July 22–Pipeline constraints that are hampering Permian Basin producers’ efforts to get their crude and natural gas production to market aren’t expected to keep the region from driving U.S. production growth, at least through 2019.
In its July Short-Term Energy Outlook, the Energy Information Administration forecasts that Permian production will average 3.4 million barrels a day this year, up 871,000 barrels a day from 2017 and will average 3.9 million barrels a day in 2019, a 514,000-barrel-a-day increase. That increase is a little less than the increase EIA expects from the Eagle Ford, Bakken, Anadarko, Niobrara, Alaska and Gulf of Mexico combined.
The nation’s producing regions are expected to yield an average 10.8 million barrels a day of crude this year and 11.8 million barrels a day in 2019; both averages are far above the previous record of 9.6 million barrels a day set in 1970.
As a result of the pipeline constraints, which have lowered wellhead prices for Permian crude, the EIA expects the region’s production growth to slow next year as drilling activity is reduced. The EIA says some operators may temporarily move activity to the Eagle Ford until those pipeline constraints begin to ease late in 2019.
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