Permian on the rebound

Extreme market volatility is subsiding, tempting operators to acquire promising assets and lift production

The Permian basin is rallying after a sluggish year. Oil production is rising and the basin is seeing a sizeable chunk of the shale patch consolidation that has been playing out across the industry over the past year. The recovery is being tempered somewhat by increased discipline among producers and by uncertainty over the future of drilling on federal land. But the fact that production is picking up despite these constraints illustrates the basin’s resilience. The Permian dominates US domestic oil production. And given this status, it is unsurprising that recent M&A—though not all—has been concentrated on the basin. Leading the way, Texas-based independent Pioneer Natural Resources com