Permian Basin the Site of Oil and Gas Expansion to Lower Gas Prices Amid Russia Conflict
Triple-digit oil prices in the U.S. continued for the second month in a row. This is leading to increased operations and land deals in the nation’s most active oilfields in southeast New Mexico and West Texas. So what’s the current strategy in place to lower gas prices?
The Permian Basin saw rising fossil fuel activity throughout 2022 amid increased demand as COVID-19 subsided.
The invasion of Ukraine created further supply strains as it led to international condemnation of Russian leader Vladimir Putin and the removal of his country – the world’s second-highest oil producer – from the global market.
That supply disruption sent gas prices at the pump to $4 or more throughout New Mexico and the U.S. in the weeks since.
Some of the world’s largest oil and gas companies recently announced plans to increase their output from the Permian. This is with Chevron being the latest in announcing via an April 1 news release that it would increase its production in the region by 10 percent, amounting to about 1 million barrels a day by 2025.
That would be about a fifth of the about 5 million barrels a day produced in the Permian in 2021. Besides , this is per data from the U.S. Energy Information Administration.
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Source: Carlsbad Current-Argus
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