The Permian has weathered the downturn in prices better than other shale plays, and prospects there are improving even more with prices firming after OPEC's decision to cut output.
Rystad cautioned that bringing these wells online will depend on the right price signals, but in its analysis the vast majority of DUC wells are economical at as low as $28 per barrel.
Hedge fund sentiment in the oil markets has turned considerably bearish as of late. While it may be premature to say prices have already peaked for the year, a sustained bull run for the rest of 2016 appears less and less likely.
Despite oil prices returning to the $50 level, expectations of a sudden surge of new oil production in the U.S. are unfounded.
Widespread hedging among U.S. producers and OPEC increasing its volumes even as some members deal with unexpected supply cuts have the potential to cap prices, or possibly bring about another leg downward.
With prices having rallied and with expectations for a stronger market next year, will drilled but uncompleted wells (DUCs) be able to stabilize U.S. shale output or bring about another wave of supply online?