A Growing Consensus: The Permian Basis May Hold Much More Oil Than Ever Estimated In The Past -- 100 Years Of Drilling?

247WallStreet is reporting:

The Permian Basin in West Texas is truly a story of the Phoenix rising from the ashes. Since its discovery, the oil-rich region has had its ups and downs, with activity sloping downward through the 1960s and early 1970s, reviving with higher oil prices in the late 1970s and 1980s, dwindling again in the 1990s and then roaring back in the 2000s. Now there is a growing consensus that the region may hold much more oil than was ever estimated in the past.

In a new research report, the oil exploration and production analysts at Wunderlich make it very clear they like the Permian for the variety of stacked pays offered. They also think that producers are just starting to understand the full potential of the resource plays in the region. They estimate that there is the potential for more than 100 years of production and that the region could have well over a billion barrels of oil. Due to the incredible resource size, most of the major exploration and production companies are there, in addition to the large integrateds.

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The companies that would benefit:

• Anadarka
• Apache
• Chevron
• ConocoPhilips
• XOM
• EOG
• OXY

Summary:

The big boys have a decided edge in the Permian Basin. They have the financial firepower to cover the costs associated with working in far West Texas. They also provide investors with the security of longevity and success. That bodes well for the future of a portfolio with these top names.
These Permian Basin companies are poised to increase American oil production significantly. Currently the number stands at about 7 million barrels per day. One way the United States may be able to fight out of its current economic malaise is to become a net exporter of energy, both oil and natural gas. With the possibility of over a billion barrels of oil in the region, new exporting may be a reality sooner rather than later.