U.S. crude oil production reached a new all-time high in April 2019, averaging 12.2 million barrels per day (b/d), according to new data from the U.S. Energy Information Administration (EIA). This latest milestone marks the first time that monthly production volumes exceeded 12 million b/d and comes less than a year after domestic production surpassed 11 million b/d.
Driving this impressive growth is West Texas’ Permian Basin, which reached a record-breaking 4.97 million b/d in April. Per the EIA:
The Permian Basin in western Texas and eastern New Mexico continues to drive record national oil production growth. The Permian’s prolific tight oil plays with multiple layers—including the Bone Spring, Spraberry, and Wolfcamp—make it one of the lower-cost areas to develop. The Permian Basin accounts for about 63% of Texas and 96% of New Mexico crude oil production. From January 2018 to April 2019, Texas crude oil production increased by 1.1 million b/d (28%) and New Mexico production increased by 345,000 b/d (64%).
Continued production gains in the region underscore the importance of the nearly 1.5 million b/d of new pipeline takeaway capacity that is expected to come online before year’s end. Projects like Phillips 66’s 900,000 b/d Gray Oak pipeline and Plains All American’s 670,000 Cactus II pipeline will serve as vital links between this prolific production region and Gulf Coast refining and export hubs.