Industry Guides & How-To Resources with specific types of property or business. Check our valuable guides on this page today at Ranger Land & Minerals.

Operators in the Permian Basin continued leading the US both in growth and overall production of oil and gas.

2023 saw $103 billion in Permian Basin oil and gas mergers, report says

Continued Leading The U.S.

Operators in the Permian Basin oil and gas mergers continued leading the U.S. both in growth and overall production of oil and gas, with numbers expected to climb in February.

About 5,000 barrels of oil per day (bopd) were expected to be added in the basin in February, according to the Energy Information Administration (EIA), for a total of about 5.97 bopd.

January’s average was estimated at about 5.96 million bopd, the EIA reported.

The Permian Basin, located in West Texas and southeastern New Mexico, continues to solidify its position as a dominant force in the global energy market. The latest report on shale basin production has revealed an impressive forecast for the Permian Basin’s daily production next month. In fact, the projected output for this region exceeds the combined production of every other shale basin mentioned in the report.

The Most Prolific Shale Basin

This remarkable achievement further cements the Permian Basin’s status as the most prolific shale basin in the United States. With its vast reserves of oil and natural gas, coupled with advancements in drilling technology, the Permian Basin has experienced a rapid expansion of production capacity in recent years. This growth has not only contributed significantly to the domestic energy supply but has also positioned the United States as a key player in the global energy landscape. The Permian Basin’s consistently high production numbers have garnered attention from investors and industry experts, who recognize the region’s potential for continued growth and profitability.

Furthermore, the Permian Basin’s success can be ascribe to several factors. Firstly, the region boasts a favorable geology that facilitates the extraction of oil and gas resources. The basin’s multiple stacked shale formations, including the Wolfcamp and Spraberry formations, provide ample opportunities for drilling and production. Additionally, the Permian Basin benefits from a well-established infrastructure network, including pipelines, refineries, and storage facilities, which allows for efficient transportation and processing of the extracted resources.

Not limited To Its Impressive Production

Moreover, the Permian Basin’s success story is not tight to its impressive production numbers alone. The economic impact of this booming industry extends beyond job creation and tax revenue. The increased production has led to a surge in investment and development activities, driving economic growth in the surrounding communities. Local businesses, service providers, and educational institutions have all benefited from the influx of capital and job opportunities generated by the Permian Basin’s energy sector.

In conclusion, the Permian Basin’s forecasted daily production for next month surpasses the combined output of all other shale basins mentioned in the report. This achievement solidifies the Permian Basin’s position as the leading shale basin in the United States and underscores its significance in the global energy market. With its favorable geology, robust infrastructure, and positive economic impact, the Permian Basin continues to be a driving force in the energy sector, attracting investment and contributing to the nation’s energy security and economic growth.

Click here to read the full article
Source: Carlsbad Current Argus

—

If you have any questions or thoughts about the “Oil and Gas Mergers” topic, feel free to contact us here or leave a comment below.

Merger and acquisition activity among exploration and production companies hit $144B in the fourth quarter alone and $190B for 2023.

The oil and gas industry is undergoing its biggest-ever consolidation

  • The oil and gas industry is undergoing its biggest-ever consolidation, according to Enverus.
  • Upstream merger and acquisition activity hit $144 billion in the fourth quarter alone. And $190 billion for 2023, both setting records.
  • Bids from Exxon Mobil, Chevron, and Occidental Petroleum were among the key deals fueling the record.

The upstream oil and gas sector is consolidating at a record pace. As companies race to secure longevity in the market.

Merger and acquisition activity among exploration and production companies hit $144 billion in the fourth quarter alone. And $190 billion for 2023, both setting records, according to analytics firm Enverus.

“Oil and gas is undergoing a historic consolidation wave comparable to what occurred in the late 1990s and early 2000s giving rise to the modern supermajors.” Senior Vice President Andrew Dittmar said in a press release. “After a decade of lowered investment in exploration and with the major US shale plays largely defined, M&A has become the preferred tool to replace declining reserves and secure longevity in these companies’ profitable upstream businesses.”

In the fourth quarter, bids from Exxon Mobil, Chevron, and Occidental Petroleum. Were among the key deals fueling the record-setting consolidation.

