(World Oil)– The Permian basin continues to reinforce its position as the lowest-cost U.S. shale play, with an estimated 55,000 drilling locations capable of breaking even below $50/bbl, according to new analysis from Enverus Intelligence Research (EIR).
The estimate represents roughly 10% year-over-year growth, driven by ongoing resource delineation, improved well performance and continued cost efficiencies. The sub-$50/bbl inventory is nearly double that of several other major North American plays combined, underscoring the basin’s competitive advantage amid heightened market volatility.
EIR estimates total undeveloped inventory approaches 100,000 locations when including geologically viable resources, with recent additions significantly expanding both location count and recoverable volumes. Much of the incremental resource is concentrated in emerging deeper zones, including the Barnett-Woodford and Wolfcamp D intervals.
The report highlights the growing role of these deeper targets in extending the basin’s development runway, while also introducing new technical and economic considerations. As activity shifts toward more complex zones and maturing acreage, development sequencing is expected to play a larger role in determining project economics.
Performance data cited in the report indicates that wells in the Midland Basin’s Barnett-Woodford interval have recently exceeded average basin results, with breakeven costs aligning in the low-$40/bbl range under current cost assumptions.
While top operators continue to control a significant portion of high-quality inventory, EIR noted that private and smaller operators also hold a meaningful share of low-cost locations.
The findings highlight the Permian’s ability to sustain drilling activity through commodity price cycles, even as operators balance capital discipline with longer-term inventory management.
