Market Research Report
Permian Basin in the US, 2020 - Oil and Gas Shale Market Analysis and Outlook to 2022
|Published by||GlobalData||Product code||963045|
Delivery time: 1-2 business days
|Permian Basin in the US, 2020 - Oil and Gas Shale Market Analysis and Outlook to 2022|
|Published: October 1, 2020||Content info:||
The Permian Basin has been the most affected play in the US since the beginning of the Covid-19 pandemic. At its peak in March 2020, the Permian had 405 drilling rigs. Currently, there are just 125 drilling rigs in the area as of September 2020. The play also witnessed a drastic drop in its output from 4.85 million barrels per day (mmbd) in March 2020 to 3.89 mmbd in May 2020.
With the contraction in demand for both crude oil and oil product persisting for a prolonged period of time due to COVID-19, there has been a look out for potential acquisitions with the goal of consolidating operations to lower costs. Chevron's US$13 billion acquisition of Noble Energy, including debt is one of the largest transactions in 2020. Although several synergies are created through this transaction, Chevron was also attracted by Noble's Permian acreage of 92,000 acres that are in close proximity to Chevron's acreage especially since its plan to acquire Anadarko fell through last year. Another relevant deal in the Permian is the recent US$2.6 billion all-stock merger involving Devon Energy and WPX Energy. Both the companies have majority of their portfolio coming from Permian basin and have overlapping acreage. This merger is beneficial for both companies as they could combine operational expertise in Permian operations, even though it might result in a reduction in their workforce.
The report analyzes the crude oil and natural gas appraisal and production activities in the Permian Basin in the US. The scope of the report includes -