Economics
Mind the Drop: Decline Rates From Maturing Oil Wells on the Rise
- Lower flows, less investment combine to buttress high prices
- On-the-ground issues could push rally beyond politics
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Oil producers in the Permian Basin and elsewhere could soon find themselves facing the oilfield equivalent of trying to walk up the down escalator.
The oil industry, and particularly the Permian, is in the midst of a boom. But analysts say new hints that maturing wells are falling well short of projections are prompting fresh worries that the industry may not be able to meet robust demand moving forward.