In what is good news for royalty owners and mineral owners in the Permian Basin in Texas, the Energy Information Administration (“EIA”) recently issued a Drilling Productivity Report that projects that output from the Permian Basin will increase by almost 3000 barrels of oil per day.The Permian Basin
The Permian Basin is located in West Texas and southeastern New Mexico and includes Andrews, Borden, Ector, Loving, Midland, Pecos, Ward and Winkler Counties. The increase in production is probably the result of not only new wells, but also greater efficiency in drilling operations.
The Permian Basin is the only shale region for which the EIA predicts an increase. Other basins, such as the Bakken, the Eagle Ford and the Haynesville are predicted to experienced decreases in production.
There will probably be new leasing activity in the Permian Basin this fall. If you are a Permian Basin mineral owner and you receive a lease offer, your best bet is to contact an experienced oil and gas attorney and have them review that offer to make sure you’re getting the best possible terms and to make sure your land and mineral interests are protected to the full extent of the law.