Skip navigation
Reports & Analysis Strategic Insights Research Subscriptions
Sign In / Create Account Cart
Sign In / Create Account Cart
  • Reports & Analysis
  • Strategic Insights
  • Research Subscriptions

Resources

  • Analyst Buzz
  • Press Releases
  • Blog
  • Resources & Downloads

The Freedonia Group

  • Contact
  • About
  • Our Staff
  • Help Center
  • Career Opportunities
Freedonia Market Research Freedonia Group Texas Oil & Gas Drilling Outlook Including Permian Basin and Eagle Ford

Texas Oil & Gas Drilling Outlook Including Permian Basin and Eagle Ford

Industry Reports, United States

Report Overview

Infrastructure Update: Two New Oil Refineries Planned in Texas

Oil Drilling

Earlier this spring, MMEX Resources and Raven Petroleum, a subsidiary of Raven Resources Group, announced plans to construct two new oil refineries in Texas. The refineries are planned for the Permian Basin and Eagle Ford Shale regions, respectively. The MMEX facility is expected to have 50,000 BOPD capacity, while the Raven refinery is expected to have a capacity of 55,000 BOPD. This announcement is significant, given the infrequent construction of refineries, especially ones with large capacities. While large capacities are generally thought of as 100,000 to 200,000 or more BOPD, these new refineries will be largest in approximately 40 years in the United States.

 

Table of Contents

    • $323.56

    • $1,984.80

      • $323.44

      • $323.44

      • $323.44

      • $323.44

      • $323.44

      • $1,166.50

        • $323.44

        • $323.44

        • $323.44

        • $323.44

        • $323.44

        • $323.44

      • $323.44

    • $1,897.74

      • $323.44

      • $323.44

      • $323.44

      • $323.44

      • $323.44

      • $323.44

      • $333.39

      • $323.44

      • $323.44

      • $323.44

      • $323.44

    • $1,787.56

      • $323.44

      • $323.44

      • $323.44

      • $323.44

      • $323.44

      • $323.44

      • $323.44

      • $323.44

      • $323.44

      • $323.44

      • $323.44

    • $1,623.93

      • $323.44

      • $323.44

      • $323.44

      • $323.44

      • $323.44

      • $323.44

      • $323.44

      • $323.44

      • $323.44

      • $323.44

    • $1,366.79

      • $323.44

        • $323.44

        • $323.44

        • $323.44

      • $323.44

      • $323.44

      • $323.44

      • $323.44

      • $357.59

      • $323.44

      • $325.97

        • $323.44

        • $323.44

Key Findings in the Texas Oil & Gas Drilling Outlook Study:

Permian Basin Leads Drilling Trends in Texas

While Texas currently occupies the largest share of drilling rigs and is drilling the most wells in the US, the Permian Basin, the most promising play in Texas, is driving activity in the state. The Permian Basin, identified by the USGS in 2016 as containing the largest contiguous recoverable volume of resources in US history, is valued for its unique geology. The region possesses a stratigraphy that has multiple stacked layers of proven resources. As a result, operators have flocked to the play, investing nearly $30 billion dollars in leases since June of 2016. The Permian Basin has the best drilling economics in the country and the drilling statistics are a reflection of that profitability.

Technological Advances in Unconventional Drilling Lower Breakeven Costs

Since the rise in popularity of unconventional drilling techniques, specifically hydraulic fracturing of horizontal well bores to retrieve resources from low permeability rock, the technology has continually improved. As of today, hydraulic fracturing is being performed on longer lateral lengths with high proppant densities, tighter frac clusters, and more frac stages. Additionally, drilling speeds are faster, multi-well pads are increasing, and multi-lateral wells are more common. All of these advances increase well profitability, either decreasing overhead costs on a per well basis or increasing the IP rate and EUR of a well. The lower the overhead costs equals a lower breakeven cost, and the more money that can be potentially made off a well translates to better overall drilling economics. Wells can be drilled with lower and lower benchmark oil prices.

Drilling Services Costs are Deflated Due to Lowered Drilling Activity

Following the collapse in benchmark oil prices in 2014, companies providing drilling services were forced to decrease prices to compete in a bear market. Drilling activity around the country slowed because the breakeven costs associated with drilling most wells become unattainable. Subsequently, drilling services were and are being delivered to operators at discounted rates to maintain their business amongst their competitors. While some of the cost savings currently found in drilling wells across the country is a result of technology, an equal contributor is the currently lower drilling services costs.

Outside of the Major Plays, Horizontal Drilling is Decreasing

Outside of major plays like the Permian Basin, a majority of wells drilled are more traditional in composition. Where operators are unable to meet breakeven costs as result of unique geology, ample infrastructure, or high IP rates, wells are being drilled vertically in conventional plays. Since unconventional drilling techniques come with higher costs for drilling and completion, drillers are opting to drill vertical wells in proven conventional plays that meet the bottom line.

Study Coverage

This study presents historical data (2015 and 2016) and forecasts (2017 and 2018) by play (Permian Basin, Eagle Ford Shale, Barnett Shale, and Haynesville Shale) in wells drilled, footage, and active rigs. Historical data is presented for drilling permits. Additionally, data is analyzed by well trajectory, resource, and sub-basin, where applicable. The study also evaluates drilling rates, drilling costs, land acquisitions, and infrastructure.

