Permian Oil Production to Increase……Leases Top $45,000 per Acre

permianbasin

Experts are predicting the oil production in the Permian Basin will total more than 2 million barrels a day next month and it will be the highest total since 2007, according to the Energy Information Administration.

The EIA indicates the Permian is the only oil play in the U.S. that will see an increase in production. Otherwise, the nation’s oil production is forecast to drop 0.7 % in November to 4.43 MMbpd.

The Permian, the largest oil region in the country is the most profitable shale play in the country and explorers are paying higher prices for drilling rights.

RSP Permian, according to one report paid the equivalent of $45,000 an acre in the Delaware basin.  The amount was paid by RSP Permian as part of its agreement to buy Silver Hill Energy Partners from Los Angeles-based Kayne Anderson Capital Advisors. As OK Energy Today reported, Kayne Anderson made the sale for $2.4 billion and used some of the proceeds to form a partnership with Tulsa producer Casillas Petroleum Corp. and purchase another 30,000 acres in the SCOOP.

Meanwhile the overall output in the Permian is expected to increase 30,000 barrels a day to reach 2.01 MMbopd. The Eagle Ford shale in Texas will drop 35,000 barrels a day. The Bakken in North Dakota and Montana is forecast to plunge another 21,000 bpd.