It’s not all doom and gloom in the energy industry.
The Permian Basin is actually showing an increase in output.
Chevron, ConocoPhillips, and EOG Resources might benefit from lower drilling costs there.
Shareholders will be rewarded as the result.
Much has been written, and spoken, about a slide in energy shares and prices over the past 18 months. Many drillers have had to cut back on capital investments, staff, and production, especially in Colorado, Louisiana, and the Bakken shale formations of western North Dakota and eastern Montana. This has led to a slowdown in overall U.S. output for the first time in about five years. Is this the end of the boom?
One energy patch that is bucking the trend, production is actually increasing, is the Permian Basin of west Texas and southeastern New Mexico, which accounts for nearly a fifth of all domestic liquids output.