Published on 28 May 2024 on Zacks via Yahoo Finance
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 (βWTIβ) 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.