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Released February 17, 2022 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Continued high crude oil prices could push U.S. crude oil production to record levels in 2022 and 2023, largely driven by production growth in the Permian Basin, according to the U.S. Energy Information Administration (EIA)'s most recent Short-Term Energy Outlook (STEO).
Crude oil prices have generally increased since April 2020, according to the EIA, and a Brent price of $97 per barrel (BBL) on February 7 was the highest since September 2014.
The EIA's production forecast "assumes the West Texas Intermediate crude oil price averages $79/BBL in 2022 and $64/BBL in 2023, which we expect will lead to continued increases in drilling activity and crude oil production in the United States." However, "the price forecast is highly uncertain, however, and a number of factors could push prices higher or lower than our forecast."
The EIA forecast 2023 crude oil production to increase to 12.6 million barrels per day (BBL/d), up from 12 million BBL/d in 2022 and 760,000 BBL/d in 2021. This includes Permian production of 5.3 million BBL/d in 2022 and 5.7 million BBL/d in 2023.
"We expect more than 80% of that crude oil production growth to come from the Lower 48 states (L48), which does not include production from Alaska and the Federal Offshore Gulf of Mexico," according to the STEO. The Lower 48 added 220 oil rigs from January 8, 2021, to February 7, 2022, including 114 in the Permian Basin.
Industrial Info is tracking $30 billion worth of active onshore and offshore crude oil production projects in the U.S., including Alaska and the deep-water Gulf of Mexico, that have a high and medium probability (70-99%) of moving forward as planned. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production Project Database can click here for a full list of detailed project reports.
Diamondback Energy Incorporated (NASDAQ:FANG) (Midland, Texas), an independent exploration and production (E&P) company focused on the Permian Basin, is at work on a series of drilling programs that are set to wrap up in December. These include the $97 million Spraberry development, which will consist of 33 wells to produce crude oil and natural gas. Subscribers can click here for the project report, and click here for a list of 2022 drilling programs attributed to Diamondback Energy.
Two other privately held E&P companies specializing in the Permian also are at work on a series of drilling programs. Barron Petroleum (Graham, Texas) has commenced, among other projects, a $51 million drilling program in the Sutton County Production Field--consisting of 17 wells to produce 200 BBL/d of crude oil. Meanwhile, Blackbeard Operating LLC (Midland) is at work on a $48 million drilling program at the Midland Crude Oil Production Field, constructing 16 wells to produce 250 BBL/d. Subscribers can click here for the detailed project reports on Barron Petroleum and Blackbeard's 2022 drilling programs.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.
Crude oil prices have generally increased since April 2020, according to the EIA, and a Brent price of $97 per barrel (BBL) on February 7 was the highest since September 2014.
The EIA's production forecast "assumes the West Texas Intermediate crude oil price averages $79/BBL in 2022 and $64/BBL in 2023, which we expect will lead to continued increases in drilling activity and crude oil production in the United States." However, "the price forecast is highly uncertain, however, and a number of factors could push prices higher or lower than our forecast."
The EIA forecast 2023 crude oil production to increase to 12.6 million barrels per day (BBL/d), up from 12 million BBL/d in 2022 and 760,000 BBL/d in 2021. This includes Permian production of 5.3 million BBL/d in 2022 and 5.7 million BBL/d in 2023.
"We expect more than 80% of that crude oil production growth to come from the Lower 48 states (L48), which does not include production from Alaska and the Federal Offshore Gulf of Mexico," according to the STEO. The Lower 48 added 220 oil rigs from January 8, 2021, to February 7, 2022, including 114 in the Permian Basin.
Industrial Info is tracking $30 billion worth of active onshore and offshore crude oil production projects in the U.S., including Alaska and the deep-water Gulf of Mexico, that have a high and medium probability (70-99%) of moving forward as planned. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production Project Database can click here for a full list of detailed project reports.
Diamondback Energy Incorporated (NASDAQ:FANG) (Midland, Texas), an independent exploration and production (E&P) company focused on the Permian Basin, is at work on a series of drilling programs that are set to wrap up in December. These include the $97 million Spraberry development, which will consist of 33 wells to produce crude oil and natural gas. Subscribers can click here for the project report, and click here for a list of 2022 drilling programs attributed to Diamondback Energy.
Two other privately held E&P companies specializing in the Permian also are at work on a series of drilling programs. Barron Petroleum (Graham, Texas) has commenced, among other projects, a $51 million drilling program in the Sutton County Production Field--consisting of 17 wells to produce 200 BBL/d of crude oil. Meanwhile, Blackbeard Operating LLC (Midland) is at work on a $48 million drilling program at the Midland Crude Oil Production Field, constructing 16 wells to produce 250 BBL/d. Subscribers can click here for the detailed project reports on Barron Petroleum and Blackbeard's 2022 drilling programs.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.
