Permian Basin the “Basin that Keeps on Giving”
The Permian Basin of West Texas is continuing its successful production record, despite oil’s price decline. Thanks to the area’s bountiful geology, and innovations and efficiencies that have made it possible to produce more resources less expensively, the area is booming.
Bloomberg recently highlighted the region’s “tiramisu”-like qualities, noting it rich layers of oil and gas reserves while Railroad Commissioner David Porter boasted last week of the oil industry’s resilience in Texas stating:
“We’ve maintained record production levels — in the face of major challenges — here in Texas because industry has become more innovative and more efficient, and that is an accomplishment to be very proud of”
The Permian Basin in particular, has been a shining star in the state’s fracking revolution and this success continues today. Companies have taken notice of the region, and many are investing heavily to start or expand their operations in the area. According to Bloomberg:
“The region seems to be the place where new companies continue to look to expand, he said. Roughly $50 billion in private-equity capital is funding more than 80 management teams focused on the Permian Basin, Will Giraud, chief commercial officer at Concho Resources Inc., told a crowd of 1,100 attendees on Nov. 10 at the Hart Energy Executive Oil Conference in Midland, Texas.”
Anadarko’s Senior Vice President Enrnest Lyendecker happily stated:
“The Permian is, in my humble opinion, the basin that keeps on giving […] “We love the basin.”
The Permian Basin is a beacon of hope in the today’s challenging price environment. The region continues to keep costs down thanks to innovation and advances in engineering, making it an extremely profitable project for shale drillers. The basin is also extremely attractive to investors and operators because its reserve remain largely untapped at present date. The Permian Basin continues to have a positive production outlook as 2015 comes to a close.
Texans should be thankful to have the prosperous geology of the Permian Basin, which continues to help strengthen our economy – a gift that “keeps on giving.”