DVN - Hartstreet: Lea County King Concho Dethrones EOG
Oil production increases continue in the Permian. Inadequate takeaway capacity was thought to limit oil production from West Texas, but this has not occurred. We have seen widening differential for Permian crude, but this has not been enough to slow development. Operators have hedged for WTI, but more importantly have hedged logistical cost. These aren't the only reasons why the Permian continues to outperform, as monster well results continue from the region.
The slide above provides average break-evens in Texas and other US shale. We have seen this drop a great deal in recent years,