According to a new outlook by IHS Markit, oil production in the Permian basin is projected to rise nearly 3 MMbpd by 2023—a level of growth exceeding most recent estimates. What the report describes as a “stunning” level of growth will comprise more than 60% of net global production growth during that timeframe.
Total oil production in the Permian will be 5.4 MMbpd in 2023, more than the total production of any OPEC country other than Saudi Arabia. Nearly 41,000 new wells and $308 billion in upstream spending between 2018-2023 will drive that growth.
Production of both natural gas and natural gas liquids (NGLs) in the Permian are also expected to double during this period, reaching 15 Bcfd and 1.7 MMbpd, respectively.
“In the past 24 months, production from just this one region—the Permian—has grown far more than any other entire country in world,” said Daniel Yergin, vice chairman, IHS Markit. “Add an additional 3 MMbpd 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 new IHS Markit Permian production outlook draws on information from the company’s proprietary Performance Evaluator database—which includes detailed information of more than one million wells globally—along with the combined analysis of IHS Markit experts covering global crude markets, North American gas, midstream and infrastructure, costs, natural gas liquids and company research.
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