The 2018 DUG Permian Basin Conference and Exhibition, May 21-23 at the Fort Worth Convention Center
The central theme among the presenters at the 2018 DUG Permian Basin conference and exhibition was never quit on the Permian. Between the morning and afternoon sessions, retired U.S. Navy SEAL Rob O’Neill, who led the mission that ultimately killed Osama bin Laden, urged attendees to follow his “never quit” mantra.
Mark Sooby, managing director of Deutsche Bank, made “the Basin” a benchmark for success, saying that if a company wants to be big in the industry, it has to be in the Permian. He noted that 80% of the top 20 E&P companies in the U.S. have either pure-play or significant Permian assets.
Todd Abbott, vice president of resource plays south for Marathon Oil Corp., ticked off the reasons his company likes the Permian Basin: high-quality rock, the ability to scale and high potential.
Clay Gaspar of WPX Energy Inc. delivers the Opening Keynote at DUG Permian Basin on May 22, 2018
Clay Gaspar, president and chief operating officer of WPX Energy Inc., agreed. He told attendees during his Opening Keynote that WPX planted its flag in the Delaware Basin because it has stacked pay, large inventory and great attributes that deliver quality wells.
Anadarko Petroleum Corp. is taking an aggressive approach to the Permian this year. The company will spend $1.1 billion in the Delaware Basin in 2018, said Chad McAllaster, vice president of operations in West Texas. Anadarko has 589,000 gross (240,000 net) acres and will average seven rigs and six completion crews.
This year’s conference also featured the conference’s first DUG Technology, where the hot topics were sand and water.
Taylor Robinson of PLG Consulting shares insights on sand logistics
Last-mile sand delivery faces a host of challenges, including silica exposure, truck traffic, noise, demurrage, well site footprint and throughput efficiency, according to Kevin Fisher, CEO of Denver-based PropX. “If you can’t get the oil out it’s going to affect sand growth,” warned Taylor Robinson, president of Chicago-based PLG Consulting, who spoke during the logistics panel.
The “water midstream segment” is growing rapidly to encompass sourced, produced and recycled water. “We are in the advent of the water midstream era,” declared J. Michael Anderson, senior vice president and chief financial officer of Layne Water Midstream.
Jim Summers, CEO of H2O Midstream LLC, emphasized the “tremendous opportunity [and need] for infrastructure around water” but asked a big question: Who’s going to pay for and build it? His answer was that producers, affiliates and third-party companies who need water the most are the most likely candidates.
H20 Midstream LLC's Jim Summers discusses water infrastructure in the Permian Basin