The Permian Basin on the rise to becoming the third-largest oil producing region in the world.

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The Permian Basin on the rise to becoming the third-largest oil producing region in the world.

Woman standing in front of pump jack

The Permian Basin and New Mexico are producing the nation’s biggest shale oil in the region. In just a few years, they could be pumping enough crude to be the third-largest region in the world under Russia and Saudi Arabia.

 

The drillers in the Permian Basin use progressive methods to break down oil and natural gas from rock formations. They use a process known as hydraulic fracturing that crushes the shale rock with water, sand, and chemicals to restore the oil and gas through horizontal wells.

 

Through the progressive drilling methods, the region is estimated to double between now and 2023. “IHS Markit believes the Permian will unilaterally support an increase in US crude production of more than 500,000 barrels per day in 2017 and will produce a total liquids output of more than 4 million barrels per day by 2021.”

 

As of today, the Permian Basin is already producing more oil than nations like Kuwait, Nigeria, and Mexico. So, if the IHS Markit estimates pan out, the PB would jump todays output from Canada, China, and Iraq.

 

However, if the IHS Markit does become reality, it would be expensive. The Permian Basin frackers would have to drill about 40,000 new wells and invests over $300 billion through 2023.

 

Even with all the money being invested, the biggest hurdle will be building enough infrastructure to the Permian Basin. The lack of pipeline space to move the crude has led to steep discounts for the region’s crude. That situation illustrates a mismatch between frackers and pipeline, storage and logistics companies, according to Jim Burkhard, head of

The Permian Basin is currently the most exciting region for oil and gas companies and workers and Agri-Empresa is a leading oil and gas company in the area. Be sure to follow our blog and website to keep up with current energy trends and statistics.

 

Source:

https://ihsmarkit.com/industry/energy.html 

https://www.cnbc.com/2018/06/13/permian-will-soon-pump-enough-oil-to-be-opecs-2nd-biggest-producer.html

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