Permian still primed for growth
Expansion prospects for the dominant oil shale basin remain in 2023
“The notion that somehow the Permian cannot grow, we do not believe is true. As long as WTI prices remain above c.$65/bl, it can and will grow. You are not going to hit the sweet spot exhaustion point until you get to the second half of the 2020s.” So says Raoul LeBlanc, vice-president, energy, at intelligence firm S&P Global Commodity Insights. And other analysts agree. Research firm Enverus forecasts Permian production rising by 400,000bl/d year-on-year— with associated gas up by 1.6bn ft³/d (45.3mn m³/d)—in 2023, while consultancy Wood Mackenzie expects the West Texas basin to account for more than 70pc of its almost 700,000bl/d annual increase in US onshore production, or c.490,000bl
Also in this section
24 April 2024
But even planned exploration activity is unlikely to reverse declining output from mature fields
23 April 2024
Cheaper Russian barrels and lower overall crude prices have helped cut key oil consumer’s import bills in election year
22 April 2024
Pursuing three different goals as part of the same package may mean achieving none of them
22 April 2024
Beijing’s renewed targeting of NOC management could threaten investment