Has Midland and Delaware Basin Oil production peaked?

A large increase in drilling and production costs in the USA Shale Oil sector will likely slow the growth of production from the Permian Basins.

To just maintain production hundreds of new wells must be drilled each year due largely to the rapid decline in tight wells. In the Permian Basins in the last 15 years consolidation has been aggressive and while the largest producers, Chevron, Devon and ConocoPhillps have a sizeable drilling inventory smaller companies have exhausted their drilling locations.

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