IHS Markit: “stunning” growth in oil production in Permian by 2023
A new report from IHS Markit says crude oil production in the Permian Basin is forecast to reach 5.4 million barrels per day in five years. The report said the Permian Basin will provide 60 percent of the world’s growth in oil production in 2018-23 to rank behind only Russia and Saudi Arabia in production. Raoul LeBlanc of IHS Markit said, “The level of growth – from 0.92 million barrels per day in 2010 to 5.4 million barrels per day in 2023 – is truly stunning.” The region started 2018 at about 2.8 million b/d. Daniel Yergin, vice chairman, added, “In the past 24 months production from just this one region has grown far more than any other entire country in the world.” The Oil & Gas Journal said the growth will come from nearly 41,000 new wells and $308 billion in upstream spending in 2018-23. And production of natural gas and NGLs in the Permian is also forecast to double during this period. Russia and Saudi Arabi currently produce more than 10 million barrels of crude every day.
The Dallas Morning News said these projections are larger than earlier forecasts by the U.S. Energy Information Administration. That agency’s projections showed the Permian Basin peaking at more than four million b/d.
Continuing good news for the western Permian and all the
Delaware Basin from the Pecos river west to Hudspeth county.
ol’ Lawrence in Verhalen