Advertising

ConocoPhillips optimizes Permian Basin oil development for 2024

ConocoPhillips forecasts stable activity in the Permian Basin for 2024, while anticipating occasional production increases thanks to new projects.

energynews
Le 7 May 2024

Please share:

On May 2, ConocoPhillips executives revealed the company’s plans for the Permian Basin in 2024, calling for continued activity in drilling and well completion crews. Nick Olds, Executive Vice President for operations in the lower 48 states, emphasized an approach focused on operational efficiency despite stable drilling and fracturing activity.

“We are maintaining stable activity with drilling rigs and fracking crews. As such, we could see a quarterly increase.”

Impact of new projects and technical improvements

In the second half of the year, ConocoPhillips plans to focus on the oil-richer Midland Basin, where clustered well development projects and horizontal well extensions of up to three miles are expected. These innovations could lead to quarterly variations in 2024 production levels, according to Olds.

Technological advances and cost reduction

Efforts to develop wells with two- to three-mile laterals are yielding significant cost improvements, with reductions of up to 40% when the lateral length is increased from one mile to three miles. These advances give ConocoPhillips a competitive edge and help optimize the profitability of extraction.

Transmission capacity and the global gas market

Regarding Permian natural gas, Bill Bullock, CFO, said that ConocoPhillips has diversified transportation capacity to the Gulf and West coasts, actively supporting takeaway capacity from the Permian Basin. The company is also involved in strengthening its exposure to liquefied natural gas (LNG), participating in expansion projects in Australia and Qatar, and securing regasification capacity in Europe.

By consolidating its development strategy and exploiting technological advances, ConocoPhillips is positioned to capitalize on growth opportunities in the Permian Basin while strengthening its commitment to the global gas market. Plans for 2024 reflect a focused approach that could well have a positive impact on the company’s production and profitability.

Advertising

Recently published in Oil

ADNOC faces challenges to launch Upper Zakum futures contract

ADNOC's Upper Zakum exports are falling, making it difficult to launch a futures contract for this medium-sulphur crude. Liquidity and market challenges emerge as OPEC+ plans a quota increase.

Nigeria: What impact will the Dangote refinery have on prices and production?

The Dangote refinery in Nigeria, expected to provide a solution to fuel shortages, is raising questions about its real impact on domestic prices and supply strategy.

Nigeria: What impact will the Dangote refinery have on prices and production?

The Dangote refinery in Nigeria, expected to provide a solution to fuel shortages, is raising questions about its real impact on domestic prices and supply strategy.

United States: moderate rise in crude oil inventories, below forecasts

U.S. crude oil inventories rose by 800,000 barrels, below expectations for a 1.05 million increase, suggesting significant implications for the oil market.

United States: moderate rise in crude oil inventories, below forecasts

U.S. crude oil inventories rose by 800,000 barrels, below expectations for a 1.05 million increase, suggesting significant implications for the oil market.

India-UAE agreement to increase crude oil storage capacity

India and the United Arab Emirates explore new opportunities to increase strategic crude oil storage and enter into a production concession agreement to strengthen their energy cooperation.

India-UAE agreement to increase crude oil storage capacity

India and the United Arab Emirates explore new opportunities to increase strategic crude oil storage and enter into a production concession agreement to strengthen their energy cooperation.

Libya: Crude oil exports resume from eastern ports

Libyan crude oil exports resume from eastern ports as political negotiations progress between rival governments, supported by UN-sponsored talks.

ExxonMobil withdraws from acquisition of Galp Energia’s Namibian oil block

ExxonMobil abandons its plan to buy 40% of the Mopane offshore field in Namibia from Galp Energia, leaving other companies in the running for this strategic stake.

ExxonMobil withdraws from acquisition of Galp Energia’s Namibian oil block

ExxonMobil abandons its plan to buy 40% of the Mopane offshore field in Namibia from Galp Energia, leaving other companies in the running for this strategic stake.

Gulf of Mexico: oil majors evacuate their teams in the face of Francine

Gulf of Mexico energy companies such as Chevron, ExxonMobil and Shell are evacuating staff and suspending some drilling operations in response to Tropical Storm Francine, anticipating major disruptions to oil and gas production.

Gulf of Mexico: oil majors evacuate their teams in the face of Francine

France: IGF recommends halting Sara’s overseas refining operations

An IGF report suggests discontinuing Sara's refining activity to reduce fuel costs in Guadeloupe, Martinique and French Guiana, sparking debate on the future of energy in these territories.

France: IGF recommends halting Sara’s overseas refining operations

An IGF report suggests discontinuing Sara's refining activity to reduce fuel costs in Guadeloupe, Martinique and French Guiana, sparking debate on the future of energy in these territories.

Growing gap between Brazilian gasoline prices and import prices

Gasoline prices in Brazil remain stable despite a widening gap with imports, posing challenges for the ethanol market and influencing the commercial strategies of fuel distributors.

United States: Marathon Petroleum faces spreading labor unrest in Detroit

The strike by workers at Marathon Petroleum's Detroit refinery is getting tougher. The Teamsters Union is considering extending the strike to other sites, given the stalemate in negotiations.

