Companies are clamoring for a bigger piece of the prolific oil field that has lifted U.S. crude production to records. Chevron and Occidental Petroleum, in vying for Anadarko Petroleum, are fighting to control more of the Permian Basin, the chief engine of the U.S. shale boom.
As The Wall Street Journal reports, production from the region, which spans more than 75,000 square miles of West Texas and New Mexico, has more than doubled in recent years and makes up about one-third of total U.S. crude output—a portion of which comes to Louisiana for refining and shipping, according to the Energy Information Administration. Â
Once part of a large body of water that existed more than 250 million years ago, the basin is composed of layers of oil-bearing rock. Companies can now tap the various layers deep underground from a single spot on the surface with horizontal drilling and hydraulic fracturing, making the basin the least expensive place in the U.S. to produce oil via fracking.
The fight for Anadarko could start a broader consolidation in the Permian. Most top drilling locations in the Permian are believed to be taken, experts say, so companies seeking to strengthen their footholds will look to buy rivals. Read the full story. Â
