According to a monthly forecast from the US Energy Information Administration (EIA), crude oil output from the US biggest shale field Permian Basin will hit a new record high, surpassing its pre-pandemic record in December.
In December, oil production from the Permian is predicted to reach 4.953 million bpd. The basin’s percentage in US overall output would also rise more than at the end of 2019.
In comparison, the previous output record from the basin was at 4.913 million bpd reached in March 2020.
Analyst Andrew Lipow of Lipow and Associates commented, "Permian Basin wells tend to be the most prolific wells compared to other basins, so if you have more limited capital, you would go there first.”
Permian Basin is more beneficial for most producers as it has closer proximity to major pipeline hubs and connections to export centers.
