‘Drill, Baby, Drill’ to Make a Permian Basin Comeback

A sharp uptick in Permian Basin permitting indicates that operators are ready to ramp up drilling activity.

Permian-drilling-permits-record

Drilling permits in the Permian saw an “unprecedented period of high activity," offering a clear indication that Permian producers are responding to higher prices, according to Rystad Energy. (Source: Shutterstock.com)

With a spike in global oil demand coupled with crude prices soaring above $100 per barrel, analysts expect a significant increase of drilling activity in North America’s largest shale patch—a move that could bring much-needed relief to pump prices.

“The potential for an additional output of 500,000 barrels of oil per day could represent as much as approximately 4% of total U.S. daily production, hopefully flattening both oil and gasoline prices,” Steve Reese, CEO of Reese Energy Consulting Co., told Hart Energy.

Although the Permian is buzzing with activity to pump more for the oil-thirsty world, Reese believes that the producers will not lose sight of shareholder returns and drilling costs.

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Faiza Rizvi

Faiza Rizvi is a senior editor of ESG for Hart Energy's editorial department, with a strong focus on E&P Plus and HartEnergy.com. She has been covering all facets of the U.S. and international energy industry for over 5 years.