Energy Prospectus

The decline in oil prices has served to concentrate activity in the heart of the Permian, as producers seek to stay economic. In defining the Permian, the EIA considers 43 counties in western Texas and southeastern New Mexico. However five counties, Martin, Loving, Midland, and Reeves in Texas and Lea in New Mexico, are the primary focus of activity. In November 2016, the most recent data that the EIA has available, these five counties produced 882 MBOPD, more than 40% of total Permian region oil production in that month. More than half of the rigs that have been added in the Permian since prices began to recover have gone to these five counties, meaning that this dominance will only continue.

Permian Basin (covers 19 million acres):
> Current production is 2.3 million bbls of oil per day (including NGLs) + 8.0 Bcfpd of natural gas.
> 45% of lower 48 oil production
> 2nd largest oil field in the world (although calling it one big oil field is not quite accurate)

Saudi Arabia's Ghawar Field produces 2X the amount of oil per day as the entire Permian Basin