Permian Basin Production to Recover Completely by 2022: Report

Steady production growth and a positive investment outlook is expected to restore production of the Permian Basin to pre-pandemic levels by next year, according to a latest report by GlobalData.

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Production in the Permian Basin, the largest oil-producing region in U.S., is forecasted to steadily rise.(Source: Shutterstock)

Production of crude oil and natural gas from the Permian Basin is likely to exceed pre-pandemic levels by 2022 amid market recovery, GlobalData said in their latest report.

The Permian Basin, which is the most sought-after basin in the U.S., was the most affected play in the country during the COVID-19 pandemic, the research firm said. However, Permian production is finally expected to return pre-pandemic production levels, clearly reflecting recovery of the U.S. shale industry.

Gradual recovery in the production has been observed in the basin, despite lagged activities during February amid winter storms. The report shows the Permian Basin is currently producing about 4.6 MMbbl/d and is projected to reach over 4.9 MMbbl/d of crude oil production by mid-2022, which surpasses pre-pandemic production of 4.8 MMbbl/d in February 2020.

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Faiza Rizvi

Faiza Rizvi is a senior associate editor of Business & ESG for Hart Energy's editorial department, with a strong focus on E&P Plus and HartEnergy.com. She has been covering all facets of the U.S. and international energy industry for over 5 years.