M&A activity was overwhelmingly focused on oil last year. Totaling $186 billion in deals, while $6 billion targeted gas, according to Enverus.

Interest in the latter will likely grow as the US industry is working on increasing its liquefied natural gas exports over the next three years.

Click here to read the full article
Source: yahoo!finance

—

If you have any questions or thoughts about the “Oil & Gas Industry” topic, feel free to contact us here or leave a comment below.

U.S. Energy Policy Must Support Natural Gas In Appalachia And West Texas

The Main Reasons

U.S. Energy Policy – Appalachia and the Permian are the main reasons why U.S. C02 emissions have been falling faster than any other nation.

According to the International Energy Agency (IEA), despite the implementation of stringent environmental policies, gas usage continues to increase. The IEA’s modeling shows that even with measures in place to reduce greenhouse gas emissions and promote renewable energy source. The demand for natural gas is on an upward trend. This finding highlights the challenges faced in transitioning to a more sustainable energy system. While meeting the growing energy needs of a global population.

The Key Reasons

One of the key reasons for the increasing gas usage is its versatility and relatively lower carbon emissions compared to other fossil fuels. Natural gas is widely used for electricity generation, heating, and industrial processes, making it a crucial component of the global energy mix. Additionally, as countries seek to reduce their reliance on coal and oil, natural gas is often seen as a cleaner alternative and a bridge towards a low-carbon future. This perception has led to significant investments in gas infrastructure and exploration, further driving its consumption.

However, it is important to note that the continued reliance on natural gas poses challenges for achieving long-term sustainability goals. While it may be a cleaner option compared to coal and oil, natural gas is still a fossil fuel and contributes to carbon dioxide emissions. As such, it is crucial to balance the short-term benefits of natural gas with long-term environmental concerns. This requires a comprehensive approach that combines the use of cleaner-burning technologies, increased energy efficiency, and a gradual transition towards renewable energy sources. By doing so, we can mitigate the environmental impacts associated with gas usage and work towards a more sustainable energy future.

 

Read the full article here
Source: Forbes.com

 

If you have further questions related to the topic, feel free to reach out to us here.

The BLM WY State Office has opened a 30-day public scoping period to receive public input on 5 oil & gas parcels that may be included in a Sept. 2024 lease sale in WY

BLM seeks public comment for oil and gas lease sale in Wyoming

A 30-day Public Scoping Period

The Bureau of Land Management Wyoming State Office has opened a 30-day public scoping period. To receive public input on 5 oil and gas parcels totaling 239.38 acres. That can be incorporate in a September 2024 lease sale in Wyoming. The comment period ends February 15, 2024.

The parcels the BLM is analyzing, as well as maps and instructions on how to comment are available on the BLM’s ePlanning website at: https://eplanning.blm.gov/eplanning-ui/project/2030553/510.

A New Royalty Rate

oil & gas lease sale

As authorized under the Inflation Reduction Act. The Bureau of Land Management (BLM) is implementing a new royalty rate of 16.67 percent. For production on any new leases resulting from this sale. This move is focus at ensuring a fair and equitable collection of royalties on oil and gas extracted from federal lands.

The decision to implement this rate aligns with the BLM’s mandate to manage public lands in a responsible manner, striking a balance between promoting energy development and safeguarding the interests of taxpayers and the environment.

BLM’s online fact sheet

To gain a comprehensive understanding of the Inflation Reduction Act and its implications. Interested stakeholders are hearten to refer to the BLM’s online fact sheet. This fact sheet provides detailed information on the key provisions of the Act. Including its objectives, the rationale behind the royalty rate adjustment, and the expected impact on revenue distribution.

It serves as a valuable resource for industry professionals, state officials, and the public at large. Facilitating transparency and enabling informed decision-making regarding oil and gas leasing activities on federal lands. Notably, the generated revenues from these leases will be split between the respective state. Where the drilling occurs and the U.S. Treasury. Make certain that the financial benefits of energy production are shared among relevant stakeholders and contribute to the nation’s overall economic growth.

Click here to read the full article
Source: The Cheyenne Post

—

If you have any questions or thoughts about the “oil and gas lease sale” topic, feel free to contact us here or leave a comment below.

