Permian's Drilling Laterals Extend Longer and Longer

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Written by Daniel Graeber for IIR News Intelligence (Sugar Land, Texas)

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Summary

Laterals in the Permian Basin now extend for miles. The formation, which is the largest shale oil producer in the world, has been getting a lot of attention lately in the natural gas sector.

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More Oil and Gas Coming from Extended Efforts

Largely absent in the U.S. shale patch as recently as 2020, operators in the Permian Basin are tapping deeper into the formation with ultra-long laterals extending more than three miles, the federal government said.

"Well operators in the Permian region of western Texas and eastern New Mexico are getting more oil and gas out of the ground by drilling longer, horizontal wells and increasingly incorporating so-called super-lateral wells that exceed 15,000 feet," analysts at the U.S. Energy Information Administration (EIA) wrote on Wednesday.

Industrial Info is tracking a dozen or so projects associated with Permian drilling, with a combined investment value of $1.8 billion. Industrial Info Resources offers more information on these projects in its Global Market Intelligence (GMI) Oil & Gas Production Project Database, where readers can find details in a list of project reports.

Denver-based Ovintiv, formerly known as Encana, is behind one of the largest by value. Ovintiv is operating five rigs and deployed one frack crew this year. Readers can learn more from a detailed project report.

The EIA, in a monthly market report for August, found Permian production should average 6.78 million barrels per day (bpd) in 2026, accounting for about half of total U.S. production.

Permian oil production is on pace to expand by 3.7% next year to reach 7.03 million bpd.

By the Numbers

• 15,000-foot-long laterals used in the Permian
• 23% of the total marketed gas production comes out of the basin

Gas Production Expanding Much Faster

As the basin matures and well pressures change, it is yielding more natural gas, because heavier molecules associated with crude oil get trapped in subsurface pores. Gas production from the Permian is expected to average 29.2 billion cubic feet per day (Bcf/d) this year, accounting for about 23% of the total marketed gas production, federal data show.

That would expand by nearly 8% to reach 31.5 Bcf/d by 2027, should federal forecasts prove accurate. To tap those reserves, drillers are going deeper and longer, according to the EIA.

"Virtually non-existent before 2020, these wells, more than three miles long, accounted for 15% of all new Permian well completions in 2025," the EIA said.

Among the major players in the basin, Targa Resources Corporation began operations on its Delaware Express pipeline, a 100-mile artery that carries gas away from the Delaware portion of the Permian Basin. Industrial Info is tracking several others in the works, including the 2 Bcf/d-Apex Pipeline to the Gulf Coast of Texas.

Readers can consult detailed reports on the Delaware Express and Apex Pipeline.

Elsewhere, Devon Energy made a final investment decision (FID) on the Solitude midstream network to bring gas into Katy, Texas.

Solitude would move forward in two phases, but will likely be completed before the end of the decade. The company said the new pipeline would allow it to tap into the growing demand for U.S.-sourced liquefied natural gas (LNG).

Some of that Permian gas is piped over the border to Mexico as well. In July, the Costa Azul LNG terminal on the Pacific Coast drew on Permian gas to help with its first-ever delivery in July. That marked the first time that U.S. gas was shipped in the liquid form from the Pacific Coast as most export terminals are centered along the U.S. Gulf Coast.

TotalEnergies, which holds a 16.6% stake in the project alongside operator Sempra Infrastructure, said it shipped the inaugural cargo to an unspecified Asian consumer.

The Permian is the second-largest gas producer, behind the Appalachia Basin. In its NATGAS Today report for Thursday, Industrial Info found Texas and New Mexico combined for about 26.6 Bcf/d in natural gas over the five-day period ending Thursday.

Key Takeaways

• Drillers are going longer and longer to get at what's left in the Permian
• Permian gas is playing a larger role in U.S. LNG exports

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About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news, and analysis on the industrial process, manufacturing, and energy-related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified, and verified plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).