Platts' Bentek Energy -- Special Report: Nowhere to Hide Except the Permian

DENVER, April 7, 2015 /PRNewswire/ -- The Permian Basin in West Texas is the most active hydrocarbon-producing area in North America, and even in a low-price environment it remains among the most favorable areas on the continent to drill of oil, natural gas liquids (NGL) and natural gas, according to the latest report issued by Bentek Energy, an analytics and forecasting unit of Platts. Platts is a leading global energy and commodities information provider.

In the last three years, oil production in the Permian, which straddles Texas and New Mexico, has jumped 50%, while natural gas production has climbed 30% and NGL output has increased 61%, the 20-page report states.  Horizontal drilling, new exploration and production techniques, and a multitude of unconventional producing formations have led to a major Permian renaissance.

The Permian also is showing greater resilience during the recent drop in drilling in response to falling crude oil, NGL and natural gas prices. Permian rig count declines have been mainly vertical rigs, rather than horizontal rigs.

"Unlike other U.S. producing basins, the Permian Basin is less exposed to adverse market conditions because of its more favorable production economics as well as its close proximity to major markets," said Ross Wyeno, senior energy analyst at Bentek Energy.   

"Nowhere to Hide Except the Permian" provides a detailed overview of the characteristics that make the Permian Basin such an attractive location for producers even in a low-price environment. The report includes detailed information on the following:

• The Permian crude oil market;
• NGL infrastructure and natural gas market dynamics in the Permian and surrounding regions;
• A forecast of Permian crude oil, NGL and natural gas production over the next five years; and,
• A review of major challenges and risks ahead for Permian producers.

"Bentek currently expects Permian oil production to increase 40% over the next five years," Wyeno said. "However, the Permian is not immune to adverse market conditions. If crude prices fall to less than $40 per barrel for a sustained period, Permian production would be at risk."

The full report is complimentary to Bentek Energy subscribers.  Accredited media may schedule interviews with the report authors by contacting Platts Communications.

For more information on oil, natural gas and NGLs, visit the websites of Bentek Energy and Platts.

About Platts: Founded in 1909, Platts is a leading global provider of energy, petrochemicals, metals and agriculture information and a premier source of benchmark prices for the physical and futures markets. Platts' news, pricing, analytics, commentary and conferences help customers make better-informed trading and business decisions and help the markets operate with greater transparency and efficiency. Customers in more than 150 countries benefit from Platts' coverage of the biofuels, carbon emissions, coal, electricity, oil, natural gas, metals, nuclear power, petrochemical, shipping and sugar markets. A division of McGraw Hill Financial (NYSE: MHFI), Platts is based in London with more than 1000 employees in more than 15 offices worldwide. Additional information is available at www.platts.com.

About McGraw Hill Financial: McGraw Hill Financial  (NYSE: MHFI) is a leading financial intelligence company providing the global capital and commodity markets with independent benchmarks, credit ratings, portfolio and enterprise risk solutions, and analytics. The Company's iconic brands include: Standard & Poor's Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, Platts, CRISIL and J.D. Power. The Company has approximately 17,000 employees in 30 countries. Additional information is available at www.mhfi.com.

SOURCE Platts

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