Expected growth slowdown for Permian basin
Permian set for growth slowdown
A range of obstacles will hobble further output increases in the Lower 48’s most productive basin heading into 2023
The Permian basin is inarguably the engine room of US shale, accounting for 60pc of domestic production in 2022. But high inflation, supply chain constraints, a decline in the availability of drilled-but-uncompleted (Duc) wells and limited pipeline capacity are set to limit growth next year. “We are certainly seeing some cost inflation, and [inflation in] the Permian is probably the strongest that we see around the world, into the low double digits year-on-year,” says Mike Wirth, CEO at Chevron. “In other parts of our portfolio, the cost pressures are probably a little bit less and the constraints are not quite as pressing.” Inflation will range from 10–15pc in 2023, according to forecasts f
Also in this section
13 November 2025
The new federal government appears far more supportive of oil and gas than former prime minister Justin Trudeau’s climate-focused administration, but the prospects look better for the latter hydrocarbon
12 November 2025
The November 2025 issue of Petroleum Economist is out now!
10 November 2025
The Russian firm made a significant attempt to expand overseas over the past two decades but is now trying to divest its global operations
10 November 2025
OPEC+ has proven to be astute at bringing back oil production, but mysteries around Chinese buying, missing barrels and oil-on-water have left the group in wait-and-see mode
