The Big Oil companies Exxon Mobil and Chevron are keeping their promises to dominate the Permian Basin
Exxon Mobil has, by far, become the Permian’s most active driller with more than 50 rigs operating in the West Texas oil field. It is increasing production thereby nearly 90 percent in 12 months. Chevron, along with Occidental Petroleum of Houston, is one of just two companies producing more than 420,000 barrels of oil. It is equivalent per day from the region, the companies said Friday in their quarterly earnings reports.
The Permian, now the world’s most productive oil and gas basin, is producing about 4.2 million barrels of crude oil a day, more than one-third of the nation’s record output of more than 12 million barrels a day. The basin, by far the central focus of the shale boom, also is the country’s second-most prolific natural gas producer.
Small and midsize oil firms led the so-called shale revolution, proving horizontal drilling and hydraulic fracturing techniques. Exxon and Chevron — and energy majors generally — came to shale slowly, but now they are using their deep pockets, size and diversified income to continue to invest in drilling projects in the Permian and drive growth there. To a lesser extent, the European energy majors Royal Dutch Shell and BP also are focusing on Permian growth.
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Source: businessreport.com
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