As the oil and gas industry stabilizes, the Permian Basin continues to attract operators and investors. As attention to this shale play has increased, major players are planning on expanding their presence in the next coming years.
Chevron announced earlier this month its plan to step up its production in U.S. shale even though they are cutting their capital spending for a fifth year in a row. This plan includes an estimated $2.5b investment in the Permian Basin of Texas and New Mexico for this year and an increase of 70% for next year.
A chief executive of Chevron stated that the company is only focusing on projects that will return cash within two years. This decision by a major operator helps recognize the Permian Basin’s powerful and lucrative investment opportunities. Other large producers are following suit and multiple operators are agreeing with the solid production and cash flow from the Permian Basin.
In a remote part of the Permian Basin, Apache Corporation is focuses its company’s attention and money. For the next 20 years, Apache will be spending billions of dollars to drill wells in the Permian shale play with plans of increasing production and providing their investors hefty returns.
The Permian Basin is a prolific shale play and one that is at the forefront of the U.S. shale revolution. Once thought to be completely exploited in the 90s, the advancement of drilling technology opened up new reserves and allowed operators to extract oil from the shale rock.
If the majors are calling the Permian shale play “the place to drill”, investors need to take note. Following major operators and pinpointing their key locations will allow an individual to make investment decision based upon hard facts. The oil and gas industry is alive and well, and Eckard Enterprises is eager to see the future of the shale plays. Like our CEO, Troy Eckard, always says, “Follow the rigs”.
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Oil and Gas Investor