The Permian Basin has long been the most important oil and gas producing area in the United States. A lot of history has focused on the buildup of resources that allowed the USA to ultimately bring the Second World War to a conclusion. What fueled those resources? The Permian Basin. And now, if we look at current permitting activity in the United States, the brightest spot of activity is clearly in the Permian Basin.
Image Source: Drillinginfo’s Business Intelligence Dashboard (Upcoming Beta)
Just last week, a Chinese investment firm invested $1.3 billion in the Permian, so while we are seeing contraction in most of the other North American basins, the Permian is still inspiring big deals in the down market.
The Permian Basin has had three major depositional events – Mississippian, Pennsylvanian, and Permian. Let’s look at the structure through some of those periods in the more easterly Midland Basin portion of the Permian.
Image Source: Drillinginfo Midland Basin Play Assessment
Let’s look at the Midland Basin in a different way, the following image shows a cross section of logs and formation picks (we have over 18,000 picks in the Midland Basin alone) on a west-to-east cross section through Martin and Howard Counties.