We all know that the Permian is a big deal, but just how big a deal is it?

When it comes to just US land spending on oilfield equipment and services, back in 2014 the Permian Basin represented 21% of all US spending on drilling, completing and producing wells.  Most Permian wells were still drilled vertically, and those vertical wells simply didn’t generate a lot of demand for drilling and completion services.  

But then two events happened in parallel:  The Permian discovered horizontal completions AND the Permian’s economics generally beat every other basin’s economics.  Like a magnet attracting iron shavings, the Permian attracted investor dollars at the expense of all other basins:

We’ve assumed that improving oilfield economics in other basins will flatten the curve in 2021; but, if instead the trend continues next year like it has been going for the last 6, the Permian’s share of US land spending will rise to 45% in 2021!

So which basin is suffering the most loss as a result of Permian’s gain?  

Here you go:

Readers should note that BOTH regions were of equal size in 2014 – 21% of US spending went to each region. But the MidContinent just doesn’t have the economic attractiveness of the Permian. Sorry Oklahoma… you’re (NOT) doin’ fine.