Permian production will push U.S. to new record liquids production by end of 2018 – IHS Markit

IHS Markit released a new report today. IHS Markit said that the Permian Basin reached a new 2017 oil-production record of 815 million barrels – this does not include the remaining days left in 2017. The old 1973 record held at 790 million barrels for 44-years.

Permian Basin Hits Second Production Peak in 2017, Beating 1973 by 25 Million Barrels

“The magnitude of the rebound in Permian Basin liquids production is unprecedented,” said Reed Olmstead, director, energy research and analysis at IHS Markit. “Not so long ago, many in the industry were saying the Permian was dead, but the Phoenix has again risen from the ashes and is soaring to new heights. The Permian Basin is on track to add more than two million barrels per day in new production since 2007, and after the final-year production count is in for 2017, we will see the previous all-time liquids-production peak of 2.16 million barrels per day during 1973 surpassed by a significant margin, with total Permian volumes at roughly 2.75 million barrels per day. In turn, this surge in Permian production is projected to push total U.S. liquids production to a new all-time high by the end of 2018. We see U.S. production exceeding 10.5 million barrels per day by the end of 2018.”

According to the IHS Markit U.S. Energy Well and Production database, peak annual liquids production for the Permian Basin during 1973 was nearly 790 million, an average of nearly 66 million barrels of oil per month. Peak-month liquids production in the Permian during 1973 occurred in September, with slightly more than 68 million barrels produced.

By mid-year 2017, average monthly production already exceeded the best month of Permian production during the former peak year of 1973. For 2017 year-to-date through July, Permian liquids production exceeded 484 million barrels, or an average of slightly more than 69 million barrels per month.

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