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Life Outside The Permian: New Report Shows Other U.S. Crude Oil Basins Stagnating

February 24, 2020

Via: Forbes

A new report from Enverus (formerly Drillinginfo) tells a now-familiar story for U.S. producers drilling for oil and gas in basins outside of the Permian: A focus on cutting costs, increasing efficiencies and prioritizing drilling for oil over natural gas.

The report – titled “The Rockies and Bakken in Focus” – illustrates the difficulties for upstream companies in turning a profit in the current constrained price environment. Start with natural gas as a prime example: Given the report’s finding that “breakeven costs to produce in the Rockies and Bakken are well above current Henry Hub prices and typically north of $3.00/MMBtu,” it’s pretty hard to justify drilling new natural gas wells in these regions when the current NYMEX price as of this writing is sitting at $1.852 per MMBtu.

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