The Permian has a mature and well-developed infrastructure. That’s technical talk for having lots of gathering and transportation pipelines. And it’s all connected to Cushing, Oklahoma. Cushing is the biggest U.S. oil hub. And Cushing is linked directly to refineries on the Gulf Coast. That means the Permian has reliable oil sales. Solid economics, good land positions, mature infrastructure, and access to reliable markets make the Permian the king of U.S. oil basins.
As we said earlier, oil trades for between $40 and $50 a barrel in early 2017.
The pullback in prices since 2014 has beaten down most exploration
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