Despite expectations of a dip in production in the prolific Permian basin of West Texas and New Mexico, gas and oil companies are continuing to announce investments to ramp up production in the region.
In a recent report on its operations in the second quarter, Chevron, the maker of the Texaco grease and lubricant products, said it saw record production of 772,000 barrels per day of oil equivalent (boe/d) over the period, with this being a year-on-year increase of 11%.
The report says that this motivated the company to make more investments in the region. Mike Wirth, Chevron’s CEO, pointed to it gaining 25,000 acres of productive land in the Permian through its $7.6 billion acquisition of PDC Energy. He was also quoted in the report as saying:
“Strong execution resulted in record Permian Basin production this quarter. Our consistent performance and disciplined use of capital are driving superior value for our shareholders.”
Matador Resources also said it was ramping up its Permian operations after the assets it acquired along with Advance Energy Partners performed better than anticipated, leading to oil and gas production in the second quarter reaching record levels. The company’s CEO, Joseph Foran, said this:
“…has allowed us to increase our production guidance for 2023 and sets us up for an even better 2024.”
The US Energy Information Administration (EIA) expects Permian oil production to be 5.8 million barrels per day next month, which is more than the combined production of the other prominent US shale areas.