The Permian Basin is like the New England Patriots. Much like Tom Brady’s squad, the Permian has produced great results efficiently over time, churning out close to 29 billion barrels since 1921.
This powerful play keeps producing oil at an alarming rate after decades of extraction, which gets you thinking about all the players who have “broken ground” over the years. But what about right now? Who are the major players in this region right now?
To understand the player’s positions, we have to understand the Permian itself. The basin is split up into two major zones, the Delaware Basin on the west and the Midland Basin to the East. Players occupy acreage in these two regions.
Now that we know that, let’s take a look at the three major oil companies making a killing in the Permian in 2017.
Occidental held 2.5 million net acres in the Permian at the end of 2015, with most resources concentrated at Wolfcamp A and Bone Springs in the Delaware Basin. They hold nearly 500,000 more acres than the closest competition and account for 13 percent of total oil produced in the area.
Chevron holds two million acres in the Permian, which they believe holds 9 billion barrels of oil reserves. They produce 96,000 barrels of oil per day thanks to their expanses of land in the region.
Apache holds 1.75 million acres in the Permian, and just discovered a new layer called the Alpine High in the southern portion of the Delaware Basin. They believe this section could hold 3 billion barrels of oil.
There’s a variety of other players, however, these three have a pretty strong hold on the Permian, and will for years to come.
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