Enverus quantifies unproven inventory in Permian basin, increasing oil, gas production levels

World Oil Staff August 29, 2023

(WO) — Enverus Intelligence Research (EIR), a subsidiary of Enverus, has released a new report that quantifies the geologically viable but not yet economically proven inventory in the Permian basin and investigates the associated impact that this undeveloped resource has at the operator level and the supply outlook of the basin.

“Geologically viable but relatively unproven inventory across the Permian basin will be at the forefront, as high-quality drilling locations breaking even below $50 WTI become scarce over the next decade for many operators,” said Stephen Pratt, report author and Permian analyst with EIR.

“The incremental ~80,000 geologically viable locations across the Permian primarily break even between $50 and $70 WTI, and will be sufficient to sustain production levels until ~2040 and extend the years of inventory remaining from 17 to 32,” Pratt said.

Key takeaways from the report. Geologically viable (GV) inventory is an undeveloped resource ascribed to locations that fall outside the economically proven extents across the Permian basin, but are within geologically viable fairways. This adds 15 years of inventory at current drilling levels.

EIR has increased its long-term Permian basin oil production forecast to sustain production levels until 2040. EIR forecasts dry gas production from GV inventory will add an additional roughly 2.7 Bcfd in the Permian in 2030.

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