Exploration, Production Up; Oil Rebound Continues

Two more signs have appeared to signal a rebound in the oil and gas industry -- exploration and production are up.

The month-over-month U.S. rig count is up 9 percent, outperforming the industry forecast – a yardstick that measures growing confidence.

Among the nation's busiest areas: Texas.

“The primary focus areas are the Permian Basin, which is West Texas, and … an area in Oklahoma  called ‘The STACK’ and ‘The SCOOP,’” said Oilman Charlie Matter, managing partner of Dallas-based Case Energy Partners.

“As interest rates have stayed low and this money is looking for (attractive) return, there’s been a big focus in the Permian Basin,” Matter told NewsRadio 740 KTRH in an interview that aired Thursday.

Investors are fueled by equal parts optimism and cheap money.

“We’re seeing a big transactional trend in specific places like the Permian Basin because of the unique upside,” Matter said.

Confidence in oil and gas has also meant more new jobs each month ... and most of the nation's growth in rig counts in recent months has been here in the Gulf of Mexico region.

The Permian Basin is an oil-rich, 250- by 300-mile area beneath West Texas and the southeastern tip of New Mexico.

The STACK play – named for the Sooner Trend oilfield, Anadarko Basin, and Canadian and Kingfisher counties -- and the South Central Oklahoma Oil Province (SCOOP) are both in Oklahoma’s Anadarko Basin.

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