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In the last three years, oil production in the Permian, which straddles Texas and New Mexico, has jumped 50%, while natural gas production has climbed 30% and NGL output has increased 61%, the 20-page report states. Horizontal drilling, new exploration and production techniques, and a multitude of unconventional producing formations have led to a major Permian renaissance.
The Permian also is showing greater resilience during the recent drop in drilling in response to falling crude oil, NGL and natural gas prices. Permian rig count declines have been mainly vertical rigs, rather than horizontal rigs.
“Unlike other U.S. producing basins, the Permian Basin is less exposed to adverse market conditions because of its more favorable production economics as well as its closeness to major markets,” said Ross Weyno, senior energy analyst at Bentek Energy.
“Nowhere to Hide Except the Permian” provides a detailed overview of the characteristics that make the Permian Basin such an attractive location for producers even in a low-price environment. The report includes detailed information on the following:
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