Permian’s Private Shale Explorers Expect Modest Growth, Jefferies Says
- Survey finds closely held group planning less than 5% increase
- Explorers say they need crude to be above $70 to make a profit
A pump jack in the Permian Basin area of Loving County, Texas.
Photographer: Angus Mordant/BloombergThis article is for subscribers only.
Most of shale’s private explorers in the Permian are planning modest growth this year as one of the main engines of US oil expansion downshifts amid volatile commodity prices.
A survey of closely held oil explorers showed 69% of Permian firms expect to grow production 5% or less this year, according to Jefferies Financial Group Inc. The same amount expect to maintain or cut their number of drilling rigs this year, the bank said Friday in a note to investors.