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
17 January 2025
Supply glut or supply deficit are both plausible outlooks, with tariffs and sanctions among the key risks that could swing the pendulum
17 January 2025
European Commission is on its way to meeting clean energy goals, but energy security concerns and higher costs may give it second thoughts
17 January 2025
The CEO of QatarEnergy has highlighted the potential impact a new EU directive could have on energy exports to the continent
16 January 2025
The government’s resource nationalism is aggravating the NOC’s debt position and could yet worsen if also tasked with the decarbonisation shift
