24/05/2022 by Katie
The United States’ prolific Permian Delaware Basin looks set to produce a record amount of hydrocarbons this year, with it predicted to average 5.7 million barrels of oil equivalent per day (boe/d) this year.
The figure is based on research from Rystad Energy, which surveyed some 61 Permian operators. For their forecast, Rystad assumed that prices would remain relatively high this year, at an average of $106 per barrel, before declining to $70 per barrel next year and ultimately reaching around $50 per barrel as the middle of the decade approaches.
A Vice President at Rystad Energy, Veronika Meyer, said about the research.
“The Permian Delaware has emerged as the top oil-producing play in the US shale patch, outpacing growth in other oil-rich regions. With oil prices expected to remain elevated, 2022 promises to be another outstanding year for production growth in the region.”
Investment in the region is also expected to surge by 40%, with oil majors like Chevron, ConocoPhillips, ExxonMobil and BP reversing the cuts of previous years as high prices spur them into investing some $7.4 billion in the region. Private operators are also expected to invest heavily in the Permian, with their share rising to almost $9 billion compared with $5.8 billion last year.
Oil majors like BP, Chevron and Castrol are not limited to oil production, of course. They also make many of the lubricant products that our helpful team at TrAchem can help you to procure, such as the Mobil DTE range of hydraulic oils and the Castrol Aircol compressor fluid.
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