The Permian Basin is one of the very few oil producing regions where new wells are economic at current prices and will remain economic at prices $15 a barrel lower.
Looking at rig count more specifically, the oil rig count outside of the Permian Basin has remained unchanged.
The oil rig count in the US, including the Permian Basin, has doubled.
Horizontal rigs, those needed to fully exploit a fracked formation from a limited number of drill sites has increased by six fold. And virtually all of them have been added to the Permian Basin.
Rig counts in the Gulf of Mexico, which is really the only active offshore activity in America has declined - too costly.
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