Exploring the Permian Basin
The Permian Basin is one of the most prolific oil and natural gas producing regions in the United States. Spanning parts of West Texas and southeastern New Mexico, it has become a focal point for energy production and economic growth. Understanding the Permian Basin’s significance requires a deep dive into its history, geology, economic impact, and future prospects.
The Geology of the Permian Basin
Formation and Structure
The geological structure of the Permian Basin is characterized by thick sequences of sedimentary rocks, primarily limestone, sandstone, and shale. These layers have been subjected to various geological processes over millions of years, resulting in the formation of numerous oil and gas traps. According to a study by the U.S. Geological Survey, the basin’s geology is a key factor in its productivity, as it contains multiple stacked reservoirs that can be tapped simultaneously.
The basin itself is a complex structure comprising several smaller sub-basins, including the Midland Basin, Delaware Basin, and Central Basin Platform.
Resource Potential
The Permian Basin is renowned for its vast reserves of oil and natural gas. It is estimated to contain over 20 billion barrels of recoverable oil, making it one of the largest oil fields in the world. Advances in drilling technology, such as hydraulic fracturing and horizontal drilling, have unlocked previously inaccessible reserves, significantly boosting production levels. Research from the Energy Information Administration indicates that these technologies have increased production rates by over 50% in recent years.
The region’s resource potential is not limited to conventional oil and gas. The Permian Basin also holds significant quantities of unconventional resources, including shale oil and tight gas. These resources have become increasingly important as energy companies seek to diversify their portfolios and reduce reliance on traditional oil fields.
Oilfield Services Factoring
As new and small oilfield service companies begin to service the Permian’s increased oil and gas activity, the need for unconventional financing increases. Banks are typically confined to lending to more established companies with years of profitability and strong financials. Small and growing businesses will find they need the services of a good oilfield factoring company.
Oilfield services factoring (also referred to as accounts receivable financing) is ideal for growing oilfield businesses in the booming Midland – Odessa area. Oilfield factoring allows a company to avoid long delays in collecting accounts receivable from their customers. The upsides are improved cash flow, little or no debt, and sustained growth.
Factoring companies in Texas, Oklahoma and other oilfield states are familiar with the needs of cash hungry businesses. With rising oil prices, demand for oilfield factoring services increases as cash flow crunches increase too. Businesses need cash to fuel the growth in their oilfield business and they turn to factoring companies.
Factoring companies fund invoices so oilfield businesses don’t have to wait to collect receivables. Usually, invoices can be converted to cash within 24 to 48 hours after it’s been generated. As long as the work or product has been delivered to the customer, the business can sell the fresh invoice to the factoring company.
Mazon Associates Factoring
Mazon Associates is a Dallas factoring company that serves many industries including staffing, manufacturing, business services and oilfield services. The friendly folks at Mazon Associates are professional and take an interest in each of their clients. To discuss your oil and gas factoring needs, please call Lisa Hultz of Mazon Associates at 800-442-2740. Lisa is the sales and marketing representative for Mazon Associates.
