In the early 1980s, the Permian Basin seemed to have exhausted its supply of oil, forcing investors to turn elsewhere. Although the region lay untapped for many years, it has recently attracted a great deal of interest, thanks to new technology that provides access to deep reserves. Here are some of the factors contributing to the success of the Permian Basin oil industry:
For many years, drilling for oil was a risky venture, as there was little guarantee of an easily accessible and plentiful reserve. However, with modern oil extraction techniques such as hydraulic fracturing and horizontal drilling, obtaining oil is easier and much more likely, making for steadier investment opportunities. With the risk of investing minimized, many people are turning once again to this industry, enabling the continued development of effective drilling techniques.
Elevated Oil Prices
The value of oil has been increasing steadily since 2008 and is projected to rise even further in the coming year due to economic recovery in major oil-consuming countries. The Permian Basin is poised to take advantage of favorable market conditions, due to its large reserves that are now accessible to oil producers.
Unlike other thriving regions of oil production, the Permian Basin is equipped to handle an enormous output. Scalable methods of transporting the oil already exist, enabling production companies to efficiently capitalize on new reserves.
With an increasing demand for oilfield service workers in the Permian Basin, the area’s unemployment has dropped dramatically. In response, real estate prices have increased, and tiny neighboring towns are experiencing major growth. The resulting sales tax revenue is boosting city improvements, making the area even more attractive for workers and investors alike.
Aegis Oil is focusing on lease acquisition in the Permian Basin as well as other promising West Texas regions. Call (888) 927-3563 or contact us online to learn how you can become a part of our lower-risk ventures.