In 2023, upstream oil and gas saw significant increases in hiring with the job count growing by 15,300 jobs for the year.

Oil & gas jobs in Texas continued strong growth to close out 2023

Data released by the Texas Workforce Commission indicates that upstream oil and gas employment in Texas continues to grow. With the sector adding 31,00 jobs in December. In 2023, upstream oil and gas jobs saw significant increases. In hiring with the job count growing by 15,300 jobs for the year.

“2023 was an incredibly solid year for upstream oil and gas job growth, despite global economic uncertainties that have held back strong price signals, and the year finished with a continued upward push on job expansion,” said Todd Staples, president of the Texas Oil & Gas Association. “These jobs, along with the associated activity in local communities that generates tremendous growth opportunities. Benefit every part of Texas and continue to be the cornerstone of the Texas economy.”

Since the COVID-low point in September of 2020. Months of increase in upstream oil and gas employment in Texas have outnumbered months of decrease by 33 to 6. In that time, industry has added 54,700 Texas upstream jobs, an average growth of 1,403 jobs a month.

These jobs pay among the highest wages in Texas. With employers in oil and natural gas paying an average salary of approximately $124,000 in 2023.

Click here to read the full article
Source: Texas Insider

—

If you have any questions or thoughts about the “Oil & Gas Jobs” topic, feel free to contact us here or leave a comment below.

As the shale industry matures, the biggest oil and gas producers, with their efficiencies and lower cost of capital, are moving in.

Changing of the guard in the Permian

As the shale industry matures, the biggest oil and gas producers, with their efficiencies and lower cost of capital, are moving in.

 

When extraction of oil and gas from shale deposits took off a dozen years ago. It sparked a revolution that enabled the U.S. to become a global mega-producer of fossil fuels due to technological breakthroughs in hydraulic fracturing and horizontal drilling. Now, energy analysts say, the guard is changing as shale production matures and the capital requirements to maintain production intensify.

Changing of the guard in the Permian

Shale now accounts for 10% of worldwide crude oil and 32% of global natural gas that is currently recoverable, according to the U.S. Energy Information Administration. West Texas’s Permian Basin is the second largest oil field in the world, behind Saudi Arabia’s giant Ghawar field. That makes the Permian the dynamic center of oil and gas extraction in the U.S., and the place where this latest chapter of the energy saga is being written.

Sold Out To The Oil-And-Gas Majors

In a series of major deals last fall, some of the pioneers of shale production in the region sold out to the oil-and-gas majors, greatly consolidating the U.S. industry. Highlighting the trend were Exxon Mobil’s $60 billion purchase of Pioneer Natural Resources in October and Occidental Petroleum’s $10.8 billion deal to buy CrownRock in December. Oil and gas deals totaled more than $250 billion last year, the largest figure in nearly 10 years.

These deals are big, and expensive—Oxy is paying some $5 million per location for CrownRock’s assets, which Andrew Dittmar, a director at Enverus Intelligence Research, described a “nose-bleed territory”—but are unlikely to move the needle on global oil prices more than marginally. Their real importance, analysts say, is in what they signal about shale production in the Permian over the remainder of the decade.

 

Click here to read the full article
Source: Global Finance

 

—

 

If you have any questions or thoughts about the “Changing of the guard” topic, feel free to contact us here or leave a comment below.

The Permian Basin produced nearly 6M barrels of oil a day in 2023. That’s more than Iraq, the UAE or Kuwait, according to Peter McNally.

Oil-rich Permian Basin attracts buyers with resources

2023 was a big year for the U.S. oil and natural gas business. The country, Oil-rich Permian Basin, remained the world’s largest oil producer for the sixth straight year, and a wave of consolidation swept through the industry. A good chunk of that merger and acquisition activity was concentrated in the Permian Basin of West Texas and New Mexico, which has been helping the U.S. hold on to the world’s top spot.

Oil-rich Permian BasinThe Permian Basin produced nearly 6 million barrels of oil a day in 2023. That’s more than Iraq, the United Arab Emirates or Kuwait, according to Peter McNally, analyst at Third Bridge.

“This year was another new high, you know, for the Permian. And that has attracted a lot of interest,” he said.

