With every eye on Midland/Odessa, we thought it useful to publish here a few facts about the oilfield equipment and service market in the Permian Basin, and the role the Permian is now playing relative to the rest of US land and, in fact, the global oilfield.
First, the Permian Basin over time. In the boom year of 2014, $30B was spent on oilfield equipment and service in the Permian. In 2018, that number will hit $45B, which is an all time record:
Permian Basin Oilfield Market (Billions)
Second, the Permian Basin versus the US land oilfield equipment and service market. The Permian is about 40% of the entire US land market… and growing:
Third, the Permian Basin versus the global oilfield equipment and service market. The Permian is almost 20% of the entire world’s oilfield spending, which includes services not even used in West Texas, such as massive offshore drillships, subsea installations, FPSOs, helicopters, supply vessels, and LWD:
It was always there; we just didn’t know how to get it out of the ground economically. But best of all, the oil is a half day’s drive from the global headquarters of most oil companies, sits smack in the middle of the world’s largest consuming nation, the natives are friendly, and the government’s “take” is light.
We are confident that the Permian will grow from here. How are you investing?