The Permian Basin holds the crown of being the largest and most important oil producing province in the Lower 48, said James Scarlett, vice president of RS Energy Group, speaking at Hart Energy’s recent DUG Permian conference. In 2016, some 2 million barrels per day (MMbbl/d)—more than 25% of the 8 MMbbl/d of Lower 48 oil production—came from the Permian Basin.
“That volume is now up to 2.2 MMbbl/d, and we expect production to continue to grow. Nearly 40% of the 654 horizontal rigs turning to the right in the Lower 48 today are in the Permian Basin. And when we layer in factors such as increased drilling efficiencies, longer laterals, and higher-rate wells, we’re adding more oil production from the Permian Basin than we ever have in history,” Scarlett said.