been that Texas’ oil and natural gas production has continued to exceed expectations.”

Texas had refined product exports of 4.5 million barrels per day in August.  Dean Foreman, chief economist, said, “If Texas were a country, these exports would rank #1 in the world.”

The post TXOGA says Texas production of oil and gas continues to achieve records appeared first on Permian Basin Oil and Gas Magazine.


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December 2024: Hirings, promotions, and other personnel matters in the nation’s biggest oil patch—or in companies who do business here.

 

Permian People December

Beth McDonald

SM Energy Company announced Sept. 9 that Beth McDonald had been appointed as its Executive Vice President and Chief Operating Officer. President and Chief Executive Officer Herb Vogel commented: “We are delighted to welcome Beth to our executive team. She is an experienced and respected leader in our industry. Her breadth of experience at Pioneer, including leadership roles in engineering, planning, and marketing that spanned both the Permian Basin and Eagle Ford, make her an ideal addition to our team. I look forward to working with Beth to continue our success in Texas and to apply our strengths as a technical leader to our new Utah assets.”

McDonald most recently served as Executive Vice President—Strategic Planning, Field Development, and Marketing for Pioneer Natural Resources Company. For approximately the last 20 years, McDonald worked in roles of increasing responsibility at Pioneer, holding leadership positions focusing on both the Permian Basin and South Texas. Prior to joining Pioneer, she held various engineering roles at Hess Corporation and Total E&P USA. McDonald earned a Bachelor of Science in Petroleum Engineering from Texas A&M University.

 

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Permian People December

Gary Conway

Saulsbury Industries announced Oct. 8 an addition to its executive team, with Gary Conway joining the company as Chief Commercial Officer. Conway, with more than 30 years of industry experience and a proven track record in midstream asset management and strategy, brings expertise and leadership to strengthen operations and guide future growth. Within his career Conway has filled key leadership roles, including his recent position as Founder, President, and CEO of Vaquero Midstream LLC, where he led the development and operations of large-scale gas gathering and processing assets in the Permian Basin. His visionary leadership and ability to integrate innovative solutions, such as renewable energy sources and cutting-edge technology, were instrumental in transforming their midstream operations.

 

“We are very excited and fortunate that Gary has decided to join us here at Saulsbury,” said Chief Executive Officer Matt Saulsbury. “His vast industry experience, strong like-minded values, and strategic, forward-thinking approach aligns perfectly with our vision of the future. I am confident that Gary will be a seamless extension of our leadership group and will play a critical role in driving our company’s continued success and growth.”

 

Conway, for his own part, said he was “incredibly excited to join Saulsbury” and to contribute to the continued success of the organization. “I look forward to working with the talented team here to build on the company’s legacy of operational excellence and drive further growth,” Conway said.

 

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Permian People December

Steve Struna

Western Energy Alliance honored Steve Struna, president and CEO of Bayswater Exploration and Production, on Nov. 2 with the Wildcatter of the Year award in recognition of his 40 years of achievements in business and community engagement. As the 39th recipient of the Wildcatter award, he was formally celebrated by leaders in the oil and natural gas industry at the Wildcatter of the Year Gala. For more than 40 years, Struna has been an industry leader. Before founding Bayswater 20 years ago, Struna filled roles overseeing BP/Amoco’s U.S. Gulf Coast operations, Central Alberta Midstream’s joint venture with Chevron in Canada, and Amoco’s Central North Sea development efforts. Since starting Bayswater in 2004, Struna and his partners have managed assets in California, Colorado, Texas, Wyoming, Montana, and other locations across the United States. “I am honored and humbled to be recognized by my peers as this year’s Wildcatter,” said Struna. “Over the years, I have worked with many of the previous recipients of this prestigious award, learning a lot from their leadership and friendship. It’s truly special to me to receive this year’s Wildcatter of the Year.”

 

“Twenty years ago, Steve took a risk by deciding to build on his experience in engineering, operations, and finance and forming Bayswater,” said Kathleen Sgamma, president of the Alliance. “Since then, he’s proven to be an innovator and true leader. Steve embodies everything the Wildcatter award stands for in terms of operational excellence and caring for the community. Steve and his team are recognized as industry leaders in sustainable energy production that protects the environment and surrounding communities.”

 

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Permian People December

Joseph D. Smith

The American Institute of Chemical Engineers (AIChE) announced Oct. 29 that Joseph D. Smith, the Laufer Energy Chair and Professor of Chemical Engineering at Missouri University of Science and Technology and Chief Technology Officer at Elevated Analytics, will become President of AIChE in 2025. Smith succeeds 2024 President Alan E. Nelson, Vice President of Technology—New Energy at SLB (Houston, Texas). Anne O’Neal, Manager of Process Safety Culture and Competency at Chevron, will become the 2025 President-elect, and will succeed Smith as AIChE President in 2026. Smith earned a PhD in chemical engineering at Brigham Young University, where he was an American Western University Fellow at Los Alamos National Laboratory. He has served on chemical engineering faculties at Tennessee Technological University, the University of Michigan, and the University of Illinois Urbana-Champaign. He was the founding Wayne and Gayle Laufer Endowed Energy Chair at Missouri University of Science and Technology, where he led the Energy Research and Development Center and founded the Small Nuclear Modular Reactor Research and Development Consortium. Dr. Smith has published more than 80 papers and holds twelve patents. He has published a textbook titled Computational Fluid Dynamics for the Chemical and Petrochemical Process Industries. And he has more than 30 years’ experience working in the chemical and petrochemical industries.

