Source: RBN Energy – January 7, 2021
Permian Gas and Crude production back to where they were at the beginning of 2020
As the year starts, crude and gas production in the Permian basin have begun recovering towards Pre-Covid levels. On the natural gas side, as adequate gas pipeline capacity has finally arrived, a proper outlet for West Texas gas and producers restored curtailments, production has gone back up to 11.7 Bcf/d, which is just shy of where it started in 2020. For 2021, Natural Gas production is expected to continue to increase and reach 13.2 Bcf/d by 2022. The production story on the crude side is similar with an average output of 4.4 Mbpd for the start of 2021 with output levels reaching nearly 5.0 Mbpd by 2022. While price levels of crude will ultimately drive production growth in the basin, producers are likely to continue enjoying favorable crude oil differentials over the near-term.
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