“All Permian, all the time” has increasingly become an industry mantra over the past couple of years, with Scoop/Stack thrown in. And with the Permian’s seemingly bottomless inventory pit of stacked pays, that’s unlikely to change. What’s the potential lifespan of its resources, and could this depress oil prices?Recently, Bernstein Research’s Bob Brackett led an effort to define the Permian’s inventory—an amount the analysts termed “truly hard to fathom…but we tried.” The basin hosts multiple targets, but the key—or at least a critical key—is how many will work in various locations. The analysts looked at two cases: one where all horizons work, and one where just one horizon works at each location.In the first hypothetical case, every layer works at every point in the basin, with the result of “near-infinite inventory.” In the second case, only one layer works at every point in the basin, and the Permian is a “one-shot-on-goal” play, making it more akin to the Eagle Ford, according to the report.
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