Time may be running out for Permian assets
Clock ticking on Permian stranded assets
Reduced drilling activity over the past year is increasing the threat of premature write-downs in the basin
Consolidation in the Permian has bounced back, with $33.4bn in deals recorded since Q2 last year and many big names merging to leverage operational synergies. But while several operators have added substantial inventory, reduced drilling activity and cautious capex raise the risk of stranded acreage in the long term. The Permian rig count has doubled from its low point last year, when it slumped to less than 120. The stronger oil price has helped boost drilling activity, but in Q2 the count still averaged 175 fewer rigs than were recorded over Q1 last year—a 43pc deficit. Several of the biggest Permian independents merged with smaller shale competitors over the past pandemic year, adding acr
Also in this section
19 March 2026
The regional crisis highlights the undervalued role of fixed pipelines in the age of tanker flexibility
18 March 2026
Rising LNG exports and AI-driven power demand have raised concerns that US gas prices could climb sharply, but analysts say abundant shale supply and continued productivity gains should keep Henry Hub within a range that preserves the competitiveness of US LNG
18 March 2026
Risks of shortages in oil products may cause world leaders to panic and make mistakes instead of letting the market do what it does best
17 March 2026
The crisis in the Middle East has put LNG’s ability to offer security and flexibility under uncomfortable scrutiny
