Permian Basin – Hottest Shale Play

The “great land grab”, the hallmark of a renewal in interest in unconventional resources began in the 2nd quarter 2016. With oil prices finally starting to rebound, the future for the Permian Basin is better than for other resource play regions in the U.S. Exploration is targeting areas in the Midland and Delaware sub-basins and on the Central Basin Plateau. The U.S. EIA says the August and September oil production will eclipse every onshore region and come in 2nd to the Marcellus for gas production. Nick Sutton of Resolute Energy Corp, summed up the reasons, “a single Permian Basin well adds more production to the company than all of the Wyoming assets we sold in 2015.” He commented that the Permian Basin is blessed with high volumes and relatively low lease operating expenses. Scott Sheffield, CEO of Pioneer Natural Resources, said in July, "The Permian is the mother lode. You factor in 4,000 feet of shales with 12 to 14 zones to play with...We’ll be drilling that for the next 100, 150 years.”