Investing.com - Financial Markets Worldwide
Get 40% Off
Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

Permian Basin still holds 60B-70B barrels, study says, but fears persist

Published 09/25/2017, 06:56 PM
Updated 09/25/2017, 06:56 PM
© Reuters. Permian Basin still holds 60B-70B barrels, study says, but fears persist
  • The Permian Basin holds another 60B-70B barrels of recoverable resources, with a ~$3.3T market value at current prices for WTI crude, according to a new study by IHS Markit.
  • “The Permian Basin is America’s super basin in terms of its oil and gas production history and for operators it presents a significant variety of stacked targets that are profitable at today’s oil prices,” IHS says.
  • Yet fears persist that a bust is near, as costs for all types of oilfield equipment have been rising from 20%-30% over the past year, potentially signaling an overheated situation, and some drillers are starting to venture from prime acreage to less productive formations.
  • The booming field could reach its peak and begin a slow decline as early as 2021 if drillers keep running full tilt and pump too much crude to allow oil prices to rise much, which in turn would kill incentives to develop technologies to recover reserves that are now unreachable or uneconomical, according to an analysis by Wood Mackenzie.
  • Major Permian producers include PXD, CXO, XEC, EOG, PE, DVN, NBL, XOM, CVX, OXY, WPX, RSPP, APC, APA, FANG, SM, EGN, MTDR, QEP, ECA, CPE, LPI
  • Now read: Buy Exxon Mobil

Original article

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.