Mexico’s role as the #1 producer of potash in the United States.
5. First Commercially Drilled in 1920
On the surface, the Permian Area was covered in grasslands, which were inviting to farmers and ranchers who settled the area. In order to have adequate water supply for crops and livestock, landowners will drill for water, often discovering oil and gas along the way. In 1920, a discovery well was drilled in the Westbrook field of Mitchell County in West Texas. This well was successfully drilled to a depth of 2,498 feet, proving that oil and gas production from the Permian strata was viable.
6. Deep Drilling Came Later
Lack of infrastructure to move oil and gas to distant markets prevented deep drilling early on in the Permian Basin’s production. In 1928, a deep test at Big Lake oil field revealed ample resources at a depth of more than 8000 feet. Still, petroleum companies continued drilling at more economically feasible depths until the appropriate technology came along.
7. It Got Us Through World War II
Some attribute production from the Permian Basin to the Allied victory during World War II. At the time, the Permian Basin was responsible for half of the world’s oil and gas production, helping fuel the tanks, jeeps, ships, and planes the Allies used to win the war.
8. Fracking Has Been Instrumental to Deep Drilling
Over the past decade, drilling activity has boomed along the Permian Basin as hydraulic fracturing has enabled drillers to extract oil and gas from previously unreachable depths. Though a controversial practice, fracking has been key to unlocking deep drilling, greatly boosting local economies. Local land owners can lease or sell mineral rights to companies for a hefty sum, while the area as a whole benefits from increased sales tax revenues and more job opportunities.
9. It’s Been More Resilient in the Oil & Gas Downturn
In 2015, as oil and gas prices and stocks plummeted, things continued looking up for producers in the Permian Basin. The Wall Street Journal cites prolific wells and low costs as the reasons the Basin remains a viable area for production, when production in other shale plays has slowed to a trickle. Despite prices hovering around $40/barrel, companies like Pro Petro have been able to stay alive in a down market, thanks to their hefty investment in the Permian Basin.