Enverus Intelligence Research released a report Tuesday that quantifies geologically viable but not yet economically proven inventory in Permian Basin. The report investigates the impact this undeveloped resource has at the operator level and the supply outlook for the Permian Basin. Stephen Pratt, author of the report and Enverus’ Permian analyst, said, “Geologically viable but relatively unproven inventory across the Permian Basin will be at the forefront as high-quality drilling locations breaking even below $50 WTI become scarce over the next decade for many operators.”
Pratt said about 80,000 geologically viable locations across Permian Basin break even between $50 WTI and $70 WTI and will be sufficient to sustain production levels until about 2040. Enverus increased its long-term Permian oil production forecast to sustain production levels until 2040, and Enverus forecasts dry gas production from geologically viable inventory will add an additional 2.7 Bcfd in the Permian Basin in 2030.