What is a ‘Shalennial’? These Two Are Hoping to Jumpstart Oil Production Here in the Permian Basin
Two new CEOs are looking to tap into a less-developed part of the Permian Basin called the Delaware Basin and ramp up oil production in 2023.
The outlook for U.S. shale oil production is looking good thanks to the new CEOs of Permian Resources Corporation which is planning to have a 10% increase in shale oil production in the upcoming year.
Will Hickey and James Walter are the two "shalennials" that just took over the reins of Permian Resources after a $7 billion merger between Colgate Energy and Centennial Resource Development Inc.
Colgate Energy is the company Walter and Hickey ran for seven years together as a private equity-backed company.
They are just one of the many companies operating in the Texas shale fields but they plan to boost the output amid more pressure from inflation-fighting politicians.
With their focus on the under-developed Delaware Basin, the western part of the Permian Basin, they feel they have the advantage in the country's largest oilfield.
Growth can be achieved they feel without adding any extra rigs which currently are in very short supply.
The main focus for them in the Delaware Basin is the area near the Texas-New Mexico border which is the country's lowest-cost production zone and has the most enormous quantity of top-quality well locations.
Most independent shale operators are not going to reveal their 2023 plans until next year but if they adopt the same plan as the two "shalennials," the U.S. could return to its pre-pandemic record production of 13 million barrels a day a lot faster than expected.