Private operators drive Permian recovery

Strong market conditions are encouraging private producers in Texas and New Mexico to lift drilling activity

All the signs are positive for US shale. The WTI crude benchmark has broken through the $80/bl ceiling for the first time in seven years and the rig count has more than doubled since last October. The post-Covid recovery is well and truly gaining momentum. Strong oil prices have compelled producers to work through their backlog of drilled-but-uncompleted wells, as showcased by the rapidly rising rig count. Last week, the rig count climbed to 533, its highest recorded level since early April last year when the pandemic first started to sink drilling activity.    And the Permian basin—the bulwark of Lower 48 oil production—is leading the recovery. The rig count in the basin has recently soared