New Mexico: the new frontier of US oil
New Mexico, where part of the Permian Basin is located, experienced the highest growth in crude oil production of all of the United States last year, with an increase in production of 300,000 barrels per day (bpd) which represented the half of the increase in US oil production, the Energy Information Administration (EIA) said in a report on Thursday.
Total U.S. crude oil production increased by 600,000 bpd in 2022 compared to 2021, averaging 11.9 million bpd, according to the EIA's Monthly Crude Oil and Natural Gas Production report.
For the third consecutive year, New Mexico's oil production growth eclipsed the crude production growth of any other US state, including Texas, the largest oil-producing state in the US, which also hosts part of the Permian schist.
According to EIA estimates, crude oil production in New Mexico increased by 300,000 bpd to 1.6 million bpd in 2022, a record for the state.
New Mexico and Texas contributed the largest growth in US crude production in 2022, while oil production in the rest of the US grew just 0.6% last year, or 33,000 bpd.
California crude oil production fell for the eighth consecutive year and Alaskan crude oil production fell for the fifth consecutive year. North Dakota, which had been one of the leading states in oil production growth over the past decade, saw oil production decline for the third consecutive year in 2022, the EIA noted.
In its Short-Term Energy Outlook (STEO) in May, the administration forecast that U.S. crude production will continue to increase this year and next. Total U.S. crude oil production is expected to rise to 12.5 million bpd in 2023 and 12.7 million bpd in 2024, according to the EIA's most recent estimates.
However, output growth may be lower than expected, as the new priorities of the shale patch – capital discipline and a focus on shareholder returns and debt repayment – are combined with supply chain constraints and inflation costs to weigh on growth in recent months.
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The article New Mexico: the new frontier of US oil comes from Scenari Economics .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/new-mexico-la-nuova-frontiera-del-petrolio-usa/ on Sun, 21 May 2023 07:00:06 +0000.