Permian Basin Oil Production Continues to Expand, Says Dallas Fed Report
New ‘Energy Indicators’ also looks at prices, employment, activity in sector
For Immediate Release: April 20, 2017
DALLAS—Oil production in the Permian Basin continues to rise according to a new report from the Federal Reserve Bank of Dallas.
Production in the Permian Basin increased by 57,700 barrels per day in March, according to the Dallas Fed’s Energy Indicators. Drilled but uncompleted wells in the Permian Basin also increased and are at their highest level since December 2013, the beginning of Energy Information Administration (EIA) data.
“The firming of crude oil prices since the OPEC agreement has likely boosted confidence in the sector, which is reflected in the continuous increase in drilled wells in the Permian since the beginning of this year,” said Dallas Fed senior research analyst Kunal Patel. “The rising DUC count in the Permian may imply that the basin can potentially respond with a larger increase in production when market conditions are more favorable.”
Total Texas oil and gas employment increased to roughly 208,300 jobs in February, a level marginally above the lows recorded in October. The average price of West Texas Intermediate crude oil fell slightly in March before recovering in April. That drop may have been driven by the rise in U.S. crude oil inventories in March.
Energy Indicators is a new monthly report from the Dallas Fed that provides an up-to-date snapshot of the energy sector primarily focused on the Eleventh Federal Reserve District, consisting of Texas, northern Louisiana and southern New Mexico. Each report provides data on prices, employment and production levels. Energy Indicators also highlights additional areas of interest, such as rig counts, exports and storage to provide a broad perspective on the industry.
Federal Reserve Bank of Dallas
Phone: (214) 922-6748