West Texas shale oil fields more productive than anticipated
Bloomberg/Dallas Morning News:
Pioneer Natural Resources Co. lifted its 2016 production growth target without increasing spending because wells drilled in a West Texas shale field are pumping more crude than expected.If the price continues to rise, these wells should become profitable again. It si another example of how the OPEC bet against the shale producers looks like a bad one.
The company said output will grow more than 12 percent this year, up from an earlier estimate of 10 percent.
Pioneer will hold its full-year capital budget at $2 billion — a 9.1 percent reduction from 2015 — and pay for it with cash flow from oil and gas sales, money it already has in the bank and money received from an earlier property auction, according to a statement the company released Monday.
Output from shale zones known collectively as the Spraberry/Wolfcamp probably will expand by 33 percent this year, more than offseting declines in other fields, Pioneer said.