The incredible first-quarter profits were reported by top U.S. shale producers at the beginning of May. As oil prices churned at the highest levels in years, lots of money was poured into higher dividends and share buybacks.
A large number of energy companies are going to increase capital spending for a second year in a row in 2022 as the oil prices are up about 47% so far this year to about $110 a barrel, after soaring 55% in 2021.
Meanwhile, oil output in the Permian Basin in Texas and New Mexico is supposed to go up 88,000 bbl/d to a record 5.219 million bbl/d in June, as the U.S. Energy Information Administration (#EIA) announced in its report on May 16.
Additionally, gas productivity in the Permian Basin and the Haynesville in Texas, Louisiana and Arkansas will rise to record highs of 20 Bcf/d and 15.1 Bcf/d in June, respectively.
The rig count climbed for a record 21 months in a row through April. Nevertheless, weekly increases have mostly been in single digits and oil production is still far below pre-pandemic record levels. Moreover, crude production was aimed to rise from 11.2 million barrels per day (bpd) in 2021 to 12.0 million bpd in 2022 and 13.0 million bpd in 2023, according to federal energy data.
Given that this growth has been expected, recent global market changes make forecasting the output even more challenging. Learning how production will change is easier with early activity tracking, a new service recently launched by Rextag – Pad Activity Monitor.
#PAM helps to get the whole information about potential increases or decreases in oil and gas production months ahead of others. Moreover, customers have the opportunity to see how potential volumes could impact storage and transportation across the Permian Basin.
It is noticed that productivity in the largest oil and gas basins has decreased every month since setting records of new oil well production per rig of 1,544 bbl/d in December 2020 in the Permian Basin. In June, EIA predicts new oil well production per rig will drop to 1,129 bbl/d in the Permian Basin, the lowest since August 2020.
That left total DUCs down 70 to 4,223, the lowest since at least December 2013, as claimed by EIA data going back that far. The number of DUCs available has dropped for 22 months in a row.
With the help of PAM, you are able to monitor well pad clearing, drilling operations, fracking crew deployment and completions with new data collected approximately every 2 days. Additionally, it cuts down activity reporting lag times by at least 98%, from 120-180 days down to just 5-8 days.
Thanks to satellite imagery and artificial intelligence, customers are able to monitor the oil and gas wells and are provided with near real-time activity reports related to drilling operations.
This service collects frequent optical and radar-based satellite imagery which are processed by fusing several advanced AI algorithms. This algorithm is specifically designed and trained to recognize oil and gas activity at the well pad level.
In order to access reports, charts, tables, and mapping visualizations via Rextag's Energy DataLink use a web-based application allowing users to filter, download and identify activity on a map or data table. Moreover, customers will be able to set up daily, weekly, and monthly email report notifications.
