Energy Information Administration predicts record Permian oil and gas production in August

Containing nearly half of the country’s drilling rigs, the Permian Basin has steadily increased its oil and natural gas production — with a pandemic-related pause in 2020 — since the unconventional shale revolution began there. over ten years ago.

Today, the Energy Information Administration predicts steady growth will send Permian Basin output to record highs in August. In its productivity report, the EIA said oil production would increase by 78,000 barrels per day to a record 5.554 million barrels per day in August. At the same time, natural gas production is expected to increase by 166 million cubic feet per day to more than 20.54 million cubic feet per day.

“The Permian is the No. 1 hydrocarbon-producing region in the United States,” said a statement provided to The Reporter-Telegram via email. “It has multiple producing formations stacked with significant hydrocarbon resources, developed infrastructure and access to well service providers that will help increase Permian production down the road.”

The release continued, “We have always expected U.S. crude oil production to increase to balance demand for gasoline and other petroleum products. Record Permian production will be a key driver of domestic oil production growth, and we expect increased production to help ease some of the pressures that have contributed to above-average gasoline prices.

Ben Shepperd, president of the Permian Basin Petroleum Association, told the Reporter-Telegram via email that while inflation is currently high and has the potential to slow the economy significantly, “I think global demand will continue to grow. Supply will also increase, but not as fast, especially with a hostile and unpredictable regulatory environment.

Ed Longanecker, president of the Texas Independent Producers and Royalty Owners Association, commented, “Permian operators continue to respond to favorable commodity prices and the call to increase production to meet growing global demand and growing demand. limited supply, which shows minimal signs of easing given the current geopolitical situation. environment.”

In comments to the Reporter-Telegram via email, Longanecker added that private operators are likely to continue to be a key driver of growth in the Permian Basin, with many public entities continuing to maintain capital discipline.

“The industry faces a number of challenges that could dampen activity and disproportionately impact small private operators, including supply chain bottlenecks, labor shortages and an adversarial federal political environment,” he wrote.

“Policy makers in Washington, DC, should recognize that more domestic production is needed and an end to the vilification of the industry most vital to ensuring our energy security,” he concluded.