Even with today’s low oil prices, producers are still finding places where they can profitably drill. In Oklahoma and West Texas, notes The Wall Street Journal, some companies are still managing to thrive in today’s struggling oil economy. One area of Oklahoma known as the Stack, for example, is still producing solid returns.
While output in states like North Dakota and Pennsylvania remains sluggish, things are looking brighter in Oklahoma and Texas. Some wells in Oklahoma and the Permian Basin are racking up 30% returns based on oil priced at $45 a barrel.
A few premium wells are generating even greater profits. As US oil futures approach $50 a barrel, some energy companies say they’re planning to step up production in lower-cost areas. Operators in the Permian are now pumping more than 2 million barrels of oil per day.
