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