Oil’s $5 Trillion Permian Boom Threatened by $70 Crude - Bloomberg

Oil’s $5 Trillion Permian Boom Threatened by $70 Crude - Bloomberg:

"

Gaylon Wampler/Corbis

Oil and gas operations the Permian Basin oil and gas field of West Texas.

Bryan Sheffield, a third-generation oil wildcatter in Texas’s Permian Basin, knows what he’ll do if crude drops to $80 a barrel: shut down half his drilling rigs and go on a takeover hunt for weaker rivals.
17:04

Sheffield is among producers who’ve together invested $150 billion in the Permian since 2010 seeking their piece of an oil trove estimated to be worth as much as $5 trillion. As the money pours in, risks are mounting of a bust as analysts including Marshall Adkins of Raymond James & Associates Inc. forecast crude is heading down to $70 a barrel next year, a price that would slow drilling in the most expensive U.S. shale formation."

'via Blog this'