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US Permian Basin Output Falls in May

OIL

Oil production in the Gulf Coast PADD3 fell in May versus April according to EIA data released last week.

  • Output from Texas and New Mexico dipped from a peak of 8.45mbpd to 8.23mbpd in May having gradually risen from below 7.0mbpd in mid 2020. The Permian Basin in PADD3 is the worlds largest oil basin and accounts form 45% of total US oil production. The annual pace of growth has slowed from 3.7% in 2029 to 1.7% so far this year. Increasing costs, supply constraints and the capital discipline of drillers has been limiting production increases so far this year.
  • Overall US crude production was down from 11.65mbpd in April to 11.595mbpd in May.

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