Oil production in Permian basin slated to grow by 53,000 barrels a day next month
Oil production in the Permian Basin could rise by 53,000 barrels a day by next month, the Energy Department said Tuesday, and analysts expect the flurry of West Texas land deals to keep drillers pumping oil.High dollar investments by producers will require production to get a return on their investment and there is great incentive to do it as quick as feasible. The oil field service companies have also started hiring again in the region.
That’s the largest monthly increase in the region since January 2016, according to data compiled by the Energy Information Administration. The EIA’s first shale oil forecast of the year comes after U.S. shale drillers dispatched scores of rigs to the region and companies like Exxon Mobil Corp. and Noble Energy announced multibillion-dollar land grabs there.