Texas' Permian Basin Surges as Energy Powerhouse


Crude oil production in Texas' Permian Basin is expected to increase to an estimated 2.4 million barrels per day this month, according to estimates from the U.S. Energy Information Administration.

The EIA’s Drilling Productivity Report notes that between January 2016 and March 2017, oil production in the Permian Basin increased in all but three months, even as domestic crude oil prices fell.

As production in other regions fell throughout most of 2015 and 2016, the Permian provided a growing share of U.S. crude oil production.

"With rising oil prices over the past year, the Permian continues to be attractive to drillers, as reflected in rising rig counts.," the EIA notes.

Just a few weeks ago, the number of rigs in the Permian Basin approached 350 -- or about 40 percent of oil and gas rigs operating in the United States.

The Permian rig count reached as high as 568 in late 2014 before falling to a low of 134 in spring 2016, according to the EIA.

 


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