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Concho sells Permian assets to Houston’s Spur Energy for $925M

Houston Chronicle: By Jordan Blum - Published 8:37 am CDT, Tuesday, September 3, 2019 Midland’s Concho Resources said Tuesday it will sell its more mature Permian Basin assets in New Mexico for $925 million to the Houston startup Spur Energy Partners. Concho, which has struggled financially of late, will use the funds to cut down on debt and initiate a share buyback program to help appease Wall Street, while Spur Energy will keep building its foothold in the Permian’s northwestern shelf, which is outside of the booming Delaware Basin in New Mexico. Concho said it’s starting a share repurchase effort of up to $1.5 billion to help boost the company’s stock. The sale includes about 100,000 gross acres producing 25,000 barrels of oil equivalent a day. Concho will keep its large presence in the Delaware Basin in New Mexico. Read...

A Well-Kept Secret: The US Has Become an ‘Energy Superpower’

CBN.com: 08-13-2019 - Heather Sells   PERMIAN BASIN, Texas – Many Americans don’t know that over the last few years the US has become an energy super-power and that much of the growth comes from a remote region in Texas that you’ve probably never heard of. 20 years ago, big oil was pulling out of the Permian Basin. Today it’s the reason the US is the top oil and gas producing country in the world. Todd Staples, the president of the Texas Oil and Gas Association, is only too happy to talk about what’s happening here. Read...

Drilling Down: Pioneer’s big bet on the Midland Basin

Houston Chronicle: By Sergio Chapa - Updated 5:00 am CDT, Monday, August 12, 2019 Irving oil company Pioneer Natural Resources is betting on its leases in the eastern end of Permian Basin. Pioneer filed for eight drilling permits over the past week to develop horizontal wells on seven leases split between Midland and Upton counties. Located in an area of the Permian known as the Midland Basin, the wells target the Spraberry formation down to depths of 10,531 feet. During a recent investors call, Pioneer Natural Resources Chief Executive Scott Sheffield said the western end of the Permian, known as the Delaware Basin, is being drilled “too aggressively.” Read...

Western Midstream names new leadership to “grow alongside Occidental” following acquisition

WorldOil.com - 8/9/2019 HOUSTON - Western Midstream Partners (WES) announced that Michael P. Ure has been named president & Chief Executive Officer and Craig W. Collins has been named senior vice president & Chief Operating Officer of WES. Mr. Ure previously served as Senior Vice President of Business Development for Occidental and Mr. Collins is returning to WES having previously served as senior vice president & Chief Operating Officer of its predecessor, Western Gas Partners, LP from 2017 to 2018. Mr. Ure and Mr. Collins are succeeding Robin H. Fielder and Gennifer F. Kelly, respectively, in connection with the recently completed acquisition of Anadarko by Occidental. Jaime R. Casas, senior vice president, chief financial officer & treasurer, and John D. Montanti, vice president, general counsel & corporate secretary, will remain in their current positions. “Occidental sees great value and opportunity in the excellent WES asset base and is committed to value-enhancing opportunities for both companies,” said Vicki Hollub, president and CEO of Occidental. Read...

New laws could pump billions of dollars into Permian Basin’s rapidly growing water recycling industry

Houston Chronicle - Business / Energy: Sergio Chapa Aug. 2, 2019 Whether by pipeline tanker, truck or hose, more water is moving around the arid Permian Basin than crude oil at any given moment. Water has become the lifeblood of the modern energy industry with hydraulic fracturing using high-pressured slurry of water, sand and chemicals to unlock oil and gas from shale formations in Texas and across the country. In the arid Permian Basin, the nation’s most productive oil field, drilling and fracking operations consume more than 195 million gallons of water per day in West Texas and southeastern New Mexico — enough water to fill nearly 300 Olympic-sized swimming pools. All this has made water and water management in the Permian a big business that’s only expected to get bigger, following the recent enactment of three laws in Texas and New Mexico, the two states encompassing the sprawling oil basin. The laws, which essentially clarify water rights issues and encourage the reuse of water, could pump billions more dollars of investment into the region’s rapidly growing water recycling industry. Read...

Permian Needs $9 Billion Worth of New Wells—But Not for Crude

Blloomberg-Business-By David Wethe - July 29, 2019, 9:47 AM EDT As much as $9 billion will be needed over the next decade just to throw away dirty water in the world’s busiest shale field, according to Raymond James & Associates Inc. The scale of the challenge is mind-boggling: drillers typically pump 30 Olympic-sized swimming pools of water into an oil well to fracture the surrounding rocks. In return, as much as 10 barrels come rushing back out for every one barrel of crude, Raymond James analyst Marshall Adkins said in a note to clients on Monday. Given that recycling efforts aren’t robust enough to handle the 17.5 million barrels of dirty water produced DAILY in the Permian Basin of West Texas and New Mexico, oil companies have to do something else with all that salty slurry, Adkins said. After all, so-called produced water is 10 times saltier than seawater and can be tainted with heavy metals and radioactivity. “Most investors are simply unaware of the fact that as crude production grows, produced ‘dirty’ water grows even faster,” he wrote. “As the Permian Basin shifts further into manufacturing mode, the water growth we project will create the need for nearly 1,000 additional salt water disposal wells by 2030.” Read...