A slowdown in the Permian

摘要

Although the Permian Basin still dominates US land drilling and will continue to do so in the near future, the pace of growth in this region has slowed significantly since late 2018. While it was infrastructure that constrained activity last year, this time it's uncertainty in commodity pricing and investor sentiment that appear to be the main drivers for operators' pullback in capital spending. In turn, this reduction in activity has flooded the market with available rigs, putting tremendous pressure on contractors' utilization and dayrates.