By Paul Puri
A recent article by Bloomberg Business caught my eye, as it highlights how the Permian Basin in West Texas continues to gain production, even as the oil price slump shows no signs of easing.
Despite the challenges facing U.S. oil, the Permian Basin shale formation stands out as the most stable play in the country, and companies want a part of it, even at $40 a barrel of oil. Despite depressed prices, we see companies still able to bring in a 30 to 40 percent return on investment, thanks largely to new technologies that make it more efficient and less costly to extract oil from shale.
Read Bloomberg’s take here.