IHS Markit

Production growth in the Permian Basin requires drill rigs running at a high pace. That is challenging companies to push well productivity.

A report from IHS Markit forecasts continued strong production growth in the Permian over the next 5 years despite the well-documented challenges that have recently emerged in the basin.

The chief upstream strategist of IHS Markit said in a recent presentation that oil exploration must improve its ability to deliver value and better communicate that value to the financial community. New ways of thinking about exploration opportunities are needed.

Facing increased pressure to deliver neutral cash flows and stronger corporate returns, North American E&P companies hedged more oil and gas production than usual heading into 2018.