A recently published opinion article by energy analyst David Blackmon in Forbes paints a slightly rosier picture for the immediate future of Permian Basin shale plays, in contrast to many recent “doom and gloom” articles heralding their imminent decline. While acknowledging that some operators have been overly-aggressive with well spacing, he reports that average per-well recoveries continue to grow. According to Allen Gilmer, Founder and COB of DrillingInfo, one reason why so many analysts acquire false beliefs about the health of the Permian play is due to a tendency to apply poor results of one operator to the entire basin. Inherent heterogeneities in unconventional rocks makes such widespread assumptions misleading.
The full article may be viewed here: https://www.forbes.com/sites/davidblackmon/2019/08/08/heres-what-is-really-happening-in-the-permian-basin/#d30e18f81ab2
