OPEC’s Worst Nightmare: Permian Ups Production
The Permian is not the biggest problem OPEC has. Saudi Arabias resource problem is far bigger. Their reserves are not nearly as big as they pretend which is why they have stopped their IPO. Transparency rules in open markets demand more than just their word that the oil is really there and recoverable. The area of cheap oil is over.
An infestation of dots, thousands of them, represent oil wells in the Permian basin of West Texas and a slice of New Mexico. In less than a decade, U.S. companies have drilled 114,000. Many of them would turn a profit even with crude prices as low as $30 a barrel.