No. of Recommendations: 3
US Oil Firms Warn of Permian Slowdown. US oil executives have warned the industry that growth in oil production from the prolific US Permian Basin will slow by at least 25% this year, rising by some 250,000 b/d after a 380,000 b/d increase in 2024, playing down the impact of ‘drill baby drill’ policies.
Am I missing something or is this headline actually saying "another year of record high production" ?
Exactly. Most journalists are not mathematicians. They take the following quote and they write the wrong headline:
production is expected to rise in 2025 by about 250,000 barrels per day (bpd) to 300,000 bpd from the shale formation spread across Texas and New Mexico, down from last year's 380,000-bpd increase. That forecast aligns with the U.S. Energy Information Administration's projection of a 300,000-bpd rise. Total Permian output hit 6.3 million bpd last year, accounting for about half of total U.S. output.
In other words, production was 5.92m barrels 2 years ago, and then 6.3m barrels last year, up 6.4%. And this year, it's expect to go up by another 250,000 barrels, to 6.55m barrels, up 4.0%. So yes, growth is slowing a bit, but it is still growth. This is not a Permian Slowdown, this ia Permian Speedup. It's like the car that went from 100 km/h to 115 km/h 2 minutes ago, and then went from 115 km/h to 125 km/h last minute.
It's already a very high rate of production, and just maintaining that level would be a success. Increasing it, and then increasing it further, is not bad news.
dtb
