Permian Basin Keeps on Pumping

As drilling slows across most of the U.S. due to the low price of oil, operators in the Permian Basin are pumping more than ever. Oil leases and acreage are hot comities in West Texas. Some companies, like ExxonMobil are trying to increase acreage in the Permian Basin, an area that majors largely pulled out of many years ago. Noble Energy Executive vice president, Gary Willingham, explains the strategy, “There’s an old saying, ‘If you want oil and gas, you go where it is.’ ” The Permian Basin contains so much crude, that advanced drilling techniques and increased efficiency can make money for savvy companies even with oil prices 50% below their peak last year. Michelle Foss, director of the Center for Energy Economics at the University of Texas at Austin said, “If you’re a good operator with good acreage in the Permian, you can count on that for your profit margins.”