Permian Has More Oil Than Thought: 4 Stocks Worth Tracking

Energy investors should make merry as the most prolific oil basin in the United States has more crude reserves to offer than what was thought. For years, Permian Basin has been contributing to the nation’s oil production boom and has lifted America to the position of net oil exporter after 75 long years.

Per a notification by Chevron Corporation (CVX - Free Report), the largest oil fields in America are all centered in the Permian Basin. The basin holds more than 20 of the best 100 crude-producing fields in the domestic market.

However, by Permian, we mainly mean its sub-basin Midland which is broadly known and mostly drilled. Delaware, the other sub-basin, has far higher oil and gas resource bases, claimed U.S. Geological Survey (USGS). The news definitely reflects further production growth potential for the leading U.S. drillers operating in the broader Permian, specifically Delaware.

Permian Backs US to Energy Independence

Considering U.S. Energy Information Administration’s (EIA) chart for the nation’s field production of crude oil, it has been a clear picture that America has managed to boost oil production in the past decade. EIA data showed that from 158,566 thousand barrels of oil volumes since January 2008, the United States has more than doubled its crude output to 344,239 thousand barrels, as of September 2018.

Among the prolific domestic oil and gas producing regions — Anadarko, Appalachia, Bakken, Eagle Ford, Haynesville, Niobrara, and Permian — Permian’s contribution has been the highest to America’s massive oil production growth. EIA claimed that Permian's crude production has dramatically increased from below 1,000 thousand barrels a day, through entire 2009, to 3,632 thousand barrels a day in November 2018.

Investors should know that the advent of technologies like horizontal drilling and hydraulic fracturing are primarily aiding Permian to back President Donald Trump’s policy of making America energy-independent.

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