June 13, 2018
Permian Output Just Getting Started, with Oil, Natural Gas, Liquids Seen More than Doubling by 2023. “West Texas and southeastern New Mexico crude output, already a factor in global supply growth, is likely to increase by nearly 3 million b/d between 2017 and 2023, a level of growth exceeding most recent estimates and up 116% over six years. Nearly 41,000 new wells and $308 billion in upstream spending between 2018 and 2023 are forecast to drive the gains, a “stunning” figure that would comprise more than 60% of net global output growth over the timeframe, researchers said. “In the past 24 months, production from just this one region – the Permian – has grown far more than any other entire country in the world,” said IHS Markit Chairman Daniel Yergin. “Add an additional 3 million b/d by 2023 – more than the total present-day production of Kuwait – and you have a level of production that exceeds the current production of every OPEC nation except for Saudi Arabia.” The Permian production outlook draws on information from the company’s proprietary Performance Evaluator database, which includes information of more than one million global wells.” More at Natural Gas Intel.