The Permian Basin | February 2022
Located in West Texas, the Permian Basin has been producing oil for over 100 years. The Permian leads the US in oil production and analysts estimate that there is 43 Gbbl of oil still in the Permian; 80% of reserves in the basin are believed to be at less than 10,000 feet. Some top formations are the Wolfcamp, Upper/Lower Spraberry, and the Leonard.
State Drilling Statistics
Active Drilling Rigs in Basin- 309 (+16)
Total Rigs in Texas- 311 (+27)
Total Rigs in United States- 650 (+40)
Total U.S. Rigs 62% YTD
Top Producer by BOE – Pioneer
Permian Permitting Data
Permits Approved – 504
In the midst of peak oil prices the Permian basin has set another production high for the third month in a row. Production in the basin reached more than 5 million barrels a day for the first time since 2007, according to the EIA. The Permian alone outproduced all OPEC members besides Saudi Arabia. Experts confidently project production to continue to rise as the price of oil does so too amidst high world wide demand. Experts also say this quick rebound from production lows during the pandemic is a show of the basin’s health.
Even with soaring oil prices, most producers plan on keeping their production flat this year, including Permian operator Diamondback. While one would expect production to increase due to record profits and high global demand, producers are still recovering from the past two years and are focusing on returns. Recent global events such the Russian invasion of Ukraine and fallout of the Iran Nuclear Deal are raising demand and causing U.S. producers to question their decision to not increase production. Diamondback has said they will keep production at 220,000 b/d, however, global pressure may cause that number to increase.
Devon and Chevron are some of the Permian’s most productive companies, both are beginning projects to greatly reduce their air pollution. Part of Devon’s plan will include using renewable energy to help lower their environmental footprint and provide cheap electricity. Devon is attempting to be an industry leader and set an environmental example for other energy companies. Chevron is working with Project Canary to lower their emission output, focusing mainly on methane emissions. Both companies have detailed reports of their respective projects on their websites.
Operators with Highest Permitting
Top Producers By BOE—————————— –
|Change||Rank||Company||Production (mmBOE) (1/22)|
Counties with Highest Permitting
Texas Oil Production
Texas Gas Production
Click above to subscribe to the RARE
PETRO Podcast Network or visit
The information contained in this newsletter is provided by RARE
PETRO Engineering, PLLC via the following sources unless otherwise
RARE Petro Analytics