As Kimmeridge has experienced first-hand, the Permian Basin presents a tremendous opportunity for operators as they develop its many intervals and release production onto the market. But what does this mean for the commodity price and what are the implications for those looking to make future investments in the energy space?

In this research note, we examine a similar revolution in the gas market, where second-generation plays like the Marcellus and Utica displaced an earlier wave of unconventional assets at the front end of the cost curve, and how these dynamics are replicating themselves across oil.