Permian crude production by play
According to the EIA (U.S. Energy Information Administration), Permian Basin production will increase to 4 million barrels per day by 2019.
The Wolfcamp Midland and Wolfcamp Delaware benches are expected to see the highest production growth compared to the Spraberry, Bone Spring, and other formations in the Permian. Both the Wolfcamp Midland and Wolfcamp Delaware are expected to add 1 million barrels per day in production by 2019.
According to a report by IHS Markit, among all the Wolfcamp Midland benches, Wolfcamp B is favored by operators. The report noted that the leading operator in the region in terms of the number of wells in the Wolfcamp (approximately 170) saw increased productivity, with an increase from 64 boe/d (barrels of oil equivalent per day) per 1,000 lateral feet in 2014 to 105 boe/d in 2016.
A separate report noted that the Wolfcamp Delaware on average has shorter lateral lengths than the Wolfcamp Midland. Companies with positions in the Wolfcamp benches include Apache (APA), Callon Petroleum (CPE), Cimarex Energy (XEC), EP Energy (EPE), and Parsley Energy (PE).
IHS Markit projects that the Permian region will increase its horizontal rig count by 32% from 2017 to 2022. We’ll look at the trends in Permian rigs in the next part of this series.