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Permian production poised for boom, Pioneer Natural CEO says

Published 11/08/2016, 04:48 PM
Permian production poised for boom, Pioneer Natural CEO says
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PXD
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  • Oil production from the Permian Basin is poised to grow by 300K-500K bbl/day over the next year and eventually could reach 10M bbl/day, says Pioneer natural Resources (NYSE:PXD) CEO Scott Sheffield.
  • The Permian currently produces ~2M bbl/day and is the only major U.S. basin that has seen its production increase this year.
  • While the Permian is generally considered a tight-oil basin, Sheffield is particularly bullish on the potential to grow natural gas production: "What most people don't realize is the Permian basin is the second largest natural gas field in this country - at 7B (cf/day) already," adding that he expects production to eventually reach 15B cf/day.
  • The number of rigs working the Permian bottomed at 133 in mid-May and has since grown to 212 rigs today, and Sheffield sees operators adding another 75-100 rigs into the Permian in the next year if oil prices average $50/bbl.

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