MIDLAND, Texas — The Permian Basin has shattered previous production records, with output reaching an unprecedented 6.2 million barrels per day, according to data released Tuesday by the U.S. Energy Information Administration.
The surge in production comes as major Texas-based operators, including Diamondback Energy, Pioneer Natural Resources, and Occidental Petroleum, have accelerated drilling programs in response to elevated global crude prices and strong demand from Asian markets.
"We're seeing the most favorable operating environment in over a decade," said James Thornton, chief executive of Midland-based Permian Resources Corp.
Drilling Activity Accelerates
Active rig counts in the Permian Basin have increased 23% year-over-year, with 342 rigs currently operating across the region's two major sub-basins: the Delaware Basin in West Texas and the Midland Basin.
The expansion has created thousands of new jobs across the region, with unemployment in Midland County falling to just 2.1%, among the lowest rates in the nation.
"The Permian Basin remains the crown jewel of American energy production."
Infrastructure Investments
To support the production boom, pipeline operators have announced over $12 billion in new infrastructure projects. Enterprise Products Partners and Energy Transfer are both expanding their networks to move crude and natural gas liquids from West Texas to Gulf Coast refineries and export terminals.
Looking Ahead
Industry analysts expect production growth to continue through 2027, though at a more moderate pace. Shares of major Permian operators rose on the news, with Diamondback Energy up 2.6% and Occidental Petroleum gaining 2.4% in Tuesday trading.