Enverus estimates the Permian Basin now has about 55,000 drilling locations that break even below $50/bbl, up 10% year-over-year due to improved resource quality and cost reductions. Including all geologically viable zones, total inventory approaches 100,000 locations, with emerging intervals like the Barnett-Woodford driving the next phase of growth.
Oil futures are indicating sustained higher prices through 2026–2027 as markets price in ongoing geopolitical risk and tighter global supply. However, economists caution that history shows oil prices can reverse quickly if demand weakens or disruptions ease.
Oil prices dropped sharply as Iran signaled the Strait of Hormuz will remain open during the ceasefire, removing a major near-term supply disruption risk. Markets rallied on easing geopolitical tensions, though the situation remains fragile with ongoing Israel–Hezbollah tensions and a time-limited truce.
The Trump administration is urging major U.S. oil producers to boost drilling in response to a significant global supply disruption caused by the Iran conflict, which has driven oil prices higher. However, any increase in production is expected to be gradual as companies remain focused on capital discipline and face operational constraints.
Chevron’s Bandit oil discovery in the Gulf of America highlights the continued value of infrastructure-led deepwater exploration, with strong potential for a subsea tie-back development. Despite 145 wells drilled in the dataset, activity remains concentrated among major operators like Shell and Chevron, reflecting a shift toward fewer, higher-quality drilling opportunities.
Tamarack Valley Energy has drilled 39 wells year-to-date in 2026, with the majority of activity concentrated in the Clearwater play, particularly Marten Hills and Nipisi. To support this development, the company is upgrading a Marten-area facility with additional compression (1,883 kW total) and pumping capacity to improve production efficiency and handle increasing volumes.
BTG Energy Corporation has received approval to upgrade its Sylvan Lake gas processing facility, increasing capacity and enhancing operations through a significant compression buildout. The addition of 9 compressors totaling 4,327 kW signals a strategic push to handle higher gas volumes and support growing regional production.
Oil prices held steady as markets balanced supply disruptions from escalating U.S.-Iran tensions with uncertainty around potential peace talks. With up to 2 million barrels per day of Iranian exports at risk and inventories declining, the market remains tight and highly sensitive to further geopolitical developments.
“They should try to conserve energy,” said Andy Walz, Chevron’s (CVX) president of downstream, midstream and chemicals. “We should always be conserving energy, whether it’s your light switch or the miles you drive or what kind of car you buy.”
Firebird Energy II’s WOODFIN development is a 6-well, single-pad horizontal project in the Midland Basin targeting the Spraberry formation with consistent depth and a single-rig execution. Drilling was completed over ~78 days, with facility permitting following ~80 days later, indicating a delayed but predictable surface development cycle.
