GlobalData’s latest report, ‘Permian Basin in the US, 2021 – Oil and Gas Shale Market Analysis and Outlook to 2025′ provides a comprehensive review of hydrocarbon appraisal and development in the Permian Basin against the backdrop of the Covid-19 pandemic. The report also provides an outlook for oil and gas production in this play till 2025, along with competitive positioning of major operators.
The Permian Basin, located in the states of Texas and New Mexico, is the largest oil-producing region in the United States. In 2019, the basin averaged more than 4.3 million barrels of oil per day (mmbd), peaking at 4.7 million in December 2019. During 2020, oil production averaged more than 4.8 mmbd from January to March before the pandemic-led demand crash that resulted in a production drop to an average of 4.3 mmbd from April to December 2020.
The lowest level of crude and condensate production was reached in September 2020, at 4.2 mmbd or 12.5% below March 2020 levels. While natural gas production reached the lowest volumes of 14.8 billion cubic feet per day (bcfd) in May 2020, which was a 14% drop compared to March 2020.
Gradual recovery in the production has been observed in the basin, despite lagged activities during February 2021 amid winter storms. Production in the Permian Basin is forecasted to steadily rise and reach more than 4,900 thousand barrels per day (mbd) and 18,000 million cubic feet per day (mmcfd) of crude oil and natural gas production, respectively, by mid-2022. By 2025, both the commodities are forecasted to recover, exceeding their respective level reached in 2020.
According to GlobalData, Lea and Eddy in New Mexico and Reeves, Love, Midland, Martin, Howard, Culberson, Upton, Ward in Texas are the leading counties of the Permian Basin. The top crude oil producers include Pioneer Natural Resources , Occidental Petroleum , XTO Energy (Exxon Mobil ) and Chevron , while Diamondback , Cimarex, Apache and EOG Resources have prominent natural gas production in the basin.