Permian Basin Drilling Inventory Surges, Driven by Deep-Zone Potential and Cost Reductions

New report estimates the region holds around 55,000 economically viable drilling locations with oil prices below $50 per barrel.

Apr. 15, 2026 at 11:36pm

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A photorealistic studio still life featuring a polished steel oil derrick model, geological survey maps, and a digital display, conceptually representing the technological advancements and strategic planning fueling the Permian Basin's growth.A sophisticated studio still life captures the technical sophistication and strategic vision driving the Permian Basin's continued oil and gas expansion.Midland Today

A new report from Enverus Intelligence Research finds the Permian Basin has about 55,000 new drilling locations with oil prices at $50 or below, representing a 10% year-over-year growth. This expansion is driven by high-quality resource expansion and continued cost reductions, with emerging deep zones like the Barnett-Woodford and Wolfcamp D accounting for over 60% of the incremental resource.

Why it matters

The Permian Basin's growing drilling inventory highlights the region's continued importance as a major oil and gas producing area in the United States. The expansion of viable locations, even at lower oil prices, signals the basin's resilience and the industry's ability to adapt through technological advancements and cost efficiencies.

The details

The Enverus Intelligence Research report, 'Permian Basin Play Fundamentals: The Intervals Keep Coming,' estimates the Permian Basin holds around 55,000 economically viable drilling locations with oil prices below $50 per barrel. This represents a 10% year-over-year growth, driven by high-quality resource expansion and continued cost reductions. The report also notes that total undeveloped inventory approaches 100,000 locations when geologically viable resource is included, with more than 60% of this incremental resource concentrated in emerging deep zones like the Barnett-Woodford and Wolfcamp D.

  • The report takes into account the impact of surging oil prices amid the Iran conflict.
  • EIR estimates 2025 well performance from the Barnett-Woodford and Wolfcamp D zones exceeded the Midland average by more than 30%, with breakevens aligning with primary targets in the low $40s per barrel at $800-per-foot well costs.
  • Sagriff told the Reporter-Telegram that public companies are expected to largely remain cautious and hold activity steady through 2026, with gas takeaway capacity being a significant constraint until new long-haul pipelines come online in the back half of 2026 through early 2027.

The players

Enverus Intelligence Research

A subsidiary of Enverus that provides research and analysis on the oil and gas industry.

Stephen Sagriff

The report's author and EIR's director of oil and gas research.

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What they’re saying

“Our latest work on the Permian underscores how interval optionality and cost reductions continue to refresh the basin's runway.”

— Stephen Sagriff, Director of Oil and Gas Research, Enverus Intelligence Research

“While top operators still control much of the highest-quality inventory, emerging deep zones and development sequencing considerations are increasingly important for understanding where economics hold and where risk may rise as activity shifts deeper or returns to maturing areas.”

— Stephen Sagriff, Director of Oil and Gas Research, Enverus Intelligence Research

What’s next

New long-haul pipelines are expected to come online in the back half of 2026 through early 2027, which should help alleviate gas takeaway capacity constraints in the Permian Basin.

The takeaway

The Permian Basin's growing drilling inventory and deep-zone resource potential signal a promising future for oil and gas development in Texas, as the industry continues to adapt through technological advancements and cost efficiencies.