Straddling western Texas and southeastern New Mexico, the Permian Basin has become one of the most attractive North American drilling regions, particularly as oil prices start to stabilize. Once deemed a declining conventional basin, the use of horizontal drilling there in 2012 transformed the Permian into a “Super Basin” – those with a cumulative production of more than 5 billion Boe.
IHS Markit believes the Permian will unilaterally support an increase in US crude production of more than 500,000 barrels per day in 2017 and will produce a total liquids output of more than 4 million barrels per day by 2021. Not surprisingly, the Permian has emerged as the premier US upstream M&A target, with the value of transactions reaching $25.6 billion in 2016 (41% of the total US upstream deal value) and continuing a strong upward trend in 2017.
IHS Markit is closely tracking all activity in the Permian. We invite you to bookmark this page and return frequently to learn more about the critical issues companies working in the Permian need to consider.