the
permian
basin

business overview
american energy powerhouse

The Permian Basin is one of the most prolific oil and natural gas geologic basins in the United States. It is an engine of America’s energy resurgence and has been delivering resources for our vehicles, manufacturing, power generation and homes for many decades.

Chevron and its legacy companies have been a fixture in the Permian, which is located in the southwestern United States, since the early 1920s. In 2011, Chevron produced its 5 billionth barrel from the Permian. Today we are among the largest producers of oil and natural gas in the basin, and with approximately 2 million net acres of resources, Chevron is the Permian Basin’s largest net acreage holder.

The basin spans West Texas and southeastern New Mexico. Enhanced oil recovery techniques—first water flooding and then carbon dioxide injection—have had major applications in the Permian. The basin holds the largest crude oil fields in the United States, including more than 20 of the nation’s top 100 oil fields.

The Permian is delivering transformational production growth as we apply advanced technologies and build drilling efficiencies to enable greater success in fueling America’s energy needs.

permian basin

The Permian Basin is approximately 250 miles wide and 300 miles long, across West Texas and southeastern New Mexico. It encompasses several sub-basins, including the Delaware Basin and the Midland Basin.

committed to the permian

committed to the permian

“It’s our home. It’s beautiful in its own way … and I like it being taken care of.” In their own words, employees and community neighbors share their views of the Permian.

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reserves

9 billion

barrels of oil and equivalent gas (estimated potentially recoverable reserves in 2016)

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acreage

~2 million

acres in the Permian Basin

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production

96,000

net (chevron share) barrels of crude oil, 320 million cubic feet of natural gas and 25,000 barrels of natural gas liquids daily in 2015

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permian basin tank battery
The Permian Basin is delivering transformational growth for Chevron as we apply advanced technologies and build drilling efficiencies.
permian rig

technology
the permian multiplier

Chevron’s longtime commitment to the Permian region results in a strong portfolio for future development. Our drilling program is expected to grow oil production over the next several years as technology enables greater success in finding and developing shale and other tight—or unconventional—resources.

The Permian Basin’s geology is unique because it contains multiple “stacked plays,” which means one well can produce oil and natural gas from several layers of rock in different geological zones. This multiplies the basin’s oil and natural gas resource potential.

Today in the Permian Basin, Chevron is targeting these stacked plays above and below the rock layers from which we have produced for decades. Application of horizontal drilling, combined with hydraulic fracturing, enables the economic development of these previously inaccessible resources. The stacked plays enable efficient development and production from multiple zones. They also allow for multiple wells from a single pad location using our shared infrastructure. 

"We are fortunate we have been here for a long time, and been here consistently. We are experiencing a renaissance in the Permian Basin today, and we expect to be here for decades to come."

Bruce Niemeyer
Vice President, Mid-Continent business unit

accelerating development
faster, better, smarter

The growth of shale oil and tight gas in the Permian Basin calls for a new development approach we call the “factory model.” Through this more consistent, repeatable and higher-velocity process, we have tripled the pace of our drilling program.

The manufacturing-style focus of the factory model enables us to accelerate development by prioritizing, faster than ever, prospective well locations from thousands of opportunities across Chevron’s Permian Basin acreage.

The approach has lowered drilling costs, reduced the number of days from start of drilling to first production and increased the number of wells each rig drills.

“When you combine our royalty advantage with the good rocks and competitive execution performance, it translates to compelling economics and a deep queue of opportunity.”

Jay Johnson
Executive Vice President, Chevron Upstream

Lear

Did you know? During World War II, the Permian Basin produced 25 percent of the world’s oil.

economic impact

oil and gas
industry pays

>1/3

of New Mexico's state budget

texas oil

and gas paid

$13.8

billion in taxes and royalties in 2015, funding infrastructure and services

in the community

adding social value

Throughout Chevron’s operations, social investments are integral to our approach to doing business. Our primary focus areas are improving the quality of education, especially science, technology, engineering and math (STEM); promoting economic growth; and creating healthier communities. Here are some examples from the Permian Basin.

permian dolores baeza

Chevron’s Take 2 program is providing job training to scores of low-income residents of Midland and Odessa, Texas, helping to break the cycle of poverty by enabling them to gain employment in high-paying areas such as truck driving and nursing.

permian community

Since 2011, Chevron has supported the instrumentation and process control technology program at Odessa College. The program trains students to become highly skilled technicians for the energy industry. Chevron also provided subject-matter expertise to develop the curriculum, recognizing that the work in our industry has changed and will continue to do so. Investing in the program today helps develop innovators for tomorrow.

environment
protecting the permian

Managing water

To help conserve the Permian’s valuable resources we seek to use more brackish than potable water, targeting deeper aquifers that contain water not suitable for human consumption or agricultural usage. We use centralized water facilities and pipelines to reduce truck traffic and associated emissions.
   

Protecting land

We recognize land use as an important issue to local stakeholders and address it through Chevron’s Environment, Social and Health Impact Assessment process. To identify areas of potential environmental, geologic or archaeological sensitivity, we employ early pre-drilling/planning activities.

To minimize our footprint, well pads, access roads and facilities are located to reduce potential surface impacts, and horizontal drilling is employed to produce more with less surface land use. 

Centralized infrastructure such as roads, pipelines and hydraulic fracturing ponds further reduce our footprint by serving multiple well pads. We work with landowners to limit potential impacts to farming and ranching activities and work to avoid sensitive areas, like archaeological sites and habitats of threatened and endangered species.

permian lizard

Chevron took a leadership role on behalf of the industry in West Texas and New Mexico to protect the dunes sagebrush lizard, a species unique to the Permian Basin. Through a voluntary conservation agreement, we committed more than 50,000 acres of our oil and gas holdings as protected habitat. Some of the steps taken to protect the lizard included removing old drilling pads, roadways, fence lines and power poles to prevent habitat fragmentation.

Protecting air

We design and construct facilities to operate reliably and minimize emissions. We verify and maintain asset integrity through an inspection and maintenance program, and we voluntarily conduct other environmental stewardship activities, such as infrared camera surveys and installation of low-emission equipment.