Permian Basin Production Decline Rate
Posted: Wed Dec 18, 2019 9:43 am
"The production volumes from existing wells fell by 34 percent in 2018 and that base decline rate is now hitting 40 percent, according to the report." - IHS Markit predicts U.S. oil production will flatten out in 2021 after another year of more modest growth in 2020.
Read more: https://www.oilandgas360.com/permian-dr ... roduction/
“Base decline is the volume that oil and gas producers need to add from new wells just to stay where they are — it is the speed of the treadmill,” said Raoul LeBlanc, vice president of unconventional oil and gas at IHS Markit. “Because of the large increases of recent years, the base decline production rate for the Permian Basin has increased dramatically, and we expect those declines to continue to accelerate. As a result, it is going to be challenging, especially for some companies with cash constraints, just to keep production flat.”
In 2019, Permian production started the year at 3.8 million barrels per day, a million barrels higher than 2018. IHS Markit expects that base production will decline by approximately 1.5 million barrels of oil per day by the end of this year – a staggering 40 percent base decline rate.
Read more: https://www.oilandgas360.com/permian-dr ... roduction/
“Base decline is the volume that oil and gas producers need to add from new wells just to stay where they are — it is the speed of the treadmill,” said Raoul LeBlanc, vice president of unconventional oil and gas at IHS Markit. “Because of the large increases of recent years, the base decline production rate for the Permian Basin has increased dramatically, and we expect those declines to continue to accelerate. As a result, it is going to be challenging, especially for some companies with cash constraints, just to keep production flat.”
In 2019, Permian production started the year at 3.8 million barrels per day, a million barrels higher than 2018. IHS Markit expects that base production will decline by approximately 1.5 million barrels of oil per day by the end of this year – a staggering 40 percent base decline rate.