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Released January 06, 2023 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--As global demand for crude oil continues to slump and with oil prices likely to follow suit, leading oil producers are bracing for a tougher market in the year ahead. While U.S. crude oil production is expected to average a record 12.34 million barrels per day (BBL/d) this year, many believe emerging economic trends could leave balance sheets in the red. Industrial Info is tracking nearly $4 billion worth of active oil-production projects across the U.S. that are set to kick off from now through the end of March.
Click on the image at right for a graph detailing the top 10 parent companies for first-quarter oil-production project starts across the U.S., by total investment value.
Ovintiv Incorporated (NYSE:OVV) (Calgary, Alberta), formerly known as Encana, accounts for more than 30% of the total first-quarter spending with just four projects. The company expects to begin drilling between 30 and 45 new wells at each of two locations in the Permian Basin of Texas: the Nichols A lease north of Karnes City and the Wessendorff lease east of Karnes City. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production Project Database can read detailed reports on the Nichols A and Wessendorff projects.
"The benefits of our approach are very evident in the Permian Basin," said Greg Givens, the chief operating officer of Ovintiv, in a recent quarterly earnings-related conference call. "We've studied the play extensively over the last eight years, delineating the asset by drilling across our entire acreage footprint and entering into extensive data trades with our peers in the Midland Basin. We are targeting up to six benches across the play, and we see further upside and additional prospective horizons."
Givens pointed to a 20% faster spud-to-first sales cycle time in the Permian, when compared with Ovintiv's 2021 average. Similar efforts to address operational efficiencies in Oklahoma's Anadarko Basin delivered a 25% faster spud-to-first sales cycle time in that area. Ovintiv is preparing to kick off a pair of oil-production projects in Anadarko's SCOOP play toward the end of the quarter: the Kingfisher County and Canadian County leases, each of which will involve drilling between 25 and 35 wells. Subscribers can read detailed reports on the Kingfisher County and Canadian County projects.
Other Permian projects include Diamondback Energy Incorporated's (NASDAQ:FANG) (Midland, Texas) $97 million Spraberry drilling program, which involves drilling 33 wells, of varying depths, across the Pecos Reeves Field to produce crude oil and natural gas. Subscribers can learn more from Industrial Info's project report.
Travis Stice, the chief executive officer of Diamondback, warned in a recent earnings call that the U.S. could be looking at a dimmer future for oil production: "I think there is asset maturation. I think certainly, supply chain constraints are also limiting growth. ... I think all of those factors weigh into more of a muted production growth from U.S. shale going forward. That said, out here in the Permian, I think we're still continuing to hit production records every month, somewhere close to 5.3 million to 5.5 million barrels a day. But that's going to be challenged to continue to grow that into the future."
Supply-chain bottlenecks and a possible recession were among the top concerns cited by 152 energy firm executives in a recent survey by the Federal Reserve Bank of Dallas. For more information, see January 4, 2023, article - Fear, Uncertainty Grip U.S. Shale Despite Price Optimism.
Chevron Corporation (NYSE:CVX) (San Ramon, California), which accounts for $800 million of spending from just two projects, made a final investment decision in second-quarter 2022 to develop its Ballymore offshore field development in the Gulf of Mexico, where the company expects to begin installing a riser this quarter. Chevron also expects to begin work on its Anchor oil-production platform in the Gulf of Mexico this quarter.
In a recent earnings-related conference call, Mike Wirth, the chief executive officer of Chevron, said the company expects to see first oil from Anchor in 2024 and Ballymore in 2025. Subscribers can read detailed reports on the Anchor and Ballymore projects.
Last year, Shell Offshore Incorporated (Shell), a subsidiary of Shell plc (NYSE:SHEL) (London, England), placed several of its assets in the U.S. Gulf of Mexico up for sale, in part so it could focus efforts on its Whale deepwater project in the Alamo Canyon area. The project has an estimated peak capacity of 100,000 barrels of oil-equivalent per day (BOE/d); the Whale field itself is estimated to contain 490 million BOE. Subscribers can learn more from Industrial Info's project report.
