Occidental Petroleum has once again demonstrated why it’s a leader in the oil and gas industry, achieving remarkable operational milestones during the third quarter of 2024. With record-breaking performances in the Permian Basin, cutting-edge advancements in the DJ Basin, and continuous improvements in drilling efficiency, Occidental is setting new benchmarks for innovation, productivity, and operational excellence. Here’s a closer look at their latest accomplishments.

Wolfcamp Development Project: A Game-Changer in the Delaware Basin

One of the standout achievements this quarter was the exceptional performance of the six-well Wolfcamp development project in the Tanks field, New Mexico. This project delivered an impressive 1.2 million barrels of oil in the first 90 days—a testament to the company’s strategic approach to geologic targeting and efficient development practices.

Occidental’s ability to optimize well design and leverage existing infrastructure in the Delaware Basin played a critical role in this success. This project highlights the untapped potential of secondary and tertiary benches, with infrastructure integration driving superior returns and reducing overall costs.

DJ Basin Two-Mile Lateral: Redefining Drilling Speed

Innovation was also evident in Occidental’s DJ Basin operations, where the company successfully drilled a two-mile lateral in just 80 hours. This achievement not only reflects the advanced technical capabilities of Occidental’s teams but also underscores the significant strides the company has made in reducing cycle times and accelerating production timelines.

The speed and efficiency of this lateral demonstrate the value of continuous improvement in well design and drilling execution. These advancements ensure that capital investments translate into production faster, enhancing Occidental’s competitive edge in a dynamic market.

Cycle Times: Driving Efficiency Across Operations

Occidental reported a 10% improvement in drilling cycle times for unconventional wells in the Permian Basin compared to the previous year. This reduction in cycle times reflects the company’s relentless focus on operational efficiency and innovation.

Improved cycle times have a cascading impact: they reduce well costs, accelerate time-to-market, and improve cash flow generation. In the DJ Basin, Occidental further demonstrated its ability to innovate, with well costs in the third quarter reduced by 20% compared to the first half of 2023.

These advancements are not just about saving time—they represent a strategic approach to optimizing the entire drilling process, from planning to execution.

Permian Basin: Record-Breaking Performance

The Permian Basin continues to be Occidental’s crown jewel, delivering record-breaking results in the third quarter of 2024. The company achieved the highest quarterly U.S. production in its history, with standout performance in both the Midland and Delaware Basins.

Key drivers of this success include:

CrownRock Integration: The seamless incorporation of the CrownRock assets bolstered production in the Midland Basin, with teams exceeding production guidance and achieving the highest quarterly output in over five years.
Secondary Bench Development: Occidental increased the proportion of secondary bench development in the Delaware Basin from 20% in 2023 to 40% in 2024. By leveraging existing infrastructure, the company achieved higher returns while managing costs effectively.
Operational Excellence: Enhanced uptime, strategic well targeting, and innovations in drilling techniques were instrumental in achieving these record-breaking results.

What This Means for the Future

Occidental’s operational achievements in the Wolfcamp formation, DJ Basin, and Permian Basin are a testament to its ability to combine innovation with strategic execution. These advancements are not just milestones but stepping stones toward a more efficient and sustainable future.

By improving cycle times, optimizing infrastructure use, and pioneering new drilling techniques, Occidental is well-positioned to continue delivering value for its stakeholders. As the company enters 2025, it is clear that the lessons and successes from this quarter will inform and inspire its operations across all basins.

Stay tuned as Occidental continues to lead the industry with cutting-edge projects, exceptional performance, and a commitment to operational excellence. The future of energy is being written one well at a time, and Occidental is firmly at the helm.