In its latest Drilling Productivity Report, the Energy Information Administration (EIA) has predicted that crude oil production in the prolific Permian Basin will increase by 66,000 barrels per day (bpd) in October to reach a new record high of 5.413 million bpd, which is more than any country outside the top-three producers (the US, Russia, and Saudi Arabia).
Despite a wariness among operators about growing production, driven partly by inflationary price increases and shortages of workers and equipment, overall US oil production continues to ratchet up in response to strong demand, both from within the US and further afield. Indeed, the total US production in June this year reached 11.8 million bpd, the highest value since April 2020, when the industry was beginning to grapple with the effects of the COVID-19 pandemic.
The IEA forecasts that US crude oil production will reach a new record high of 12.6 million bpd next year, but Reuters reports Pioneer Natural Resources CEO Scott Sheffield as saying that growth is likely to be disappointing due to infrastructure constraints, inflation and issues with the supply chain. Nevertheless, companies like ExxonMobil and BP continue to see the Permian Basin as a prominent part of their operations.
Of course, BP and ExxonMobil are not just producers of crude oil—they also make many derived products like Castrol Perfecto and Mobil Polyrex. Here at TrAchem, we stock a wide range of such products, so get in touch with our helpful team to learn more.