Technology Driving Economics, Rebound in Permian

Commodity price stability has prompted an uptick in activity in select resource provinces around the U.S. Lower 48, and while the sleeping giant might still be a bit woozy, there is every indication that the West Texas Permian Basin will be one of the brighter spots illuminating an industry rebound in late 2016 and early 2017. Since spring of this year, West Texas Intermediate oil prices have been consistently hovering between $45/bbl and $50/bbl. Natural gas also has found a bit of footing, rising from about $2.50/Btu to $3.25/Btu from April through September 2016. The newfound stability has given producers the opportunity to run the slide rule across various projects throughout the U.S. and find the ones that make the most economic sense for their limited coffers. The Permian has emerged as an attractive target.