Exxon, Chevron Eye Major Boost In Permian Basin Oil Production

Earlier this month, the Energy Information Administration reported that oil output in the Permian shale play had hit a record, and it was going to continue growing. And now, the two biggest Permian operators have revealed plans for significant production growth. Exxon and Chevron both said within the past week that they had plans for a substantial ramp-up in Permian oil production during the release of their financial reports for 2021. Exxon eyes an increase of 25 percent. Chevron, although a little more modest, still expects to boost output in the start shale play by 10 percent.

According to Bloomberg, this is a clear indication that the U.S. shale industry is back into growth mode after two years of strict discipline. Whether the increase of oil production in the Permian would be sufficient to weigh on global oil prices, however, is another matter.

Crude oil output at the Permian hit 4.92 million bpd in December, according to the Energy Information Administration, which forecast that it would expand further to 4.996 million bpd in January. The February forecast of the authority was for output of close to 5.1 million barrels daily.

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Source: OilPrice