Enverus Intelligence Research estimated in a new report this week there are about 55,000 economically viable drilling locations in Permian Basin at sub-$50 per barrel for crude oil. That’s an increase of 10 percent from last year that Enverus attributes to “high-quality resource expansion and continued cost reductions.” The report, “Permian Basin Play Fundamentals: The Intervals Keep Coming,” was issued Wednesday.
Enverus estimates total undeveloped inventory approaches 100,000 locations when including geologically viable resource. Stephen Sagriff, author of the report and EIR’s director of oil and gas research, said, “Our latest work on the Permian underscores how interval optionality and cost reductions continue to refresh the basin’s runway… Emerging deep zones and development sequencing considerations are increasingly important for understanding where economics hold and where risk may rise as activity shifts deeper or returns to maturing areas.”
Enverus said private operators hold 16 percent of sub-$50 per barrel breakeven inventory. The report said Barnett-Woodford in Midland Basin represents the largest oil-directed expansion opportunity in the lower 48 with more than 6,000 locations.
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