Rystad Energy: Three trends to sway shale growth in 2019
HOUSTON -- With U.S. shale activity in 2019 beset by uncertainty, Rystad Energy identifies three trends for U.S. light tight oil production that will have a profound impact on the evolution of the industry in 2019 and 2020:
- New Mexico emerging as a rising star: New Mexico has quietly emerged as the new core area of unconventional liquid development in the U.S. Light tight oil production in New Mexico has increased by about 70 percent year-on-year, from 419,000 bpd in November 2017 to 703,000 bpd in November 2018.
- A faster expansion among private operators and majors compared to public E&P players: Majors and private operators outperformed pure-shale E&P players in 2018. Majors achieved a staggering 64-percent year-on-year average production expansion as of November 2018, while private operators increased their combined unconventional output by 44 percent in the same period, twice as much as pure-shale public E&P managed.
- A steepening decline in base production that could impede output growth over the next two years: Base decline is the pace at which production falls if no new wells are completed. According to Rystad Energy's forecast, if no new wells are completed in 2019-2020, light tight oil production is projected to decline by 62 percent, or 4.5 million bpd.
For more information, visit www.rys tadenergy.com or call +47 22 42 98 91.
Exxon, Microsoft strike cloud computing agreement for U.S. shale
IRVING, Texas -- ExxonMobil has made a new partnership with Microsoft that will make its Permian Basin operations the largest-ever oil and gas acreage to use cloud technology and is expected to generate billions in net cash flow over the next decade through improvements in analyses and enhancements to operational efficiencies.
The application of Microsoft technologies by ExxonMobil's XTO Energy subsidiary is anticipated to improve capital efficiency and support Permian production growth by as much as 50,000 boe/d by 2025.
ExxonMobil's application of these technologies in its Permian Basin acreage, which covers a 9.5-billion-oil-equivalent-barrel resource base and more than 1.6 million acres, represents industry's largest acreage position using cloud technology.
For more information, visit http:// corporate.exxonmobil.com or call (972) 940-6007.
Howard Energy Partners, NextEra Energy Partners agree to JV
SAN ANTONIO and JUNO BEACH, Fla. -- Howard Energy Partners (HEP) and NextEra Energy Partners have entered into a joint venture (JV) to develop additional natural gas transportation opportunities in the Eagle Ford shale region of South Texas.
The joint venture intends to market capacity on NextEra Energy Partners' Eagle Ford Midstream system (EFM) and HEP's Eagle Ford Gathering system (EFG) and to evaluate additional pipeline opportunities in an area of mutual interest, which includes Webb, Duval, Zapata, Dimmit, La Salle, McMullen, Live Oak and Jim Wells counties.
"The connection to NextEra Energy Partners' EFM system provides an efficient option to expand capacity on our EFG system, as well as providing our producers a direct link to Agua Dulce, bringing new supplies to the emerging markets in Mexico and the Texas Gulf Coast," said HEP Chairman and CEO Mike Howard.
For more information, visit www. howardenergypartners.com or call (210) 737-4478.
Study reveals benefits, impacts of Bakken oil, gas taxes to N.D.
BISMARCK, N.D. -- The North Dakota Petroleum Council and the Western Dakota Energy Association recently released the results of a North Dakota oil and gas tax revenue study they jointly sponsored. The purpose of the study was to review the oil and gas extraction and gross production tax collections by the state of North Dakota from 2008-2018 and to detail where and how that funding has been used.
From 2008-2018, oil and gas extraction and production taxes have raised almost $18 billion for the state, which accounts for almost 44 percent of total tax revenues collected by the state during that period. Over the past five years alone, oil and gas extraction and production taxes accounted for more than 50 percent of all tax revenues collected by the state.
For more information, visit www. ndoil.org or call (701) 223-6380.