Did you know that the Permian Oil Field is the most productive oil field in the world at 4.1 million barrels per day? Permian oil has long been a solid and reliable source of oil.
However, recent reports have indicated that production has started to slow down. If this is true will we be more reliant on non-American oil in the near future?
Is there cause for concern? Check out our report into the situation.
Is Overall Oil Production Depleting?
Artem Abramov who is Rystad’s head of shale research and expert in this matter responds to this question. He states that there is not sufficient evidence to support this report. He then describes the report as speculation. Reports of job losses are more likely related to fluctuating oil prices.
He states that actually average new production from the wells is matching all-time highs seen just six months ago. The facts do not support this new speculation of a downturn. If peak production has not yet been met, when will it be reached?
G+R oil producers have even indicated that the Permian Oil Field may not reach peak production for almost another ten years.
What is the Current Status?
Permian oil production is a golden goose. Oil companies have been extracting oil there for almost 100 years. However, in recent years rather than slowing down, it has been producing more than ever. In the last 10 years, it has increased up to the figure of 4 million barrels mentioned in the introduction.
Think too of its untapped potential. According to experts, oil producers have started to create an average of 5,316 wells per year for the last half a decade. This has required significant infrastructure support. But they have not completed the construction of these wells.
This means that there are a large number of successfully drilled wells that are waiting to be tapped and the oil extracted.
What is the Future of the Permian Oil Basin?
If peak production may not be met for the next 10 years, what increases can we expect? Soe reports indicate that capacity will be at least doubled. This would mean a jump from 4 to 8 million barrels per day.
Companies blame a lack of available pipeline for this capacity not yet being realized. However, as we see, the future is not bleak for the Permian Oil Basin. In fact, it will be pumping oil for years to come.
Permian Oil Projects and Much More
Oil companies have been extracting Permian oil since the 1920s. Despite the rumors, there are no serious signs of it letting up yet.
Solid engineering and quality infrastructure have been supporting the Permian Basin oil production for almost 100 years.
If you would like to benefit from our experience in engineering for long-term projects of this size, we would like to meet you. Simple contact us or follow our blog to see how we can help you.
