RigData Insights

Permian Continues To Outperform

  • Tuesday, June 2, 2015
  • Posted By Unknown
While some other unconventional plays in North America have seen a production slowdown, the Permian Basin’s have continued to outperform and increase production of oil, according to the RigData News & Analysis team’s RADAR Report. Since 2007, the Permian Basin has seen growth in oil production year after year.  Many companies are reporting cost reductions of -20% to -40% vs. 2014 levels in the Permian Basin.  With these levels of reduction in costs, operators could see a margin of $10-25/bbl of oil when WTI is at $60/bbl. Even though operators have been successful in reducing well costs in the Permian Basin, notably with a large reduction in completion costs, some are still holding off on completing these wells.  With large backlogs in well completions continuing to build and WTI prices slowly on the rise, the future completion services in the area could prove lucrative.  If the WTI price stabilizes around $65/bbl, operators will begin completing more backlogged wells in the latter part of the third quarter and fourth quarter of this year.




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