Insight
Sour gas could sour earnings for some Permian operators
Report summary
Hydrogen Sulfide (H2S) is proving to be an expensive headache for some operators in the Permian, and there may be more trouble to come. Two main mechanisms are primarily responsible for generating H2S in the Permian, allowing us to identify the regions and operators most likely to be impacted. Analyzing the treatment cost at varying concentrations suggests economic impacts can range from moderately troublesome to economically prohibitive. We believe holders of significantly H2S-prone acreage will need to either delay production or seek scale to spread the costs across a larger production base.
Table of contents
- Executive Summary
- Overview
- H 2 S formation and location
- Economic implications
- Operator-specific impact
- Conclusion
- Major costs associated with H 2 S
Tables and charts
This report includes 7 images and tables including:
- GOR vs H2S risk probabilities
- Fully burdened half-cycle economics
- H2S over 100 ppm reported via H9 form or through earnings
- Technical Appendix and Assumptions
What's included
This report contains:
Other reports you may be interested in
Insight
US upstream in brief: water watchers see Permian puzzles
The US week in brief highlights the need-to-know current events from US upstream. Stories are supplemented with proprietary WoodMac views.
$1,350
Insight
Industry readying for another clash over US EPA’s carbon emissions rule
New emissions regulations for the power sector headed for litigation over agency's authority, impact on reliability
$1,100
Insight
Middle East upstream M&A trends and watchlist
14 opportunities to look out for.
$1,350