A version of this story appears in the April 2018 edition of Oil and Gas Investor. Subscribe to the magazine here.
Everything about the Permian shouts big: big areal extent, big production, big rig counts and big potential. Notably, 2018 looks poised to be the biggest year yet for this prolific basin.
In 2017, oil production averaged more than 2.5 million barrels per day (MMbbl/d) in 2017, an increase of 26% from 2016. Additionally, wellhead gas volumes grew by a little above 7% to almost 30 billion cubic feet per day. The growth was largely driven by surging rig counts. Compared with 2016, rig activity essentially doubled with year-end counts at 400 in the Permian. Of those rigs, Stratas Advisors estimated that almost 90% were drilling for the Wolfcamp and Bone Spring plays.
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