Analysts at Wood Mackenzie, Rystad Energy and Goehring & Rozencwajg have said that productivity and growth in the Permian Basin both slowed in recent years, and warned of a continuing trend. Among the reasons cited for the downturn were a dwindling inventory of high-quality drilling locations, frac hits and parent-child well interference. , Scott Sheffield, CEO of Pioneer Natural Resources made this key comment as to his view on the Permian future supply growth: I am lowering my expectations of the Permian, reaching 1 million barrels of oil per day growth annually as it did in 2018. The industry has been trying to address these issues by investing heavily in new wells and improving technology — but it is still struggling with low oil prices.
Analysts at Wood Mackenzie, Rystad Energy and Goehring & Rozencwajg have said that productivity and growth in the Permian Basin both slowed in recent years, and warned of a continuing trend. Among the reasons cited for the downturn were a dwindling inventory of high-quality drilling locations, frac hits and parent-child well interference. The industry has been trying to address these issues by investing heavily in new wells and improving technology — but it is still struggling with low oil prices.