Oct. 30–Operators active in the Permian Basin are planning to keep activity levels steady, according to those participating in a panel discussion at the Permian Basin Petroleum Association’s 56th annual meeting Thursday at the Petroleum Club.
Parsley Energy is operating 16 horizontal rigs, 11 in the Midland Basin and five in the Delaware Basin, said Stephanie Reed, the company’s senior vice president, land and marketing. She said Parsley, which focuses on execution and return on its development projects, intends to maintain production levels through the end of the year.
David Pursell, senior vice president, planning, reserves and fundamentals with Apache Corp., said the company is undertaking a significant midstream infrastructure construction project in its Alpine High play in Reeves County, constructing a cryogenic processing plant to process natural gas liquids. When complete, he said it will be comprised of three 200 million cubic feet per day “trains” for a processing capacity of 600 Mmcfd. Apache has 500 contractors at work on the project, “and we plan to work them through next October,” Pursell said.
Travis Stice, chief executive officer of Diamondback Energy, told the gathering that when he was contemplating the company’s $9 billion acquisition of Energen Resources, he considered three things: “Execution, execution, execution.”
Reed, Pursell and Stice each indicated that the stability of their operations is allowing them time to focus on their personnel, as well as the communities where they work.
“We don’t produce one barrel of oil that a human doesn’t touch,” said Stice.
Agreed Pursell, who referred to Stice’s comments about execution and said, “You execute with your employees.”
To that end, Apache and Parsley are each in the process of completing expansions of their Midland offices. Apache is preparing to open its second building toward the end of the year, a building that will have amenities such as a cafeteria, fitness center and day care center. “Things we wanted to do for our employees,” Pursell said.
Parsley is constructing a second building at its Midland field office on County Road 120 that will contain similar amenities, said Reed.
“We also have a very big focus on community, with a focus on education,” she said.
The company’s employees work with students at Travis Elementary and they will be joining Travis students in planting 25 trees at Dunagan Park on Nov. 2 beginning at 9 a.m. In March, Parsley had partnered with Keep Midland Beautiful and Washington Elementary to plant trees in Washington Park.
Stice said he wants his company to help address issues affecting the Midland community, including housing. “We want people to bring their families here, and we want them to have a roof over their heads,” he said.
Agreed Reed, “You don’t just have oil and gas; you have education, health care.”
The success the companies have enjoyed comes with challenges. Reed said Parsley has grown its production from 10,000 barrels a day to 100,000 barrels a day. With growth like that, the company has had to consider things such as ensuring its production can be moved to market and how to diversify where its production grows, especially as pipeline bottlenecks in the Permian Basin have intensified.
“We’re looking at what will be the bottlenecks further down the road,” she said.
Reed also said the company has done about two dozen trades to consolidate acreage for its horizontal drilling projects.
Such cooperation among operators is important, according to Stice.
“Communication among operators is key, communication across all levels,” he said.
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