The Permian Basin is a hot topic in the oil and gas business these days. But the Permian needs infrastructure and the exploration of the basin is really just beginning, according to Bill Davis, principal and founding partner of Vaquero Midstream. Davis was interviewed by Oil & Gas 360®’s Angie Austin at EnerCom’s The Oil & Gas Conference 21.

In regard to the Delaware Basin, Davis said, “We are really at the front end of developing the horizontal shale resources in the Delaware basin. It’s a very wide horizontal extent with multiple stack pays. It’s going to be a huge development for the oil and gas industry.”

When asked about bottlenecks in the Permian created by infrastructure constraints, Davis said, “They’re there today primarily because the area is underserved from a midstream infrastructure standpoint. The existing legacy midstream infrastructure was built for the older style vertical production, which was much lower GPM (gallons per million), and much lower volume wells, compared to the very high volume and high GPM wells that the horizontal drilling programs are developing today. So that’s resulted in a lot of production getting shut in and/or gas [being] flared. Our [gas processing/takeaway] project that we put in is designed to be a basin-wide solution, that will eliminate the need for that kind of waste of resources.”

Interview Questions

  • Bill, can you introduce Vaquero Midstream to those in our audience who may be unfamiliar with the company?
  • Vaquero has operations in the Permian basin. In that area, the Delaware basin seems to be one of the most sought-after plays in the country right now. What kind of activity are you seeing in the Delaware from E&Ps, and how is this affecting your business?
  • If E&Ps are focusing their development budgets on the Delaware, do you foresee infrastructure bottlenecks upcoming—what are they and where?
  • Can you talk about how Vaquero plans to meet growing demand for processing and transmission in the Delaware Basin?

For more of Bill Davis’ unique perspective on the oil and gas industry, watch the video below.

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