Permian set for growth slowdown

A range of obstacles will hobble further output increases in the Lower 48’s most productive basin heading into 2023

The Permian basin is inarguably the engine room of US shale, accounting for 60pc of domestic production in 2022. But high inflation, supply chain constraints, a decline in the availability of drilled-but-uncompleted (Duc) wells and limited pipeline capacity are set to limit growth next year. “We are certainly seeing some cost inflation, and [inflation in] the Permian is probably the strongest that we see around the world, into the low double digits year-on-year,” says Mike Wirth, CEO at Chevron. “In other parts of our portfolio, the cost pressures are probably a little bit less and the constraints are not quite as pressing.” Inflation will range from 10–15pc in 2023, according to forecasts f