28 March | Oil

US Permian Basin oil production growth slows as fields age

US Permian Basin oil production growth slows as fields age

Oil production growth in the US Permian Basin has hit its slowest pace since the COVID-19 pandemic, according to Reuters. Companies are extracting more water and gas per barrel, raising development costs and signaling that America may be approaching peak production levels.

Gas production in the basin has surged eightfold over the past decade, while the water-to-oil ratio is rising, especially in less productive frontier zones. Executives forecast oil production growth could drop 25% this year to 250,000–300,000 barrels per day (bpd), though US government estimates remain slightly higher at 350,000 bpd. Either way, the figures point to a sharp slowdown.

Occidental Petroleum CEO Harold Hamm, a shale industry pioneer, predicts a new era of constraints for the States oil output. He projects domestic crude output will peak between 2027 and 2030 before entering decline, Reuters reports.

Elena Berseneva MarketCheese
Period: 28.05.2025 Expectation: 250 pips
Upward momentum in gas prices lasted only one day
Today at 11:28 AM 8
Period: 28.05.2025 Expectation: 2733 pips
Selling USDJPY amid concerns over US fiscal situation with target at 140,900
Today at 09:48 AM 15
Period: 26.05.2025 Expectation: 62000 pips
Major Ethereum holders drive buying pressure toward 2,700 level
Today at 08:20 AM 16
Period: 28.05.2025 Expectation: 664 pips
USDCAD falls as dollar weakens amid positive Canadian data
Yesterday at 11:10 AM 48
Period: 27.05.2025 Expectation: 800 pips
EURUSD rebound targets 1.142 level
Yesterday at 08:53 AM 52
Period: 28.05.2025 Expectation: 500 pips
Nvidia shares to extend gains toward 139 target
Yesterday at 08:02 AM 42
Go to forecasts