Subscribers to Industrial Info's GMI Project Database can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of reports for oil-production projects set to kick off across the U.S. in the first quarter.
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) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
Click on the image at right for a graph detailing the top 10 parent companies for first-quarter oil-production project starts across the U.S., by total investment value.Ovintiv Incorporated (NYSE:OVV) (Calgary, Alberta), formerly known as Encana, accounts for more than 30% of the total first-quarter spending with just four projects. The company expects to begin drilling between 30 and 45 new wells at each of two locations in the Permian Basin of Texas: the Nichols A lease north of Karnes City and the Wessendorff lease east of Karnes City. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production Project Database can read detailed reports on the Nichols A and Wessendorff projects.
"The benefits of our approach are very evident in the Permian Basin," said Greg Givens, the chief operating officer of Ovintiv, in a recent quarterly earnings-related conference call. "We've studied the play extensively over the last eight years, delineating the asset by drilling across our entire acreage footprint and entering into extensive data trades with our peers in the Midland Basin. We are targeting up to six benches across the play, and we see further upside and additional prospective horizons."
Givens pointed to a 20% faster spud-to-first sales cycle time in the Permian, when compared with Ovintiv's 2021 average. Similar efforts to address operational efficiencies in Oklahoma's Anadarko Basin delivered a 25% faster spud-to-first sales cycle time in that area. Ovintiv is preparing to kick off a pair of oil-production projects in Anadarko's SCOOP play toward the end of the quarter: the Kingfisher County and Canadian County leases, each of which will involve drilling between 25 and 35 wells. Subscribers can read detailed reports on the Kingfisher County and Canadian County projects.
Other Permian projects include Diamondback Energy Incorporated's (NASDAQ:FANG) (Midland, Texas) $97 million Spraberry drilling program, which involves drilling 33 wells, of varying depths, across the Pecos Reeves Field to produce crude oil and natural gas. Subscribers can learn more from Industrial Info's project report.
Travis Stice, the chief executive officer of Diamondback, warned in a recent earnings call that the U.S. could be looking at a dimmer future for oil production: "I think there is asset maturation. I think certainly, supply chain constraints are also limiting growth. ... I think all of those factors weigh into more of a muted production growth from U.S. shale going forward. That said, out here in the Permian, I think we're still continuing to hit production records every month, somewhere close to 5.3 million to 5.5 million barrels a day. But that's going to be challenged to continue to grow that into the future."
Supply-chain bottlenecks and a possible recession were among the top concerns cited by 152 energy firm executives in a recent survey by the Federal Reserve Bank of Dallas. For more information, see January 4, 2023, article - Fear, Uncertainty Grip U.S. Shale Despite Price Optimism.
Chevron Corporation (NYSE:CVX) (San Ramon, California), which accounts for $800 million of spending from just two projects, made a final investment decision in second-quarter 2022 to develop its Ballymore offshore field development in the Gulf of Mexico, where the company expects to begin installing a riser this quarter. Chevron also expects to begin work on its Anchor oil-production platform in the Gulf of Mexico this quarter.
In a recent earnings-related conference call, Mike Wirth, the chief executive officer of Chevron, said the company expects to see first oil from Anchor in 2024 and Ballymore in 2025. Subscribers can read detailed reports on the Anchor and Ballymore projects.
Last year, Shell Offshore Incorporated (Shell), a subsidiary of Shell plc (NYSE:SHEL) (London, England), placed several of its assets in the U.S. Gulf of Mexico up for sale, in part so it could focus efforts on its Whale deepwater project in the Alamo Canyon area. The project has an estimated peak capacity of 100,000 barrels of oil-equivalent per day (BOE/d); the Whale field itself is estimated to contain 490 million BOE. Subscribers can learn more from Industrial Info's project report.
Subscribers to Industrial Info's GMI Project Database can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of reports for oil-production projects set to kick off across the U.S. in the first quarter.
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) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
