LUBBOCK, Texas, Sept. 6, 2016 /PRNewswire/ -- The moderate price per barrel of oil has not stopped Boron Capital from building the highest-end workforce housing available in Midland for the employees of oil companies. It goes against the grain of traditional man camps that tend to feature cramped living conditions, vinyl wall panels, substitute-wood cabinets, and plastic showers. The Facility, named The Corporate Ranch, offers about twice the amount of space in the common areas, 30 year composition roofs, eight-and-a-half foot ceilings, textured sheetrock walls, real hardwood cabinets, china sinks, fiberglass showers, and similar infrastructure to stick-built housing. The Corporate Ranch is designed to keep employees energized as they work long days in the oil industry.
The Permian Basin is currently considered the lowest-cost oil play in the United States as a result of the depth of the shale combined with cost-cutting innovation to lower production expenses.
Pioneer Natural Resources said it has lowered its production cost by 26 percent since 2015. Devon Energy said their expenses have decreased 40 percent from their peak.
The Permian Basin has 4,000 feet of shales as compared to the Eagle Shale Ford, which has about 300 feet.
According to Scott Scheffield, CEO of Pioneer Natural Resources, "The margin is $19/bbl, and anything above that is profit for us. That's why we're running 17 rigs today. We have a 35-45% return, based on strip pricing," which is currently staying around $45/bbl.
Even with the above-average returns of the Permian, many are expecting oil prices to stay under $70 per barrel until demand increases. As a result, The Corporate Ranch has decided to help companies keep costs down by offering low-cost pricing for their workforces.
"We've stayed fully occupied since opening, and have the demand to maintain current rates, but as an effort to show our commitment to the local companies, we have adjusted our prices to do our small part to support the oil industry in the Permian," said Blake Templeton, owner of The Corporate Ranch.
In a recent publication, the Consulting firm Wood Mackenzie projected that break-even costs have decreased to $37 at Wolfcamp and Bone Spring in the Permian.
"We feel that with the momentum the Permian has to be at the top of the oil industry in the United States, we are making a good investment by furthering that momentum with our budget-friendly housing, and we look forward to serving the companies here in Midland," Templeton said.
Boron Capital is a private real estate investment firm based in Mesquite, NV that analyzes conditions affecting the economy and investments. More information about Boron Capital can be found at www.BoronCap.com.
CONTACT: Julie Templeton, (806) 722-4903 or Email
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SOURCE Boron Capital