Is the Permian Basin the world鈥檚 marginal barrel?

鈥淚 suspect that it鈥檚 pretty close to that. Most people are producing flat out,鈥� Dan Pickering, chief investment officer for Pickering Energy Partners, said at Hart Energy鈥檚 DUG Executive Oil Conference & Expo. 鈥淚f we鈥檙e going to keep producing at 6 million barrels a day here, what鈥檚 the price required to get there?鈥�

Today, the Permian Basin remains the world鈥檚 most prolific oil and gas basin as operators have advanced drilling and completion techniques to boost production and improve breakeven prices. They are drilling 4-mile laterals, upsizing well spacing and using U-turn, or horseshoe, well designs to improve efficiency, boost production and lower costs. They are producing more with fewer rigs, and some are bolting on contiguous acreage to further unlock synergies.

Is the Permian Basin the world’s marginal barrel?

“I suspect that it’s pretty close to that. Most people are producing flat out,” Dan Pickering, chief investment officer for Pickering Energy Partners, said at Hart Energy’s DUG Executive Oil Conference & Expo. “If we’re going to keep producing at 6 million barrels a day here, what’s the price required to get there?”

Today, the Permian Basin remains the world’s most prolific oil and gas basin as operators have advanced drilling and completion techniques to boost production and improve breakeven prices. They are drilling 4-mile laterals, upsizing well spacing and using U-turn, or horseshoe, well designs to improve efficiency, boost production and lower costs. They are producing more with fewer rigs, and some are bolting on contiguous acreage to further unlock synergies.