WEST TEXAS OIL DOMINANCE - Where do you think the most prolific region for U.S. oil production will be for the near future? According to a new production forecast from Scotland-based oil and gas consulting firm Wood Mackenzie, for the next 10 years, the West Texas Permian Basin will continue to dominate U.S. oil supply. The Permian Basin is already one of the world’s leading oil producers, pumping roughly 3 million barrels per day. And by 2030, Wood Mackenzie predicts that will double and expects the region to account for more than half of the total onshore oil production in the U.S.
Daniel Romero is an analyst with the group. He says there are hurdles to that growth – like the current lack of pipeline capacity to carry oil to export markets.
“There’s some real constraints and operators will be required to slow down a bit. But once you get to the end of next year, so talking end of 2019 into 2020, there’s this really big fairway for production to expand.”
According to the report, production in the Permian might peak by 2035, and then decline.