The Permian Basin in West Texas and Eastern New Mexico is turning out far more oil than the U.S. government ever estimated.
One report by the Norwegian research firm of Rystad Energy predicts the Permian production will eventually push U.S. crude output even higher.
U.S. oil production likely hit a record of 12.5 million barrels per day in May and should even grow to 13.4 million barrels daily by the end of this year, according to the Rystand study. Next year should see oil supplies hit 14.3 million barrels a day.
“U.S. oil production is already higher than many in the market believe,” says Bjørnar Tonhaugen, Rystad’s head of oil market research.
“Strong growth persists in the Permian Basin on both the New Mexico and the Texas sides,” he said. “Updated production estimates suggest that the Permian Basin surpassed 4.5 million barrels per day in May.”
The U.S. Energy Department has projected that U.S. oil output is currently at a still-record 12.4 million barrels a day, but that the May average was less than 12.3 million barrels daily.
The government estimates the Permian’s current volumes at less than 4.2 million barrels of crude oil a day, well less than Rystad’s analysis.