The latest Baker Hughes Rig Count report highlights a steady landscape for drilling activity across the United States and Oklahoma, with no overall change in the national rig count this week. While the number of oil rigs remained stable, slight shifts in gas and miscellaneous rigs contributed to regional variations.
The Permian Resources Drilling Report for 2024 reveals substantial drilling activity by rigs like H&P 313 and H&P 375, which collectively drilled over 50 wells across counties in New Mexico and Texas. This high level of productivity aligns with industry trends that prioritize high-specification rigs for complex projects. High-spec rigs, equipped to execute extended laterals and maximize resource recovery, are crucial for improving drilling rates and operational efficiency.
Trinity Operating, a notable operator in the Eagle Ford Shale, has acquired air permits through Texas Commission on Environmental Quality’s (TCEQ) New Source Review (NSR) program. Specifically, these transitions involve permits initially held by Escondido Resources II LLC. The permits pertain to facilities like the Spohn Compressor Station and Stokes Krueger 1H, essential infrastructure supporting upstream oil and gas operations.
ExxonMobil aims to double its production in the Permian Basin, targeting approximately 2.3 million oil-equivalent barrels per day (Moebd) by 2030. This milestone would represent a significant leap in the company’s upstream output, emphasizing the Permian’s critical role as a growth engine. With this goal, ExxonMobil is poised to solidify its leadership in one of the world’s most prolific oil and gas regions.
A recent noteworthy transaction highlights the transfer of air permits from Great Western Drilling Ltd. to Basin Oil & Gas Operating, LLC. This transfer involves a variety of facilities and projects loacated in the Permian Basin, emphasizing the importance of regulatory adherence in the sector.
Kinetik Holdings Inc. (NYSE: KNTK) (“Kinetik” or the “Company”) has announced a strategic acquisition of natural gas and crude oil gathering systems from Permian Resources Corporation (NYSE: PR) (“Permian Resources”) for $180 million in cash.
The New Mexico Environment Department (NMED) fined Targa Northern Delaware LLC $47.8 million and mandated $140 million in facility upgrades for excessive emissions at the Red Hills Gas Processing Plant, which released nearly 2 million pounds of pollutants beyond permitted levels.
Chevron Corp.’s decision to scale back production growth in the Permian Basin signals a pivotal moment for the U.S. shale industry, reflecting a broader shift toward financial discipline over rapid expansion. The move, which includes reducing capital expenditures by as much as 10% in 2025, highlights a maturing oil sector prioritizing shareholder returns and free cash flow amid fluctuating global demand.
The energy industry is undergoing a seismic shift, with advancements in drilling technology and practices leading the charge toward enhanced efficiency, precision, and sustainability. Companies like Devon Energy, EOG Resources, and Ovintiv are harnessing cutting-edge solutions to streamline operations, reduce costs, and maximize resource recovery. Here’s how the industry is transforming its approach to drilling.
In 2024, XTO Energy, a subsidiary of Exxon Mobil, made headlines with its strategic decision to divest oil and gas facilities across key regions in the United States. This move reflects a broader trend within the energy sector, as companies reposition themselves to maximize value from their most competitive assets. Among the most notable transactions this year was XTO’s sale of its facilities in the Freestone Trend area of East Texas to Houston-based Hilcorp Energy.
