October 28, 2024
Permian Central
Permian Central oil full-cycle costs at West Texas Intermediate (WTI) equivalent range from a low of USD $36.25/Bbl for wells with an Initial Productivity (IP) greater than 1800 Bbl/d to a high of USD $76.60/Bbl for wells with an IP of under 300 Bbl/d. Average Operating costs USD $9.10/Bbl while royalties & taxes and overhead are USD $24.82/Bbl. F&D costs range from USD $1.64-$20.24/Bbl and the 15% producer return ranges from USD $1.92-$23.67/Bbl. The assumed WTI differential is USD $-1.23/Bbl.
Full Cycle Cost Curve
Incorrys analysis shows that there is 3,300 MMBbl of oil resource available below USD $50/Bbl and 3,550 MMBbl available below USD $60/Bbl. Current production (2023) was almost 65 MBbl/d (23.7 MMBbl/yr).
Permian Delaware
Permian Delaware oil full-cycle costs at West Texas Intermediate (WTI) equivalent range from a low of USD $41.41/Bbl for wells with an Initial Productivity (IP) greater than 1800 Bbl/d to a high of USD $183.94/Bbl for wells with an IP of under 300 Bbl/d. Average Operating costs are USD $8.24/Bbl while royalties & taxes and overhead are USD $21.82/Bbl. F&D costs range from USD $7.02-$86.60/Bbl and the 15% producer return ranges from USD $5.56-$68.51/Bbl. The assumed WTI differential is USD $-1.23/Bbl.
Full Cycle Cost Curve
Incorrys analysis shows that there is 28,500 MMBbl of oil resource available below USD $50/Bbl and 29,500 MMBbl available below USD $60/Bbl. Current production (2023) was about 2,930 MBbl/d (1,100 MMBbl/yr).
Permian Midland
Permian Midland oil full-cycle costs at West Texas Intermediate (WTI) equivalent range from a low of USD $43.86/Bbl for wells with an Initial Productivity (IP) greater than 1800 Bbl/d to a high of USD $188.52/Bbl for wells with an IP of under 300 Bbl/d. Average Operating costs are USD $8.77/Bbl while royalties & taxes and overhead are USD $23.55/Bbl. F&D costs range from IUSD $7.67-$94.60/Bbl and the 15% producer return ranges from USD $5.09-$62.83/Bbl. The assumed WTI differential is USD $-1.23/Bbl.
Full Cycle Cost Curve
Incorrys analysis shows that there is 20,500 MMBbl of oil resource available below USD $50/Bbl and available below 24,000 MMBbl at USD $60/Bbl. Current production (2023) was 2,500 MBbl/d (900 MMBbl/yr).
Permian Basin Location
The Permian Basin, located in west Texas and southeast New Mexico, is the most prolific US oil basin.
Number of Drilling Locations
Incorrys estimates that the Permian has over 145,000 drilling locations with initial productivity above 300 Bbl/d and over 140,000 drilling locations with initial productivity below 300 Bbl/d.