OGJ - Permian growth to continue at slower pace

July 6, 2020 – Oil & Gas Journal

Permian growth to continue at slower pace

By Mikaila Adams

The Permian basin may be the first Lower 48 region to show signs of recovery as the oil and gas industry seeks to emerge from a first-half 2020 marred with dramatic cuts to budgets, operations, and production entering the year’s still-questionable second half, there are signs of activity, but at a much slower pace...

Read the full article in the print edition or online here: https://www.ogj.com/general-interest/article/14179937/permian-growth-to-continue-at-slower-pace

...A June 14 blogcast by Jason Ferguson, director at RBN Energy LLC, highlighted these developments. “Permian producers have already begun looking at $35/bbl WTI as a positive development,” spurring some exploration and production companies in the region to end curtailments in June, “while others have been more veiled, saying wells would be coming back later this year.”

Given price volatility, the cautious rhetoric isn’t a surprise, Ferguson said. But if prices stay near current levels, RBN expects “Permian curtailments to shrink to only 275,000 b/d [in June], roughly half of the May level. That would bring June production up to just over 4.22 million b/d, a gain of about 150,000 b/d over [May]." ...