US Permian Basin Set to Produce Record Oil Output
The EIA’s Drilling Productivity Report revealed that the region would be adding 60,000 barrels per day, raising its crude production to 5.413mbpd.
“Total oil production in the Lower 48 is seen adding 132,000 bpd from this month to next, to reach a total of 9.115mbpd. All plays will see additions in output in October and none will see a decline, with only Haynesville’s output rate remaining unchanged” the EIA noted, according to OilPrice.
US total production was also stated to have hit its highest since April 2020, when the pandemic began its worst and is a significant recovery from the collapse after the pandemic. However, oil firms are reportedly hesitant to invest in growth, amid pessimism arising from constraints such as equipment and worker shortages and inflationary pressures on the US economy.
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Despite this, data shows that output is still increasing as demand is robust both in and out of the US.
The Chief Executive Office of Pioneer Natural Resources was skeptical according to the report from Oil Price saying that oil output in the US might disappoint in 2023 as growth may lag this year’s levels. He projected that US oil production would add 500,000 barrels per day in 2022 but production gains in 2023 may be lower.
The EIA on the other hand forecasted 800,000bpd production growth for 2023. It projected that US oil production would rise to a high of 12.6mbpd in 2023, surpassing 2019’s record of 12.3mbpd.
