IHS Markit: Permian set output mark in 2017

The Permian basin in West Texas and southeastern New Mexico produced a record of at least 815 million bbl of oil during 2017, which exceeded its previous record of 790 million bbl set in 1973, said IHS Markit.

The Permian basin in West Texas and southeastern New Mexico produced a record of at least 815 million bbl of oil during 2017, which exceeded its previous record of 790 million bbl set in 1973, said IHS Markit.

A final 2017 production number will be available after operators report yearend statistics.

“The magnitude of the rebound in the Permian basin liquids production is unprecedented,” said Reed Olmstead, IHS Markit director of energy research and analysis.

“Not so long ago, many in the industry were saying the Permian was dead…. The Permian basin is on track to add more than 2 million b/d in new production since 2007,” he said.

Permian production is expected to push total US liquids production to a record by yearend 2018.

“We see US production exceeding 10.5 million b/d by the end of 2018,” Olmstead said.

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