Uncertainty hangs over Permian permits
Output may be climbing fast, but producers are still waiting for clarity from the government on the future of federal drilling
Production in the US Permian basin is booming again, bolstered by strong oil prices, despite drillers continuing to act with restraint. The EIA forecasts that Permian crude production will hit 4.9mn bl/d in November—a record high. However, the basin still faces considerable uncertainty because of efforts by the Biden administration to review—and likely restrict—activity on federal land. Federal acreage in the Permian is located in New Mexico’s portion of the basin and accounts for roughly half of the state’s output. A permanent move to restrict federal drilling and leasing would therefore have significant implications for New Mexico’s production. Depending on two possible regulatory scenario

Also in this section
10 March 2025
Oil sands will be complemented by conventional and shale output growth and supply opportunities improved by the Trans Mountain Pipeline, but the tariff threat remains
10 March 2025
Political backbiting and slumping drilling activity point to further declines ahead of next year’s election
8 March 2025
Honouring the trailblazing women shaping the future of hydrogen
7 March 2025
Castberg may not be enough to offset declines in other fields, while its vastly different quality has far-reaching implications for buyers