Duc Duc Goose

Bloomberg: End Is Near for ‘Frack Holiday’ While Permian Readies 2019 Boom

But with at least three major pipeline projects scheduled to come online next year, producers are now seeing the problem as a mere footnote in the basin’s ongoing story of surging production growth. Pioneer Natural Resources Co. has enough pipe space to transport all its oil out of the basin through 2020 while Diamondback Energy Inc. has substantial capacity coming on new pipelines next year, the companies said Wednesday.

This year, the number of wells drilled but waiting to be fracked has increased 50 percent to 3,722, indicating a new wave of production is set to be unleashed once the pipes are ready, spending budgets are approved and frack crews are available.

TPL reports being party to 303 DUCs.  Could it be true that they have partial royalty rights on 8% of all the wells in the Permian?



One thought on “Duc Duc Goose

  1. I wonder what the tradeoff is for TPL’s royalties between the price of oil and the volume of barrels being produced. The stock price recently seems to fluctuate (like traditional O&G companies) in correlation with increases or decreases in price of crude oil, but revenues will likely be more than offset if production of barrels increases in the Permian as a result of the increase in wells waiting to be tapped (and, hopefully, the easing of the well-documented bottlenecks).

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