Permian Output to Continue Growing Despite Supply Chain Constraints

While producers continue facing inflation and supply chain woes, the Permian Basin is on track to account for significant production growth.

Permian Output to Continue Growing Despite Supply Chain Constraints

Rystad forecasts the Permian Basin to account for about half of all U.S. oil output in 2023. (Source: Shutterstock.com)

As demand for oil continues to surge on historically tight supply, Norwegian research firm Rystad Energy expects oil production in the Permian Basin to grow by almost 1 million bbl/d this year despite inflation worries, labor shortages and supply chain constraints.

Additionally, total output of the basin this year will beat Iraq’s crude oil production and the combined output of Norway and Brazil, new research by Rystad Energy shows. While the Permian Basin has been producing more oil per year than Iraq since 2020, the gap between the two countries will widen in the next two years with Permian production expected to average around 6.5 million bbl/d in 2023.

According to Energy Information Administration’s (EIA) most recent outlook, oil production in the Permian region will average about 5.3 million b/d in 2022. Since last year, the Permian has added about 114 oil-directed rigs, the EIA said.

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Faiza Rizvi

Faiza Rizvi is a senior editor of 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.