The Permian Basin is the hottest play in the United States right now for good reason: it boasts the best economics, has tremendous stacked pay potential, and producers are still realizing efficiencies from further delineation of the plays and longer laterals. All of these factors contribute to its recent and continued growth.
The Permian Basin is home to some of the most economic plays in the country and the world. Even within a field within the Permian, there are multiple economic formations. These economics underpinned the growing production profile in the Permian despite the price crash in mid-2014. The great economics have driven the increased rig activity in the Permian Basin as well.
Crude oil takeaway will require the additional flex capacity and the proposed pipelines to come online in a timely manner to avoid any pricing implications due to lack of takeaway capacity.
If the capacity is not available in time, crude oil differentials will become stressed and well inventory awaiting completions may increase as operators wait on infrastructure. If the differentials cover the higher cost of transport, rail may be a short-term solution for getting stranded barrels to market.
Our experts at Drillinginfo have put together this complimentary analysis that identifies the infrastructure related problems that could arise with the forecasted production growth.
Click here to download our exclusive 10-page analysis with key takeaways on the hottest U.S. shale and discover:
* Production forecasts
* WTI breakeven prices for the Permian Basin at the field, formation, and tier level
* Crude and natural gas takeaway capacity
* Gross gas processing capacity
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