Our primary focus is on the West Texas Permian Basin onshore.
THE PERMIAN BASIN
The Permian region, in western Texas and extending into southeastern New Mexico, has been one of North America’s major oil and natural gas producing regions for nearly a century. What makes the Permian stand out, besides its size, is its huge diversity. Rather than a single play, it is a collection of regional conventional and unconventional plays, producing from a variety of geological formations covering a wide area in more than a dozen productive formations.
Permian wells produce in depths ranging from a few hundred feet to tens of thousands of feet. For calendar year 2012 (the most recent total production year available),the Texas Permian Basin’s crude oil production accounts for 57 percent of Texas’ statewide total crude oil production or approximately 430 million barrels. For all Texas liquid production including crude oil and condensate (condensate is the liquid hydrocarbons produced with natural gas including butane, propane, etc.), the Permian Basin represents 51 percent of the total statewide Texas liquid production or approximately 509 million barrels of crude oil plus condensate), per current Commission production reports. The Permian Basin accounts for 14 percent of the total annual U.S. oil production or approximately 2 billion barrels according to data obtained from the U.S. Energy Information Administration . The USGS’s 2007 estimate of technically recoverable reserves of 1.0 billion barrels of conventional oil and 1.3 billion barrels of unconventional oil likely vastly understates the Permian’s potential with current technology.
According to the U.S. Energy Information Administration, production from West Texas is set to hit 1.3 million barrels a day. Further projections claim that production could soon double to 3 million bpd by 2025 – rivaling that of Kuwait.