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Stock impact report

The Permian “Peak” That Isn't [Yahoo! Finance]

ConocoPhillips (COP) 
Last conocophillips earnings: 4/30 07:00 am Check Earnings Report
Company Research Source: Yahoo! Finance
The Permian Basin is set to produce a record 6.76 million bpd this month, and according to the EIA, that figure may stand as the basin's all-time high. In any other oil province on the planet, that sort of declaration would cue the obituaries. But the Permian is not “any other basin,” and this is not a story of decline. It's a story of mutation. What looks like a geological ceiling is, in reality, the industry's pivot point: a shift from hypergrowth to high-efficiency manufacturing, orchestrated by a handful of supermajors who now effectively run the place. The old shale model burned acreage. The new model burns cost. A Basin That Refuses to Behave Like a Basin at Peak Technically, yes, the monthly high may never be topped again. Mature formations, depleted sweet spots, and a decade of drilling have pushed the Permian's geology to adolescence. But that isn't the same as a decline. At least not in a basin where the productivity curve is no longer dictated solely by rock quality. Show less Read more
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