Cline Shale Exploration Activity – July 25th, 2014

Drilling RigExploration activity in the Cline shale region has continued to increase over the last quarter as an additional 9 rigs have commenced drilling.  The more productive horizontal rigs have actually increased in number by 11 during that same period as some of the lower powered, exploratory vertical rigs have been displaced in the maturing play.

Some of the counties with the most significant pickup in drilling were predictably the known hotspots of the Cline in Glasscock and Martin.  However, Reagan county on the South flank of the play added 8 more horizontal rigs as well.  About half of the new horizontal rigs are targeting [Read more...]

Alliance Discusses Housing Needs and Projects in the Cline

Rig and FlagOur friends at the Cline Shale Alliance held their quarterly luncheon on July 14, 2014 in Colorado City and heard from representatives of local companies and economic development organizations on various issues facing the Cline Shale area and new infrastructure projects.  In addition, we at the Cline Shale Site provided an update on regional production, drilling trends and stocks that became our July 2014 Newsletter.

Per the Colorado City Record, housing (or the lack thereof) was a notable topic of discussion at the luncheon.  Jim Clements of Oncor and the Big Spring Chamber of Commerce reported on the significant increase in housing activity that has left Oncor running eight to ten weeks behind schedule on orders.  Greg Wortham of the Alliance also noted that companies interested in the area have faced issues due to a lack of housing, adding “the places that get the housing will get the companies.”

In addition, the attendees heard reports on the development of new projects in the area, including a new power plant and an expanded logistics center. [Read more...]

July 2014 Newsletter Now Available

icon(129x129)We are happy to announce that our July 2014 Newsletter (click link to open PDF) is now available.  This edition takes the form of our presentation for the July 11, 2014 Cline Shale Alliance luncheon and inside you will find updates on new record rig counts and production, well trends and the rise of the Permian Basin to the premier oil play in the country.  We also take a look at the success of recent Cline and Permian IPOs and other stocks, including two up well over 100% in the past year.  Subscribers to the Cline Shale Site Newsletter are the first to receive this valuable resource, so be sure to sign-up today so you are in line for the next edition!

Permian Basin Leading in Horizontal Oil Rigs and Production

images (2)Two recent reports from the U.S. Energy Information Administration bear out continuing good news for the Cline Shale and the greater Permian Basin.  The EIA reports that the Permian Basin has seen an impressive leap in regional production even in the face of declining production from legacy wells, with a 60% increase since 2007 from 850,000 bbl/d in 2007 to 1,350,000 bbl/d in 2013, and is now “the nation’s most prolific oil producing area” exceeding even the Gulf of Mexico since March 2013.  This rapid increase has been made possible by the proliferation of horizontal drilling and an influx of rigs such that the number of horizontal, oil-directed rigs in the Permian now exceeds both the Eagle Ford and the Willston Basin. [Read more...]

Oil Markets In U.S. Increasingly Supplied By Permian Basin

In a recent update, the Energy Information Administration (EIA) revealed that six formations are responsible for the bulk of the Permian Basin’s increased oil output. Oil production grew from 850,000 to 1,350,000 in 2013. The Permian Basin renewal is a technology story, a Basin benefiting greatly from the switch to horizontal drilling from vertical wells. Having the ability to drill over one mile across has changed the game. It has allowed E&P firms to apply techniques and practices that were already in motion in the Bakken and Eagle Ford Shales. In an earlier article, I mentioned the Permian as an U.S. oil market proxy. In 2013, the EIA cites that it accounted for nearly 20% of U.S. oil production … Read more of Jennifer’s article here.

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