American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 121

In South Hobbs, Occidental began the
first phase of CO2 injection in the MOC
in September 2015 and spent more than
$250 million on the expansion, Bergersen
says. Production has nearly tripled since
the beginning of injection. This summer,
Occidental began a ROZ development in
the South Hobbs Unit, and the second
MOC phase at South Hobbs is scheduled
to get under way in early 2017, with the
first CO2 injection targeted for the fourth
quarter of 2018, Bergersen adds.
Extra gas-handling capacity has driven
down development costs, allowing for
more reinvestment in Occidental's West
Seminole Field. Production has increased
by a factor of four since the first injection
in the MOC CO2 project. "In addition,

we initiated ROZ development in West
Seminole this past summer," she says.
Altogether, as of early fall, Occidental
had completed 74 well deepenings and
recompletions along with 28 news wells
in ROZ development.
"In Permian EOR, we anticipate an
additional 30 deepenings and recompletions, and 22 new wells by the end of
this year," Bergersen concludes. "In the
second half of this year, we will increase
our Permian operated rig count to seven
or eight for EOR and our unconventional
resources. With these rigs and additional
investment in our Permian Basin operations, we expect production growth in
2017."
❒

Permian Companies Investing
In Midstream Infrastructure
By Sandy Fielden
AUSTIN, TX.-After doubling from 1
million to 2 million barrels a day between
2011 and 2015, crude oil production in
the West Texas Permian Basin has leveled
in the face of lower oil prices. The slowdown in output has given take-away infrastructure a chance to catch up, and the
addition of more than 700,000 barrels a
day of new mainline capacity has transformed congestion into overcapacity on
long-haul pipelines out of the region.
While drilling has slowed considerably,
this summer's uptick in rigs deployed reflects optimism among producers that
the Permian offers the best rates of return.
Midstream operators continue to build
transportation networks to help secure
current and future market share. These
new projects confirm that active investment
in midstream infrastructure continues in
the Permian Basin.
The focus of development has moved
away from big, mainline pipes to get
crude to refining markets because the
slowdown in production has left that
sector overbuilt. Instead, midstream companies are connecting the first mile by
building gathering systems and protecting
their market shares by tying in producers
at the wellhead. The improved infrastructure will save transportation costs for
hard hit producers as new rigs roll into
Permian hot spots in response to the
partial crude price recovery since February
of this year.
From June through August, more than
40 mothballed drilling rigs rolled out in
the prolific Permian Basin as producers

responded to a modest recovery in prices
from a low of $27 a barrel in February to
the $50 a barrel range. Figure 1 shows
the history of drilling rigs deployed in
the Permian (blue line, right axis) increasing from 330 in January 2011 to a
peak of 565 in November 2014, and then
falling off a cliff to a low of 137 rigs in
May 2016.
Over the same period, Permian crude
production (red line, left axis) experienced
rapid growth from 1 MMbbl/d to 2 MMbbl/d, peaking in March 2016. Since then,
production has hovered around 2 MMbbl/d,
and is not expected to increase significantly
during the next year as drilling will at
best replace declines from existing wells.
We believe a return to crude prices
above $60 a barrel by 2018 will prompt
a stronger recovery in drilling activity
and a return to production growth in the
Permian.
Midstream Infrastructure
The slowdown in production has given
midstream infrastructure a chance to catch
up with higher output. Before prices
began to tumble in the fall of 2014, Permian crude output exceeded regional
take-away capacity, leading to pipeline
congestion getting oil out of the basin to
Midwest and Gulf Coast refining markets.
During 2015, that congestion was relieved
by new outbound capacity coming on
line between regional crude gathering
hubs and refining markets. Significant
pipeline projects in this time frame included:
* The Magellan Midstream Partners
and Plains All American joint venture
OCTOBER PBIOS 2016 121



Table of Contents for the Digital Edition of American Oil and Gas Reporter - PBIOS 2016 Official Program Guide

