GlobalData: Permian Basin shale production to remain strong
Published by Elizabeth Corner,
Senior Editor
World Pipelines,
The Permian Basin is the largest oil-producing shale play in the US. Chiefly located in Texas, it benefits from the dense network of oil and gas pipelines in the state as well as access to downstream and export infrastructure along the Gulf Coast. Global oil demand has been on the rise after the COVID-19 pandemic.
According to GlobalData, crude oil production in the Permian Basin was 5.5 million bpd in March 2024. Meanwhile, natural gas production in this play was 23.1 billion ft3/d during the same month.
Europe’s strategic shift away from Russian energy exports has resulted in key changes to the global energy supplies. This is anticipated to benefit the US shale oil and gas drillers as well as LNG producers that are positioned to benefit from these evolving supply chain dynamics.
The US Presidential election looms in late 2024 amid high inflation concerns. The presidential nominees are therefore unlikely to pledge any new regulatory measures on shale drilling. This could bode well for the outlook for unconventional resource development in the country.
The consolidations taking place through M&A activity are set to strengthen the production in the Permian Basin in the long term. In the short term, permit activity in the shale play grew marginally by 1% for the first two quarters of 2024 as compared with the same period in 2023, indicating flat growth in output.
ExxonMobil’s acquisition of Pioneer Natural Resources was the biggest deal in the Permian Basin shale play between 2021 and 2024. The US$64.5 billion deal was announced in the 4Q23. Following its conclusion in June 2024, ExxonMobil has emerged as the new leader in the Permian Basin shale play, surpassing competitors such as Occidental and Chevron. Detailed analysis of crude oil and natural gas appraisal and production activities in the Permian Basin in the US can be found in GlobalData’s new MAR report, ‘Permian Basin in the US, 2024’.
Read the article online at: https://www.worldpipelines.com/special-reports/11072024/globaldata-permian-basin-shale-production-to-remain-strong/
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