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Released June 03, 2022 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--According to the U.S. Energy Information Administration (EIA), marketed natural gas production from the Permian Basin, the second-largest shale gas-producing play in the U.S., reached a new annual high in 2021.
The 16.7 billion cubic feet per day (Bcf/d) of natural gas produced in 2021 was up from 15.4 Bcf/d in 2020, which continues the trend of steadily rising production in the Permian since 2012, according to the agency. The 2020 amount was up 13% year-over-year, even with effects from the COVID-19 pandemic.
Industrial Info is tracking 20 active drilling projects in the Permian Basin, including Diamondback Energy Incorporated's (NASDAQ:FANG) (Midland, Texas) $97 million Spraberry development, which will consist of 33 wells to produce crude oil and natural gas. Diamondback is an independent exploration and production (E&P) company focused on the Permian, and is at work on a series of drilling projects in the area. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production Project Database can click here for the detailed project report, and click here for a full list of active drilling projects in the Permian.
The EIA expects natural gas production in the Permian to rise 12.6% in 2022, boosted by high prices and increasing demand. The agency expects record U.S. natural gas production in 2023, at 106.6 Bcf/d.
Click on the image at right showing marketed natural gas production in the Permian Basin from 2012 through February 2022.
Most of the natural gas in the Permian is produced from oil wells, which is known as associated gas. The Appalachian Basin produced 34.8 Bcf/d in 2021, but most of its gas is produced from natural gas wells. In 2020, the Permian produced 50% of the total U.S. associated gas.
Crude oil prices have increased since April 2020, according to the EIA, and that has continued into 2022; the West Texas Intermediate (WTI) crude oil price on Wednesday reached $115.26 per barrel, up from almost $68 per barrel at the same time in 2021. The average WTI price in 2021 was $68 per barrel, up from $39 in 2020.
The EIA pointed to several pipeline projects in the Permian that will add nearly 5.0 Bcf/d of pipeline takeaway capacity by 2024. For more information on those projects, see Industrial Info's May 31, 2022, article - Mid-Year Outlook: Oil & Gas Investments Help Push Energy Transition.
Industrial Info is tracking more than 500 active natural gas production, pipeline and storage projects in the U.S., worth more than $35 billion, including $6.82 billion related to the Permian Basin. Subscribers to Industrial Info's GMI Oil & Gas Production, Pipeline and Terminals project databases can click here for a list of Permian projects, and click here for a full list of U.S. projects.
The Southwest region, which include Arkansas, Louisiana, Oklahoma and Texas, accounts for nearly half of the total U.S. spend.
Industrial Info Resources (IIR) is the world's leading provider of market intelligence across the upstream, midstream and downstream energy markets and all other major industrial markets. IIR's Global Market Intelligence Platform (GMI) supports our end-users across their core businesses, and helps them connect trends across multiple markets with access to real, qualified and validated project opportunities. Follow IIR on: LinkedIn.
The 16.7 billion cubic feet per day (Bcf/d) of natural gas produced in 2021 was up from 15.4 Bcf/d in 2020, which continues the trend of steadily rising production in the Permian since 2012, according to the agency. The 2020 amount was up 13% year-over-year, even with effects from the COVID-19 pandemic.
Industrial Info is tracking 20 active drilling projects in the Permian Basin, including Diamondback Energy Incorporated's (NASDAQ:FANG) (Midland, Texas) $97 million Spraberry development, which will consist of 33 wells to produce crude oil and natural gas. Diamondback is an independent exploration and production (E&P) company focused on the Permian, and is at work on a series of drilling projects in the area. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production Project Database can click here for the detailed project report, and click here for a full list of active drilling projects in the Permian.
The EIA expects natural gas production in the Permian to rise 12.6% in 2022, boosted by high prices and increasing demand. The agency expects record U.S. natural gas production in 2023, at 106.6 Bcf/d.
Click on the image at right showing marketed natural gas production in the Permian Basin from 2012 through February 2022.Most of the natural gas in the Permian is produced from oil wells, which is known as associated gas. The Appalachian Basin produced 34.8 Bcf/d in 2021, but most of its gas is produced from natural gas wells. In 2020, the Permian produced 50% of the total U.S. associated gas.
Crude oil prices have increased since April 2020, according to the EIA, and that has continued into 2022; the West Texas Intermediate (WTI) crude oil price on Wednesday reached $115.26 per barrel, up from almost $68 per barrel at the same time in 2021. The average WTI price in 2021 was $68 per barrel, up from $39 in 2020.
The EIA pointed to several pipeline projects in the Permian that will add nearly 5.0 Bcf/d of pipeline takeaway capacity by 2024. For more information on those projects, see Industrial Info's May 31, 2022, article - Mid-Year Outlook: Oil & Gas Investments Help Push Energy Transition.
Industrial Info is tracking more than 500 active natural gas production, pipeline and storage projects in the U.S., worth more than $35 billion, including $6.82 billion related to the Permian Basin. Subscribers to Industrial Info's GMI Oil & Gas Production, Pipeline and Terminals project databases can click here for a list of Permian projects, and click here for a full list of U.S. projects.
The Southwest region, which include Arkansas, Louisiana, Oklahoma and Texas, accounts for nearly half of the total U.S. spend.
Industrial Info Resources (IIR) is the world's leading provider of market intelligence across the upstream, midstream and downstream energy markets and all other major industrial markets. IIR's Global Market Intelligence Platform (GMI) supports our end-users across their core businesses, and helps them connect trends across multiple markets with access to real, qualified and validated project opportunities. Follow IIR on: LinkedIn.