Table Of Contents
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - Cover1
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - Cover2
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 3
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - Table Of Contents
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 5
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 6
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 7
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 8
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 9
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 10
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 11
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 12
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 13
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 14
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 15
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 16
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 17
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 18
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 18A
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 18B
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 18C
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 18F
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 19
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 20
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 21
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 22
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 23
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 24
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 25
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 26
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 27
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 28
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 29
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 30
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 31
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 32
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 33
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 34
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 35
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 36
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 37
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 38
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 39
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 40
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 41
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 42
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 43
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 44
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 45
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 46
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 47
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 48
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 49
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 50
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 51
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 52
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 53
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 54
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 55
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 56
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 57
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 58
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 59
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 60
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 61
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 62
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 63
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 64
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 65
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 66
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 67
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 68
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 69
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 70
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 71
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 72
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 73
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 74
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 75
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 76
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 77
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 78
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 79
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 80
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 81
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 82
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 83
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 84
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 85
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 86
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 87
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 88
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 89
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 90
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 91
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 92
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 93
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 94
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 95
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 96
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 97
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 98
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 99
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 100
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 101
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 102
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 103
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 104
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 105
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 106
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 107
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 108
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 109
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 110
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 111
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 112
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 113
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 114
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 115
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 116
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 117
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 118
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 119
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 120
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 121
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 122
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 123
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 124
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 125
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 126
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 127
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 128
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 129
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 130
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 131
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 132
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 133
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 134
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 135
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 136
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 137
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 138
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - Cover3
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - Cover4
http://www.nxtbook.com/nxtbooks/aogr/201910
http://www.nxtbook.com/nxtbooks/aogr/201909
http://www.nxtbook.com/nxtbooks/aogr/201908
http://www.nxtbook.com/nxtbooks/aogr/201907
http://www.nxtbook.com/nxtbooks/aogr/201906
http://www.nxtbook.com/nxtbooks/aogr/201905
http://www.nxtbook.com/nxtbooks/aogr/201904
http://www.nxtbook.com/nxtbooks/aogr/201903
http://www.nxtbook.com/nxtbooks/aogr/201902
http://www.nxtbook.com/nxtbooks/aogr/201901
http://www.nxtbook.com/nxtbooks/aogr/201812
http://www.nxtbook.com/nxtbooks/aogr/201811
http://www.nxtbook.com/nxtbooks/aogr/201810
http://www.nxtbook.com/nxtbooks/aogr/pbios_201810
http://www.nxtbook.com/nxtbooks/aogr/201809
http://www.nxtbook.com/nxtbooks/aogr/201808
http://www.nxtbook.com/nxtbooks/aogr/201807
http://www.nxtbook.com/nxtbooks/aogr/201806
http://www.nxtbook.com/nxtbooks/aogr/201805
http://www.nxtbook.com/nxtbooks/aogr/201804
http://www.nxtbook.com/nxtbooks/aogr/201803
http://www.nxtbook.com/nxtbooks/aogr/201802
http://www.nxtbook.com/nxtbooks/aogr/201801
http://www.nxtbook.com/nxtbooks/aogr/201712
http://www.nxtbook.com/nxtbooks/aogr/201711
http://www.nxtbook.com/nxtbooks/aogr/201710
http://www.nxtbook.com/nxtbooks/aogr/201709
http://www.nxtbook.com/nxtbooks/aogr/201708
http://www.nxtbook.com/nxtbooks/aogr/201707
http://www.nxtbook.com/nxtbooks/aogr/201706
http://www.nxtbook.com/nxtbooks/aogr/201705
http://www.nxtbook.com/nxtbooks/aogr/201704
http://www.nxtbook.com/nxtbooks/aogr/201703
http://www.nxtbook.com/nxtbooks/aogr/201702
http://www.nxtbook.com/nxtbooks/aogr/201701
http://www.nxtbook.com/nxtbooks/aogr/201612
http://www.nxtbook.com/nxtbooks/aogr/201611
http://www.nxtbook.com/nxtbooks/aogr/201610
http://www.nxtbook.com/nxtbooks/aogr/pbios2016_programguide
http://www.nxtbook.com/nxtbooks/aogr/201609
http://www.nxtbook.com/nxtbooks/aogr/201608
http://www.nxtbook.com/nxtbooks/aogr/201607
http://www.nxtbook.com/nxtbooks/aogr/201606
http://www.nxtbook.com/nxtbooks/aogr/201605
http://www.nxtbook.com/nxtbooks/aogr/201604
http://www.nxtbook.com/nxtbooks/aogr/201603
http://www.nxtbook.com/nxtbooks/aogr/201602
http://www.nxtbook.com/nxtbooks/aogr/201601
http://www.nxtbook.com/nxtbooks/aogr/201512
http://www.nxtbook.com/nxtbooks/aogr/201511
http://www.nxtbook.com/nxtbooks/aogr/201510
http://www.nxtbook.com/nxtbooks/aogr/201509
http://www.nxtbook.com/nxtbooks/aogr/201508
http://www.nxtbook.com/nxtbooks/aogr/201507
http://www.nxtbook.com/nxtbooks/aogr/201506
http://www.nxtbook.com/nxtbooks/aogr/201505
http://www.nxtbook.com/nxtbooks/aogr/201504
http://www.nxtbook.com/nxtbooks/aogr/201503
http://www.nxtbook.com/nxtbooks/aogr/201502
http://www.nxtbook.com/nxtbooks/aogr/201501
http://www.nxtbook.com/nxtbooks/aogr/201412
http://www.nxtbook.com/nxtbooks/aogr/201411
http://www.nxtbook.com/nxtbooks/aogr/201410
http://www.nxtbook.com/nxtbooks/aogr/201409
http://www.nxtbook.com/nxtbooks/aogr/pbios2014_programguide
http://www.nxtbook.com/nxtbooks/aogr/201408
http://www.nxtbook.com/nxtbooks/aogr/201407
http://www.nxtbook.com/nxtbooks/aogr/201406
http://www.nxtbook.com/nxtbooks/aogr/201405
http://www.nxtbook.com/nxtbooks/aogr/201404
http://www.nxtbook.com/nxtbooks/aogr/201403
http://www.nxtbook.com/nxtbooks/aogr/201402
http://www.nxtbook.com/nxtbooks/aogr/201401
http://www.nxtbook.com/nxtbooks/aogr/201312
http://www.nxtbook.com/nxtbooks/aogr/201311
http://www.nxtbook.com/nxtbooks/aogr/201310
http://www.nxtbook.com/nxtbooks/aogr/201309
http://www.nxtbook.com/nxtbooks/aogr/201308
http://www.nxtbook.com/nxtbooks/aogr/201307
http://www.nxtbook.com/nxtbooks/aogr/201306
http://www.nxtbook.com/nxtbooks/aogr/201305
http://www.nxtbook.com/nxtbooks/aogr/201304
http://www.nxtbook.com/nxtbooks/aogr/201303
http://www.nxtbook.com/nxtbooks/aogr/201302
http://www.nxtbook.com/nxtbooks/aogr/201301
http://www.nxtbook.com/nxtbooks/aogr/201212
http://www.nxtbook.com/nxtbooks/aogr/201211
http://www.nxtbook.com/nxtbooks/aogr/201210
http://www.nxtbook.com/nxtbooks/aogr/201209
http://www.nxtbook.com/nxtbooks/aogr/2012_pbios
http://www.nxtbook.com/nxtbooks/aogr/201208
http://www.nxtbook.com/nxtbooks/aogr/201207
http://www.nxtbook.com/nxtbooks/aogr/201206
http://www.nxtbook.com/nxtbooks/aogr/201205
http://www.nxtbook.com/nxtbooks/aogr/201204
http://www.nxtbook.com/nxtbooks/aogr/201203
http://www.nxtbook.com/nxtbooks/aogr/201202
http://www.nxtbook.com/nxtbooks/aogr/201201
http://www.nxtbook.com/nxtbooks/demo/aogr_clone
http://www.nxtbook.com/nxtbooks/aogr/201112
http://www.nxtbookMEDIA.com