Chevron down to 5 rigs in the Permian

Published: May. 6, 2020 at 12:06 PM CDT
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Chevron is currently running five rigs in the Permian basin, the company’s chairman and CEO, Mike Wirth, revealed in a recent Bloomberg television interview.

“We began the year with 17 rigs running in the Permian. We’re down to five right now,” Wirth said in the interview, which was published on May 1.

“Production tends to lag rig activity and so what we’re seeing is production actually reflects wells that came on in the last half of 2019 the first quarter of this year…so our production actually is a little disconnected from the rig decline,” Wirth added.

In its latest results statement, which was released on May 1, Chevron reported unconventional net oil-equivalent production of 580,000 barrels per day (bpd) in the Permian basin in the first quarter (1Q) of this year.