West Texas inter-state production pipeline flows have recently surged to new highs for the year on November 7, 2023.
Production as measured by the inter-state production pipeline flows in West Texas jumped by 0.6 Bcf/d from November 6, 2023, to November 7, 2023. This represents almost exactly the amount of the Permian Highway pipeline expansion of 0.55 Bcf/d. There are intra-state production pipeline flows that aren’t visible as pipelines do not report those on their electronic bulletin boards (EBBs) and Permian Highway is one of those intra-state pipelines. However, the West Texas production pipeline flow data tries to take that into account by grossing up visible inter-state pipeline flows. The Permian Highway expansion is scheduled to come online in December 2023 according to Kinder Morgan’s 3rd quarter 2023 earnings report. However, it’s possible that the pipeline expansion has come online early for commissioning volumes. Stay tuned for an update on this latest development in West Texas.
Haynesville Louisiana Frac Crews Surging
Frac crews in the Haynesville Louisiana basin have been surging as of late and just in time for the winter season. Frac crew data is provided by Hyperion.
Frac crews in Haynesville Louisiana have surged to their highest level since June-2023 and this should lead to higher production in the region over the next 2 months, barring any wellhead freeze-offs.
Trimulfracing
Yes, trimulfracing is a funny word to say the least, but that is going to be the new trend going forward in the Permian according to Ovintiv’s latest 3rd quarter earnings presentation. Simulfracing is when 2 wells are completed at the same time. Increased usage of simulfracing has been a major factor for the double-digit year-on-year efficiency gains in Permian production. Trimulfracing, or completing 3 wells at the same time, is going to be the new trend in the Permian basin to further expand the efficiency gains for oil and gas producers. The slide below is from Ovintiv’s 3rd quarter 2023 earnings presentation.
Ovintiv says that the savings cost per well from trimulfracing was about $125,000 as compared to wells that were completed using simulfracing. Also, the completions speed per day increased by at least 10% as compared to wells using simulfracing. Ovintiv plans on trimulfracing 50% of their new wells in 2024 compared to 25% of their wells that were completed in 2023 using trimulfracing. Trimulfracing is expected to be a significant gain for producer efficiency and look for this new completion technique to be utilized in the other major producing basins in the Lower 48.
