XOM - Permian Break-Even Costs Low: 3 Energy Stocks to Gain | Benzinga
With its low break-even costs and reliable regulatory framework, the Permian Basin presents an appealing opportunity for oil and gas investors seeking sustained growth and profitability over the long haul. The current favorable oil pricing environment further enhances the business outlook in the United States' most prolific basin.
Rising Oil Prices
West Texas Intermediate ("WTI") crude is nearing $80 per barrel, fostering an excellent climate for exploration and production. The U.S. Energy Information Administration predicts that the average spot price of WTI crude will rise to $83.05 per barrel this year, which is highly beneficial for upstream operations. This attractive pricing scenario is largely due to voluntary production cuts by the OPEC+ group and persistent geopolitical tensions.
Low Break-Even Cost in Permian: A Game-Changer
Covering an expanse of about 250 miles in width and 300 miles in length, the Permian Basin extends over regions of both West Texas and southeastern New Mexico, housing the immensely productive Delaware and Midland sub-basins within its bounds. Notably, the Permian Basin boasts some of the lowest break-even prices in the United States, typically below $50 per barrel for existing wells, per media reports.
According to Statista, a German ...