The Permian Basin has another thing going for it. “It’s almost like real estate: location, location, location,” said Robert McNally of consulting firm Rapidan Energy.

Industry-friendly regulation in Texas is part of that. There’s also less federal regulation when it comes to exporting the oil because it doesn’t have to cross state lines.

 

Click here to read the full article
Source: Marketplace

—

If you have any questions or thoughts about the “Oil-rich Permian Basin” topic, feel free to contact us here or leave a comment below.

Last year was big for Texas oil companies as they jockeyed for access to petroleum-rich plots of the Permian Basin and branched into new territories.

How a spree of oil and gas mergers are setting the stage for 2024

The Spree of Oil and Gas Topic. Last year was big for Texas oil companies as they jockeyed for access to petroleum-rich plots of the Permian Basin and branched into new territories.

Recent megadeals struck by Chevron and Exxon put pressure on others in the oil industry to catch the consolidation wave, potentially kicking off a new round of mergers and acquisitions that could have a profound impact on Houston for years to come. Additionally, milestone acquisitions made by Exxon and Occidental Petroleum in the carbon capture space also set the stage for Houston to be ground zero for the growing industry.

Exxon to buy Pioneer for $59.5 billion

Exxon said in October that it would buy Irving-based Pioneer Natural Resources for $59.5 billion in the oil giant’s largest deal since it merged with Mobil more than two decades ago. Expected to be settle in 2024, the deal would make Spring-based Exxon the largest operator in the Permian Basin of Texas and New Mexico and bring the company’s daily production to almost 4.5 million barrels of oil equivalent a day — 50% more than the next largest supermajor.

Source: Houston Chronicle

—

If you have any questions or thoughts about the Spree of Oil and Gas Topic, feel free to contact us here or leave a comment below.

The US oil industry is now in a post-boom era, focusing on smart growth aligned with demand rather than rapid expansion.

US Oil Industry’s Year: 2023 may have been the best year yet

Last year, U.S. oil industry or crude oil production broke another record. This in itself is not exactly news. The shale oil industry has been breaking records for breakfast for years. But that was before the pandemic.

After the pandemic, many pronounced the shale boom dead. Of course, those same people found out in 2023 that this wasn’t strictly true. Despite a continued focus on capital discipline and the flurry of cash they returned to shareholders, U.S. drillers managed to boost their overall output to over 13.2 million barrels daily in September. And they did it with fewer rigs, at that. And with zero—if not negative—support from the federal government.

“Smart money knows to never bet against this industry,” Tim Stewart, President of the US Oil & Gas Association, recently told David Blackmon, energy industry vet and Forbes author. “We are going to be around a lot longer than any politician. Why is that? Because we produce wealth while they produce nothing.”

Indeed, if 2023 proved anything that many may have suspected, it was that an industry does not need a friendly government to flourish—at least when it comes to the oil industry, that is. Alternative energy industries, on the other hand, do need government support to survive.

 

Click here to read the full article
Source: Oil Price

—

If you have any questions or thoughts about the topic, feel free to contact us here or leave a comment below.

Amidst attacks on US energy production and continued global instability, the US oil & natural gas industry exceeded expectations in 2023.

US oil & gas industry continues to innovate despite headwinds in 2023

Amidst attacks on U.S. energy production and continued global instability, the U.S. oil and natural gas industry managed to not only meet but exceed expectations in 2023. The industry broke production records and supplied critical energy resources at home and abroad, all while reducing methane emissions.

Oil and Gas Industry Continues to Innovate Amid Record Production

US oil & gas industry

 

In 2023, the oil and natural gas sectors continued to innovate and reach record breaking levels of production. After becoming a net energy exporter in 2019, the United States has emerged as a behemoth in the global energy market, hitting prolific levels of oil and natural gas production and exports in the past year.

U.S. liquified natural gas (LNG) had a tremendous year with the United States becoming the top LNG exporter in the world.

 

 

These record-breaking levels of production have not come at the expense of Americans as some activists claim. To the contrary, record energy production levels have successfully been able to meet both domestic and international demand, providing crucial energy security at home and abroad, all while keeping prices stable.

Click here to read the full article
Source: Energy in Depth

 

 

—

If you have any questions or thoughts about the topic, feel free to contact us here or leave a comment below.