Permian Basin Poised for New Boom as Major Oil Discovery Fuels Optimism
The Permian Basin, spanning western Texas and eastern New Mexico, is buzzing with optimism as local officials anticipate another boom. Despite recent revenue declines, demand for services like road maintenance and emergency response remains high in Permian counties. County governments heavily rely on property taxes from oil and gas properties, leading to budget fluctuations with oil prices.
The Permian's fortunes have fluctuated over the years. Since the late 2000s, it has shifted from steady decline to rapid expansion in oil and gas production. During low oil prices, it outperformed other major shale plays like the Bakken and Eagle Ford. Local officials, accustomed to industry volatility, report stronger public finances after the most recent boom.
Recently, Apache announced a major new oil find in the southern Permian basin, near the Davis Mountains. This discovery adds to the region's potential, with the US Geological Survey estimating that the Wolfcamp shale formation contains 20 billion technically recoverable barrels of oil, making it the richest shale play in the United States. Oil production in the Permian has grown significantly, from approximately 800,000 barrels per day in 2008 to over 2 million barrels per day.
The Permian Basin's resilience and potential are evident in its ability to weather low oil prices and bounce back stronger. With recent discoveries and robust production growth, the region is poised for another boom, bringing optimism to local officials and communities alike.
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