$9.5 Billion Purchase by Concho Is Latest Sign of West Texas Oil Boom
Supported by Energy & Environment $9.5 Billion Purchase by Concho Is Latest Sign of West Texas Oil Boom Photo A rig in West Texas, where production is threatening to outstrip the pipeline capacity. The Concho Resources purchase of RSP Permian comes at a precarious moment. Credit James Durbin/Midland Reporter-Telegram, via Associated Press HOUSTON — Two Texas oil companies joined forces on Wednesday in the biggest deal yet in the Southwestern oil patch, one that should add momentum to the rush to produce more oil as prices rise.
The creation of a shale-oil colossus comes at a precarious moment, when production in the region is expanding so fast that pipeline construction is barely keeping up. That may cap the potential of the deal, at least over the next year or two, to get oil to the market profitably.
The move by Concho Resources to purchase RSP Permian for $9.5 billion will make it the biggest shale oil and natural gas producer in the Permian Basin, the oil-rich area. With 27 ri..