Purchase Options

Access Options

Membership

Complementary Access to Report Including:

  • consultative access to our analyst
  • unlimited downloads to reports
  • global market research in 9 languages
  • customized PPT presentations
  • passwords for your teams available
  • and more...
Become a Member
Purchase This Report

Select your license:

  • $2,500.00
  • $4,000.00
  • $5,100.00
  • — —
    Section prices in Table of Contents

Free Sample Report

A free sample report is available.

Questions & Assistance

Email us

Share This Report

Copied to clipboard. Could not copy to clipboard.

Download a Free Sample Report Now

Sample Reports include examples of all the tables, charts, infographics and topics included in this study.
By submitting this sample request you consent to receiving marketing communications from us. See our privacy policy to learn how to unsubscribe.

Use Licenses

The Single User License (SUL) authorizes a single individual to use the electronic study acquired. Agreement to the SUL is required in order to purchase the study. If you require more than one user a Departmental Site License or Global Site License should be purchased. 

The Departmental Site License (DSL) authorizes up to five users to share the study acquired. Agreement to the DSL is required in order to purchase the study. If your organization requires more than five users, the Global Site License should be purchased.

The Global Site License (GSL) allows everyone in your organization to share the study intelligence. Agreement to the Global Site License terms is necessary in order to purchase it. 

;

Related Reports and Studies

  • Pigments: United States Report

    Focus Reports

    This report forecasts to 2029 US pigments demand and shipments in nominal US dollars at the manufacturer level.

    NEW! June 2025 32 pages
    Free sample available
  • Polyethylene: United States Report

    Focus Reports

    This report forecasts to 2029 US polyethylene resin demand and production in pounds and nominal US dollars at the manufacturer level, and polyethylene prices in US dollars.

    NEW! May 2025 41 pages
    Free sample available
  • Liquid-Applied Roof Coatings: United States

    Focus Reports

    This report forecasts to 2028 US liquid-applied roof coatings demand in squares.

    NEW! January 2025 32 pages
    Free sample available
  • US Liquid-Applied Roof Coatings

    Industry Reports

    US demand for liquid-applied roof coatings is forecast to increase 1.1% annually through 2028 to 11.91 million squares.

    NEW! January 2025 207 pages
    Free sample available
  • Polystyrene: United States

    Focus Reports

    This report forecasts to 2028 US polystyrene resin demand and shipments in pounds and demand in nominal US dollars at the producer level. Total demand in pounds is segmented by form in terms of: crystal (solid), rubber-modified, and expanded.

    NEW! November 2024 43 pages
    Free sample available
  • Global Agricultural Equipment

    Industry Reports

    This study analyzes global supply of and demand for agricultural equipment by major world region. Historical data (2013, 2018, and 2023) and forecasts for 2028 and 2033 are provided for production, demand, and net exports of agricultural equipment in current US dollars at the manufacturers’ level.

    September 2024 488 pages
    Free sample available
  • Home & Garden Pesticides: United States

    Focus Reports

    This report forecasts to 2028 US home and garden pesticide demand in nominal US dollars at the manufacturer level.

    July 2024 37 pages
    Free sample available
  • US Home & Garden Pesticides

    Industry Reports

    This report covers the US market for home and garden pesticides, which includes pesticides used in residential settings by nonprofessional pesticide applicators. Data is presented for 2013, 2018, 2023, 2028, and 2033. Annual data for 2020 to 2027 is also presented.

    July 2024 211 pages
    Free sample available
  • Corrosion Inhibitors: United States

    Focus Reports

    This report forecasts to 2028 US corrosion inhibitor demand in pounds

    July 2024 35 pages
    Free sample available
  • Global Silicone Fluids

    Industry Reports

    Historical data for Global Silicone Fluids are provided for 2013, 2018, and 2023 with forecasts for 2028 and 2033.

    May 2024 50 pages
    Free sample available
View More

Have unique research needs?

Freedonia Strategic Insights listens intently to your needs and objectives. Then we work diligently to define a service offering to meet them.
Learn About Our Custom Research Services

Stay informed with Freedonia

Receive periodic updates about new market research in areas relevant to your business. Have the convenience of Freedonia research at your fingertips when you need it.
The Freedonia Group needs the contact information you provide to us to contact you about our products and services. You may unsubscribe from these communications at any time. For information on how to unsubscribe, as well as our privacy practices and commitment to protecting your privacy, please review our Privacy Policy.
  • Contact
  • About
  • Help Center
  • Career Opportunities
  • Press Contact
  • User Agreement
  • Privacy Policy
  • Site Map

Additional Resources

  • Market Size Resources
  • Lawn & Garden Market Research
  • Roofing Market Research
  • Pet Products Market Research
  • Countertops Market Research
  • Power Tools Market Research
  • Publishing for the PreK-12 Market Research
  • Insulation Market Resaerch
  • Cabinets Market Research
  • Flooring Market Research
  • Pet Supplements Market Research
  • Agricultural Equipment Market Research
  • Open Access Publishing Market Research
  • Silicones Market Research
  • For Legal Inquiries, contact Cohen & Cohen
Copyright © 2025 The Freedonia Group, Inc. All rights reserved.