Page 11 - NorthAmOil Week 20 2022

NorthAmOil PERFORMANCE NorthAmOil

EIA forecasts record-high Permian oil output

US THE US Energy Information Administration the Permian and the Eagle Ford. Record highs
(EIA) is predicting oil output from the Permian are projected for gas output in the Permian and
Basin, which spans Texas and New Mexico, will Haynesville regions, at 20.0 bcf (567.5 mcm) per
jump by 88,000 barrels per day (bpd) on May to day and 15.1 bcf (427.7 mcm) per day respec-
hit a record 5.22mn bpd in June. tively in June.
Total output from the seven main US shale Despite the output increases, though, pro-
regions is also forecast to rise in the agency’s ductivity continues to fall in the US’ biggest
latest Drilling Productivity Report (DPR). The shale regions, according to the EIA’s data. A
EIA projects output will increase by 142,000 bpd steady decline in productivity has been seen each
to reach 8.76mn bpd in June, which would rep- month since the Permian set a record of new oil
resent the highest level since March 2020. The well production per rig of 1,544 bpd in Decem-
Permian is expected to account for the majority ber 2020, and new gas well output per rig of 33.3
of this, though a monthly increase of 27,000 bpd mmcf (943,056 cubic metres) per day in March
in the Eagle Ford and 17,000 bpd in the Bakken 2021 in Appalachia.
will also contribute. The EIA expects this trend to continue in
Across the seven shale regions, total nat- June, with new oil well production per rig antic-
ural gas is forecast to rise by 750mn cubic feet ipated to fall to 1,129 bpd in the Permian, down
(21.2mn cubic metres) per day in June to reach slightly from 1,142 bpd in May. Similarly, new
a record high of 91.75 bcf (2.60bn cubic metres) gas well production per rig in Appalachia is
per day. expected to drop to 28.5 mmcf (807,290 cubic
Gas production growth is expected to be larg- metres) per day, down from 29.0 mmcf (821,252
est in the Haynesville, followed by Appalachia, cubic metres) per day in May.™

PROJECTS & COMPANIES

ConocoPhillips sues Alaska to prevent

well data being made public

ALASKA US-BASED ConocoPhillips has filed a lawsuit The company named five wells in particu-
against the State of Alaska in a bid to prevent lar in its complaint – Stony Hill 1, Tinmiaq 7,
it from publicly releasing data associated with Tinmiaq 8, Tinmiaq 9 and West Willow 1. It
some of its wells on the North Slope. had asked the Alaska Department of Natural
Under state law, data associated with wells Resources (DNR) to extend the state’s confiden-
is required to be made public after two years, tiality period for the wells, but the department
with few exceptions. However, ConocoPhillips denied the request.
is arguing that the wells are subject to federal ConocoPhillips is arguing that under federal
laws on confidentiality rather than state ones, law, the well data would stay confidential for a
given their location in the National Petroleum longer period covering the duration of the leases,
Reserve-Alaska (NPR-A). which can also be renewed.
According to ConocoPhillips’ complaint, The development represents a further set-
which was filed in US District Court in Anchor- back in Alaska for ConocoPhillips as it awaits
age on May 13, the Alaska Oil and Gas Con- a further environmental review for the Willow
servation Commission will publicly release the project – one of the developments that would
data relating to the wells unless it is stopped from be affected by the release of the company’s well
doing so by a court decision. The company said data.
that the data includes trade secrets and other Separately, ConocoPhillips also recently
proprietary information and that after spending experienced a natural gas leak at its Alpine field
tens of millions of dollars to acquire the leases in in the state, which resulted in a temporary cut
question, it could lose its competitive advantage in production from the field and which is now
if the data is released. being investigated by the state.™

Week 20 19•May•2022 www. NEWSBASE .com P11