The most important gas basin in the Lower 48 is…. the Permian? With offtake constraining output in Appalachia, the Permian and the Haynesville have been the gas growth engines since COVID, combined now responsible for over 35 bcf/d of gas production from horizontals – more than Appalachia. Of course, because the Permian is an oil play, its gas production is not driven by gas prices (by and large). As they like to say, the breakeven gas price in the Permian is $0 — that’s tough to compete with. Thanks to slower declines for the gas stream, the Permian product mix is gradually shifting to more gas. And while part of me wants to just extend the arrow in this chart to see where the Permian would break 35 bcf/d, that is also dependent on the buildout of gas offtake in the basin (last time we modeled this, we saw 40% growth of gas in the Permian through the mid-2030s, with no constraints). By the way, these numbers are absolutely bonkers. In total now, Appalachia has produced 100 TCF, and the Permian and Haynesville are both clocking in around 40 TCF each – all that just from the horizontal plays. Pretty staggering, world class, economy-transforming numbers there. #oilgas #permian #marcellus #naturalgas
Meisong Yan, PE
10mo
The small print in the slide states that "horizontal wells only". Just curious that how it's compared with the plot from the all the wells (H+V+D)? 🤔 🤔 🤔
Alan Murphy
10mo
the only constraints on permain gas production - is getting gas to henry hub or the gulf coast as long as pipelines capacity is there the gas will flow.
Guillermo Turrent
10mo
Great write up and info. All comes down to take away capacity (pipes) and who will anchor it. The anchor is LnG exports and those depend mainly on Europe and its ability to conserve or substitute LnG with something else. Shall see if there is something else.
Odumeh Omenamkpo
9mo
I am a geologist BSC Holder from Nigeria. Since five years, I graduated, I have no job. Please I am getting tired staying at home doing nothing. I am looking for employment in any of the oil companies either in Nigeria or overseas. God Almighty bless you as I am employed. My WhatsApp number is+2349024468822 Omenamkpo LeGuru Odumeh
Jake Lowney CSP
10mo
Still must be mixed with foreign oil. 🫡 Now show the North Slope, Kern River and Williston Basin…
William A. Baehrle
10mo
Thanks for posting
Rick Carlisle
10mo
You're welcome
Pablo Conte
10mo
The Ukranian-Russian conflict explains that? Where is going that gas?
Founder @ CounterPoint | Structured Commodity Investments
10moAnd they did it for so much less than everyone else…since we’re starting the year I’ll take the glass half full view…tons of upside in this unconventional gas basin….