Price of drilling rights in Permian Basin dropped 67% in 2 years

 

The price to drill in the Permian Basin of West Texas and New Mexico, the biggest and highest producing oil region in the U.S. has tumbled as the COVID-19 pandemic continues pummeling the oil and gas industry.

Bloomberg reported that drilling rights plunged an estimated 67% compared to two years ago. In recent months, the average was about $24,000 an acre according to the Oslo-based research firm, Rystad Energy.

Drilling rights throughout the rest of the U.S. are down from $17,000 two years ago to about $5,000 so far this year.

Click here for full story from Bloomberg.