The U.S. is increasingly looking at this Texas region for oil

Published: Nov 16, 2016 10:51 a.m. ET

One Texas oil-and-gas area now has about as many rigs as the rest of the U.S. combined

 

West Texas’ Permian basin holds nearly as many active oil and gas drilling rigs as the rest of the United States combined — and that includes offshore rigs in the Gulf of Mexico.

The Energy Information Administration’s November drilling productivity report also showed that the Permian is the only region where crude oil production is expected to increase for the third straight month.

 

Oil hovered around $50 a barrel last month, boosted by an Organization of the Petroleum Exporting Countries’ decision to consider a possible output cut when it meets in Vienna Nov. 30.

Prices have since slid to mid $40s on uncertainty ahead of the OPEC meeting and ongoing concerns about oversupply. Analysts, however, expect prices around $50 a barrel for next year and generally see oil prices rising after two years in the doldrums.

Hopes for higher crude prices have heated up mergers and acquisitions for oil companies, even though they are still suffering from the effects of low oil prices.

 

 

http://www.marketwatch.com/story/the-us-is-increasingly-looking-at-this-texas-region-for-oil-2016-11-15