Oil production in the prolific Permian Basin hit a new record of 815m barrels in 2017 according to recent research from IHS Markit, a leading information provider.
The new high eclipses the existing 44-year-old record of 790 million barrels that was set in 1973 when conventional oil production was the norm in the region.
HIS Markit’s director of energy research and analysis, Reed Olmstead, said about the research:
“The magnitude of the rebound in Permian Basin liquids production is unprecedented. 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.”
Olmstead also added that given the strong growth in the Permian Basin, total US oil production should reach a new record high of 10.5m barrels per day by 2018.
Following the peak in 1973, oil production gradually declined in the Permian Basin as wells depleted, but the introduction of unconventional drilling and completion technology in the 2000s has clearly brought about a renewal. Frackers also continue to innovate in order to optimize their unit cost and return metrics.
ExxonMobil, which also supplies lubricants for Mobil UK distributors, may have been noticeably late in joining the shale revolution, but it now seems to be applying its experiences from its 7-mile drilling operation for the Sakhalin joint venture in Russia. It emerged in November 2017 that the company’s horizontal wells in the Permian Basin were approaching 2.5 miles long.