2023 was a big year for the U.S. oil and natural gas business. The country, Oil-rich Permian Basin, remained the world’s largest oil producer for the sixth straight year, and a wave of consolidation swept through the industry. A good chunk of that merger and acquisition activity was concentrated in the Permian Basin of West Texas and New Mexico, which has been helping the U.S. hold on to the world’s top spot.
The Permian Basin produced nearly 6 million barrels of oil a day in 2023. That’s more than Iraq, the United Arab Emirates or Kuwait, according to Peter McNally, analyst at Third Bridge.
“This year was another new high, you know, for the Permian. And that has attracted a lot of interest,” he said.
The Permian Basin has another thing going for it. “It’s almost like real estate: location, location, location,” said Robert McNally of consulting firm Rapidan Energy.
Industry-friendly regulation in Texas is part of that. There’s also less federal regulation when it comes to exporting the oil because it doesn’t have to cross state lines.
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