12/06/2026 by Daniel Tait
Following soaring crude oil priced during the Iran conflict, oil producers in the Permian Basin are beginning to ramp up production levels.
While the recent push has seen independent oil companies start to add rigs in the oilfield, the new production drive is expected to only boost output by roughly 250,000 barrels per day.
The independent drillers are using an interim strategy that involves working on a backlog of oil wells that can be more easily and quickly brought online, rather than starting new sites.
According to former chair for the Permian Basin Petroleum Association, Kirk Edwards, the drilled but uncompleted (DUC) wells have not been fractured hydraulically to hasten production rates.
The Permian Basin is a vast oil and gas producing region spanning southeastern New Mexico and West Texas. It is the largest oil-producing basin in the United States (US) and accounts for close to half of the total US crude oil output, making it one of the most productive oil and gas regions in North America.
Industry experts state that a key reason for lower oil production growth is changes in the Permian Basin’s operations over the last 10 years.
Oil giants like Chevron, owner of the Texaco lubricant line and Exxon Mobil, have purchased many of the independent businesses that helped to develop shale drilling and are more cautious than smaller companies about increasing production when prices spike.
The supermajors currently control around 70 percent of the premium drilling locations in the oilfield, and while they expect production levels to rise, they can adopt a long-term view on price trends.
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