Permian Basin 2018

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PERMIAN BASIN: OVERVIEW 4 | October 2018 | B eneath the fl at landscape of West Texas and eastern New Mexico lies one of the world's most prolifi c oil fi elds. While many locals joke that the region "isn't the end of the world, but you can see it from here," those in the oil and gas industry would beg to differ. Since the discovery of the Santa Rita #1 well in 1923, the Permian Basin has seen a boom-and-bust cycle spanning many decades. But there's no question it's in boom mode right now. During a presentation given at the American Association of Petroleum Geologists annual meet- ing, Scott Sheffi eld addressed the "super basin" concept as it applies to the Permian Basin. Shef- fi eld, currently chairman of the board of Pioneer Natural Resources, helped found that company 21 years ago. "We circled around the world thinking that the U.S. was dead, like a lot of CEOs," Sheffi eld said. "We came back to the Permian Basin about seven or eight years ago to fi nd that that we had more than 10 billion barrels of resource potential." Indeed. According to a recent IHS Markit report, production in the play is expected to continue to grow, and by 2023 this production could account for more than 60% of net global oil production. The industry is starting to feel the strain from the region's frantic rate of development. The Permian— Wide Vistas Ahead? By Rhonda Duey Senior Editor, Exploration

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