Insight
Permian Pulse: Crude supply outlook
Report summary
How big is the wave of Permian production headed our way? It's an important question when we consider what has transpired in the Permian Basin over the last year. The rapid ramp of rigs since May 2016 caught much of the industry off guard. However, the underlying fundamentals to support the rig count are sound. Our breakeven map shows virtually all of the Permian has assets that can be developed at $50/bbl. In fact, our current view shows over 62,000 remaining locations that breakeven under $55/bbl. That equates to over 20 years of low cost drilling inventory at today’s activity levels. The acceleration was catalysed by a burgeoning M&A market, with buyers needing to secure and add rigs to the field to make deals accretive. So how does this translate to production and what are the key factors to consider?
Table of contents
- Permian crude supply: short-term confidence and long-term questions
Tables and charts
No table or charts specified
What's included
This report contains:
Other reports you may be interested in
Insight
North America gas supply basin takeaway monitor
Wood Mackenzie's monthly update on pipeline takeaway capacity across key North America regions.
$950
Insight
US upstream in brief: Banks watching Uinta wax
The US week in brief highlights the need-to-know current events from US upstream. Stories are supplemented with proprietary WoodMac views.
$1,350
Commodity Market Report
North America gas weekly update: LNG underperformance ending
Welcome back Freeport LNG
$1,700
