Enverus Intelligence Research (EIR), a subsidiary of Enverus, has unveiled a novel report that presents a comprehensive analysis of the geologically promising yet economically unverified reserves within the Permian basin. The report delves into the consequential ramifications that these untapped resources wield at both the operator level and the overall supply projection of the basin.
Pictured: Oil production rig in the Permian basin.
Stephen Pratt, an authoritative figure in Permian analysis and the author of the report at EIR, emphasized, "The impending spotlight will be on geologically viable yet relatively unproven reserves across the Permian basin, given the diminishing availability of high-quality drilling locations that can break even below the $50 WTI threshold over the next decade for many operators."
He continued, "Approximately 80,000 geologically viable locations across the Permian basin are notably situated in a break-even range spanning $50 to $70 WTI. These locations are anticipated to play a pivotal role in maintaining production levels until around 2040, effectively extending the years of remaining inventory from 17 to an impressive 32 years."
Key insights derived from the report underscore the concept of Geologically Viable (GV) inventory, which pertains to unexplored resources positioned beyond the boundaries of economically substantiated zones across the Permian basin, yet firmly situated within geologically feasible corridors. This conceptual addition not only injects a fresh 15-year span of inventory at present drilling rates but also contributes to a more robust perspective on resource potential.
EIR, in response to these revelations, has significantly revised its long-term projection for oil production within the Permian basin, anticipating sustainability until the year 2040. Furthermore, EIR's prognostication anticipates the inclusion of approximately 2.7 billion cubic feet per day (Bcfd) of dry gas production from the GV inventory, effectively augmenting the Permian's overall gas output by the year 2030.