December 21, 2016
As the oil slump moves slowly toward recovery, prognosticators are noting that more rigs will likely be up and operating throughout the Permian Basin. The area, which took a huge hit when oil prices took a dive, could see anywhere from 40 rigs to 150 rigs, depending on the analyst.
Joseph Triepke, founder of research firm Infill Thinking, is predicting 150 rigs added, assuming the recent OPEC oil deal holds. “Companies were going to raise spending levels anyway,” Triepke told the Odessa American. “OPEC was just icing on the cake.”
Jodi Quinnell, with energy intelligence firm Genscape, also indicated that Permian Basin was shaping up to be active, which it has been. Companies in recent months have participated in billions of dollars of land grabs throughout the basin, pushing up the acreage value.
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