United States: Marathon Petroleum faces spreading labor unrest in Detroit

The strike by workers at Marathon Petroleum's Detroit refinery is getting tougher. The Teamsters Union is considering extending the strike to other sites, given the stalemate in negotiations.

Lukoil: Slovakia and Hungary step up imports despite sanctions

Following sanctions on Lukoil, Slovakia and Hungary are increasing their imports of Tatneft crude via the Druzhba pipeline, underlining the complexity of energy security in Central Europe.

Lukoil: Slovakia and Hungary step up imports despite sanctions

Following sanctions on Lukoil, Slovakia and Hungary are increasing their imports of Tatneft crude via the Druzhba pipeline, underlining the complexity of energy security in Central Europe.

Asian refining margins plunge in face of supply glut

Asian refiners are experiencing their lowest margins since 2020, due to oversupply and falling demand for diesel and gasoline.

Asian refining margins plunge in face of supply glut

Asian refiners are experiencing their lowest margins since 2020, due to oversupply and falling demand for diesel and gasoline.

Falling oil prices: OPEC+ struggles to reverse the trend

Brent crude oil prices hit their lowest level since March 2023. OPEC+ postpones production increases, but the market remains skeptical in the face of flagging demand.

Sovcomflot maintains its share of Russian non-G7 oil exports at 80%.

Despite Western sanctions, Sovcomflot retains a significant share of Russia's non-G7 crude oil exports, exceeding 80% in August. New U.S. sanctions increase pressure to reduce Russian revenues.

Sovcomflot maintains its share of Russian non-G7 oil exports at 80%.

Despite Western sanctions, Sovcomflot retains a significant share of Russia's non-G7 crude oil exports, exceeding 80% in August. New U.S. sanctions increase pressure to reduce Russian revenues.

OPEC+ Extends Production Cut to Stabilize Oil Prices

Under pressure from falling prices, OPEC+ decided to extend the production cut by 2.2 million barrels per day until December 2024 to maintain market balance.

OPEC+ Extends Production Cut to Stabilize Oil Prices

Under pressure from falling prices, OPEC+ decided to extend the production cut by 2.2 million barrels per day until December 2024 to maintain market balance.

Norway challenges climate injunction blocking three oil fields

Norway is requesting the lifting of injunctions on three oil fields, arguing that the economic impacts outweigh the environmental benefits claimed.

Norway challenges climate injunction blocking three oil fields

Norway is requesting the lifting of injunctions on three oil fields, arguing that the economic impacts outweigh the environmental benefits claimed.

Brent crude falls to a 9-month record low: Markets in a state of uncertainty

Brent crude prices fell sharply on expectations of a rapid resumption of Libyan exports and possible adjustments to OPEC+ production cuts.

Conflicts surrounding oil development in Ecuador’s Yasuni reserve

Indigenous communities in the Ecuadorian Amazon, including the Waorani, are contesting the impacts of oil extraction in the Yasuni reserve, raising questions about the country's resource management and economic strategies.

Conflicts surrounding oil development in Ecuador’s Yasuni reserve

Russian oil exports down on Asian demand

Exports of Russian petroleum products fell sharply in August, to a level not seen since the pandemic, due to weaker demand in Asia and a shift towards the domestic market.

Russian oil exports down on Asian demand

Exports of Russian petroleum products fell sharply in August, to a level not seen since the pandemic, due to weaker demand in Asia and a shift towards the domestic market.

Saipem signs two contracts with Saudi Aramco worth USD 1 billion

Saipem wins two offshore oil engineering, procurement, construction and installation (EPCI) contracts with Saudi Aramco, worth a total of around 1 billion USD, for the Marjan, Zuluf and Safaniyah fields in Saudi Arabia.

Saipem signs two contracts with Saudi Aramco worth USD 1 billion

Nigeria: Dangote Refinery redefines NNPC Ltd’s strategies

Dangote Oil Refinery begins gasoline production in Nigeria, introducing new logistical and financial challenges for NNPC Ltd, the sole buyer and exclusive distributor.

Kurdish production complicates Baghdad’s gas ambitions

Iraqi Kurdistan continues to increase its oil production despite restrictions from Baghdad, which is trying to comply with OPEC+ quotas and attract US gas investment to diversify its energy sources.

Kurdish production complicates Baghdad’s gas ambitions

Iraqi Kurdistan continues to increase its oil production despite restrictions from Baghdad, which is trying to comply with OPEC+ quotas and attract US gas investment to diversify its energy sources.

OPEC+: Production increases despite falling oil prices

OPEC+ is sticking to its strategy of increasing oil production from October onwards, despite downward pressure on Brent and WTI prices and expectations of market stabilization.

OPEC+: Production increases despite falling oil prices

OPEC+ is sticking to its strategy of increasing oil production from October onwards, despite downward pressure on Brent and WTI prices and expectations of market stabilization.

Namibia: ReconAfrica signs strategic agreement with BW Energy

ReconAfrica is moving ahead with exploration of the PEL 73 block in northeast Namibia, with a new agreement to sell a 20% interest to BW Energy for USD 22 million and a drilling program underway.

Namibia: ReconAfrica signs strategic agreement with BW Energy

ReconAfrica is moving ahead with exploration of the PEL 73 block in northeast Namibia, with a new agreement to sell a 20% interest to BW Energy for USD 22 million and a drilling program underway.