Permian Newsletter, Month 2001
Executive Summary
Total production during the second quarter of 2000 from the Permian Basin was 4,822
MMcf/d, which was an decrease of 53 MMcf/d from the first quarter 2000. Production during the second quarter of 2000 was
also 73 MMcf/d below the 1999 annual average, which was 4,895 MMcf/d. Production from this basin continues to exhibit a
flat to slow decline that has been underway in the Permian Basin since 1993. It would appear that the decline in drilling that
started in 1998 accelerated the decline rate from this basin. Since 1993, production is down almost 575 MMcf/d
or about 10% during the six and a half-year period. During
1998, this basin contributed roughly 10% of the total national gas produced.
Background
The Permian Basin occupies approximately 70-80 thousand square miles and includes 51
counties in west Texas and four counties in southeastern New Mexico. The basin is bounded structurally on the east by
the Bend arch, on the north by the Amarillo-Ouachita uplift, on the west by the Sacramento
Mountains and on the south by the Marathon thrust belt.
Sedimentary rocks within the basin are as much as 30,000 feet thick in the deepest
areas. Nearly all the rocks are of Paleozoic
era within a thin veneer of Mesozoic strata at the surface.
Carbonates, both limestone and dolomite, are the dominant lithology. The basin currently produces just over 5
Bcf/d, with 30% of the volume from the New Mexico side
and 70% from the Texas side. The Southeast
New Mexico area is comprised of almost 14,000 oil wells and 4,400 gas wells and is the
second largest contributor to volumes in the Permian Basin.
Although 76% of the producing wells in this area are oil wells, only about 38% of
the gas production comes from these wells. Four
counties contribute to the gas production from this area. Eddy is the largest
gas-producing county in Southeast New Mexico producing 54% of the region’s total
volumes. Lea is the next largest county
contributing 42% of the region’s production. The
other two counties, Chaves and Roosevelt together only contribute the remaining 4%. |
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