The post Permian People December 2024 appeared first on Permian Basin Oil and Gas Magazine.


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Tulsa-based Alliance Resource Partners said last week it closed acquisitions of $10.5 million in Permian Basin in third quarter.  Joseph W. Craft III, chairman, president and CEO, said Oct. 28, the company realized another solid quarter of year-over-year growth in its oil and gas royalties business.  “We continue to reap the benefits of a minerals portfolio that is heavily weighted towards the Permian Basin, where top-tier upstream operators are actively drilling and completing new wells on our mineral acreage.”

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Permian Basin and Texas reported declining rig counts while U.S. and New Mexico reported stable counts in Baker Hughes’ weekly report of Nov. 1.  There were 303 rigs in Permian Basin (down from 304 week ago and 310 year ago) and 281 in Texas (down from 283 week ago and 304 year ago).  New Mexico has 100 rigs (104 year ago), and U.S. has 585 (618 year ago).  The most recent report with additional rigs in Permian was Sept. 20, and only four times in 3Q did Permian report additional rigs in the weekly reports.

Eagle Ford remains No. 2 among regions with 48 rigs (down 1 in past week) followed by Williston with 35 (up 1), Haynesville with 33 (unchanged) and Marcellus with 23 (up 1).  Oklahoma is No. 3 among states with 42 rigs (down 1) followed by Louisiana with 36 (unchanged) and North Dakota with 34 (up 1).

Lea (50) and Eddy (47) counties in New Mexico remain the Permian leaders (both unchanged in past week) followed by Midland and Martin each with 29 and Reeves with 28.  Others include Loving with 22, Reagan with 13, and Upton and Ward each with 12.

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Texas Workforce Commission and Texas Oil and Gas Association recently said the oil and gas industry’s upstream sector grew by 1,700 jobs in September.  There have been 14,300 upstream jobs added to date this year.  Since its low point in September 2020 during the covid19 pandemic, the industry has added or recovered 53,700 upstream jobs in Texas.  Increases in upstream oil and gas employment were reported in 31 of the last 36 months.  And oil and gas jobs pay among the highest wages in Texas with employers paying an average annual salary of $115,000 in 2022.

The upstream sector includes oil and gas extraction and excludes other industry sectors such as refining, petrochemicals, fuels wholesaling, oilfield equipment manufacturing, pipelines, and gas utilities, which support hundreds of thousands of additional jobs in Texas.

Todd Staples, president of TxOGA, said, “Not only have these high-paying jobs supported Texas families and communities, they’ve made Texas the undisputed energy leader and ushered in an energy renaissance that secures our allies, provides domestic economic growth, and is making Texas cleaner, stronger and better.”

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November 7, 2024 Oil & Gas

CO2 Conference

A huge percentage of horizontal wells are non-commercial in 10-15 years. What do you do next to preserve your asset?  Consider CO2 storage, EOR and produced water. When industrial sources capture their CO2 emissions, the emissions and excess water need a place to go. Depleted reservoirs like yours need a future.  That’s a perfect marriage: The incentivized capture of emissions, stored in secure reservoirs – and the Permian Basin is the ideal fit.

To learn how and about other CO2 opportunities, including CO2’s affect on your future. Plan to attend this year’s renowned 30th Annual CO2 Conference, Dec. 9-12, in Midland.

 

Capture the CO2 Opportunity. Produce Value. Register now.

www.co2conference.net

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Houston-based ConocoPhillips said last week its record lower 48 production of 1,147,000 boed in third quarter included 781,000 boed from Permian Basin.  Total company 3Q production was 1,917,000 boed.  The lower 48 total also included 246,000 boed from Eagle Ford and 107,000 boed from Bakken.  Ryan Lance, chairman and CEO, said Oct. 31, “ConocoPhillips continues to demonstrate strong operational performance, surpassing the high end of our production guidance during the quarter.”

The company’s 3Q production marked an increase of 111,000 boed from 2023Q3.  And production for the first nine months of 2024 was 1,921,000 boed – an increase of 120,000 boed from the same period in 2023.

Production for 4Q is expected to be 1.99 million to 2.03 million boed, and production for fullyear 2024 is forecast at 1.94 million to 1.95 million boed (compared to prior guidance of 1.93 million to 1.94 million boed).

Lance added, “We still anticipate closing the planned acquisition of Marathon Oil this quarter and expect to significantly exceed our initial $500 million synergy guidance.”

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