Oil and gas companies in the Permian Basin are planning to ramp up production of fossil fuels. This is despite a slight dip in crude oil production expected this month. Chevron reported record Permian Basin production during the second quarter of 2023. It has an 11% increase compared to the same period last year. The company produced 772,000 barrels of oil equivalent per day (boe/d) during that time. Chevron attributed its success to recent operations and growth in the Permian. This is leading them to plan further investments in the area.
Matador Resources is also increasing its operations in the Permian’s western Delaware sub-basin. The company reported “record” oil and gas production in the second quarter after acquiring Advance Energy Partners. The acquisition included 18,500 acres and 406 horizontal drilling locations. Matador averaged about 130,000 boe/d in the second quarter and expects to increase production. An estimate to 140,000 boe/d by the end of the year.
Although the Energy Information Administration (EIA) predicts a dip in oil production in the Permian Basin, the region is still producing more oil than all other major shale regions combined. The Permian is expected to lead in natural gas production growth, with an estimated increase of 36 million cubic feet per day (cfd) to about 23.4 billion cfd.
The Permian Basin continues to be a hub of activity for the oil and gas industry. New Mexico and Texas, which share the Permian, have the second- and first-highest oil and gas rig counts in the U.S., respectively. The region is also leading in mergers and acquisitions (M&A) among oil and gas companies, with $24 billion in deals during the second quarter.
Despite fluctuations in production and market conditions, oil and gas companies remain committed to expanding operations in the Permian Basin.
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Source: Energy Portal
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