Permian oil slump tests industry resilience at $60
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MIDLAND, TEXAS — Local oilfield businesses reported falling sales and idled rigs as crude near $60 per barrel tested the Permian Basin this week. Store owner Mark Waters said his oilfield sales fell about 25% over four to six months. Reuters interviews with producers, service firms and residents found layoffs, reduced activity and production that has yet to register full impact. Executives said drilling and completion costs run about $10–12 million per well, 5–10% higher than a year earlier. Some operators warned current production levels could become unsustainable if prices remain low. Based on 5 articles reviewed and supporting research.
Prepared by Christopher Adams and reviewed by editorial team.
Timeline of Events
- Permian production expanded during prior shale boom periods.
- Crude prices settled near $60 per barrel, pressuring margins.
- Local suppliers reported approximately 25% sales declines over four to six months.
- Reuters interviews with about ten producers, service firms and residents documented idled rigs and layoffs.
- Executives cited drilling and completion costs of $10–12 million per well, 5–10% higher year-on-year.
- Articles Published:
- 5
- Right Leaning:
- 0
- Left Leaning:
- 2
- Neutral:
- 3
- Distribution:
- Left 40%, Center 60%, Right 0%
Larger oil producers with lower per-barrel costs were better able to maintain production and protect margins relative to local service firms.
Local service businesses, equipment suppliers and oilfield workers experienced declines in sales and rising layoffs as activity slowed around the Permian Basin.
Coverage of Story:
From Left
Shale rigs idle, layoffs rise as $60 oil tests resilience of Permian | BOE Report
BOE Report DevdiscourseFrom Center
Permian oil slump tests industry resilience at $60
Investing.com Hellenic Shipping News Pulse24.comFrom Right
No right-leaning sources found for this story.
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