Russia and OPEC are Permianently Fracked
The effort to bankrupt the frackers failed miserably. Now shale output from the Permian Basin in Texas is expanding faster than the world thought humanly possible.
by Ambrose Evans-Pritchard
March 8, 2017
The OPEC oil cartel – and Putin’s Russia – are waking up to an unpleasant surprise. Shale output from the Permian Basin in Texas is expanding faster than the world thought humanly possible.
The scale threatens to neutralize output cuts agreed by Saudi Arabia and a Russian-led bloc last November, and ultimately threatens break their strategic lockhold on the global crude market for a generation.
“People just don’t seem to realize how big the Permian is. It will eventually pass the Ghawar field in Saudi Arabia, and that is the biggest in the world,” said Scott Sheffield, founder of Pioneer Natural Resources and acclaimed ‘King of the Permian’.
“We think it could produce 8-10m barrels a day (b/d) within ten years. We’re telling our investors that Pioneer alone could reach one million,” he said. Roughly 70% of this would be crude oil, and the rest in gas and liquids.
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