Goldman Sachs released a research report stating that they believe that we are still early in the Permian Basin oil renaissance. There are multiple sources of upside including downspacing, exploration success finding additional productive zones and technology to improve productivity. "There has been a sharp pick-up in industry activity in the Permian Basin." They expect the improvements that were realized in the Permian Basin in 2010 to continue in 2011.
The research was very good in calling attention to the upside potential of companies doing business in West Texas including the Wolfberry trend. As more attention is drawn to this area, the companies exposed to the Wolfberry trend should outperform.
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