Permian Shale Oil to Grow for Several Years: Occidental

The Permian basin in Texas and New Mexico will continue to grow shale oil for several years according to Occidental Petroleum CEO Vicki Hollub.

• "We've seen continuing improvement in our oil well productivity and so we haven't seen a drop off," Hollub said.
• "Some operators are experiencing degradation ... but I think the Permian (Basin) still has enough additional oil to develop that will continue to grow over the next few years," she said.
• Permian Basin crude production reached a record high of 5.63mbpd in July to help total US crude production up to the second highest on record of 12.991mbpd according to EIA data. The growth comes despite falling rig counts this year with the US oil count down nearly 20 % since a peak of 627 in November to 502 according to Baker Hughes data released on Friday.
• US shale production could grow by 275kbpd in 2024 and in 2025 driven by the Permian region according to Citigroup last week. Private companies could return 55 rigs by the end 2024 and another 15 in 2025 motivated by higher prices and lower well costs.