(KWES) - OPEC made a big decision today, deciding to cut back their oil output. It's the first time in eight years they've actually cut production.
The Permian Basin continues to be the most productive region in the entire country right now. If all goes as planned, nations outside of OPEC expect to push out an additional 600,000 barrels of oil per day.
The impact was felt almost immediately, soon after OPEC made the decision to cut back their oil output crude oil prices went up about $4.
"I think for everybody out here it means cautious optimism," said Vice President of the Permian Basin Petroleum Association (PBPA), Stephen Robertson. "It's wonderful that they've reached this agreement. Obviously it's a lot better that they got out of this meeting having reached an agreement versus coming out and saying, 'We haven't agreed to anything.'"
Robertson said keeping an eye on oil prices the next seven days will tell us how big of an impact this agreement will make. If that number continues to rise, we could see workers back in the field and more active rigs.
"The main driving factor for people out here is what is the actual value that they're getting for their production," said Robertson. "If the market continues to show an increased value for crude oil so the prices of crude continue to go up then people out here will be able to get more active."
PBPA said feeling a difference in the Permian Basin will depend on a few key points:
If the countries actually stick to their agreement and for how long
Oil prices will have to be steady between $60-$75
Other countries outside of OPEC have to make up the 600,000 barrels per day cut back
PBPA said if all of this happens it's possible we'll see an under-supply of oil. There's no telling how soon we can feel these impacts.