Investments

The Permian Basin


The Permian continues to rule the U.S. oil production markets with the largest oil reserves in the U.S. In January 2013 average production per new Oil Rig in the Permian Basin was 122 barrels of oil per day. In January 2016, the average new production was 416 barrels per day. TSWR Development SWD Portfolio I, DST, intends to buy several working interests in salt water disposal facilities located in the Permian Basin Region of West Texas.

Location Summary


Even as oil prices have continued to soften as of late, production of oil and saltwater have steadily increased throughout the region. The Permian has had continued increases in daily production of oil since 2007. Although the rate of completions has slowed with the oil industry, production per well has increased with January 2016 new wells producing on average of 400 barrels of oil per day. This increase of daily production has been steady per www.EIA.GOV statistics.

In January 2013 average production per new oil rig in the Permian Basin was 122 barrels of oil per day. In January 2016, the average new production was 416 barrels per day. Per statistics from EIA (US Energy Information Administration), as Permian wells produce over time their production of water can increase to as much as 10 barrels of water for every barrel of oil a 10:1 ratio. Total Oil production for January 2016 is 2,034,477 barrels per day, creating a significant need to properly dispose of an average 20 million barrels of water per day in the region in January 2016.


Why is the Permian so strong?


The Permian continues to rule the U.S. oil production markets for two very simple reasons. First, the Permian has the largest oil reserves in the U.S., and, secondly, the infrastructure and support systems are in place to make drilling and extraction simple and lower risk then it has been historically. Even though drilling rigs counts have dropped from 463 in January 2013 to 212 in January 2016, average production per well has increased 227%. The increases have resulted mainly from new horizontal wells that are being drilled under old producing vertical well fields. This new lower horizontal drilling strategy involves drilling mile long horizontal wells that produce upwards of 3,500 barrels a day. The new giant wells in existing locations with existing infrastructure have cause average per well production to increase.

In a slower market, this has caused some of the production in some areas slow and other areas to explode. The Permian Basin continues to be the most active and prolific region in the United States. Despite the decline in rig counts nationally, the ratio of rigs currently drilling in the Permian Basin has remained strong. New extraction techniques are driving the growth of oil production and activity in the region. This oil production creates an expanding need for salt water disposal.

How to Invest


To access the offering materials for the programs that fit your investment goals,

click HERE to sign up and qualify for an online account to gain access

to our investment listings.