Exploration & Production

Permian facing potential takeaway capacity constraints

The Permian Basin is the world’s largest hydrocarbon reservoir, but infrastructure constraints could soon lock in some of its capacity The Permian Basin is the world’s largest hydrocarbon reservoir, but infrastructure constraints could soon lock in some of its capacity.
By Peter Stewart 3 May 2018 0 30709
An oil rig in the US Permian Basin. Drilling in the Permian Basin. (Devon Energy)

Looming takeaway capacity constraints in the Permian Basin, which straddles West Texas and New Mexico in the United States, could slow production growth from the prolific shale formation.

The Permian has emerged in recent years as the premier shale play in the US and the world’s largest hydrocarbon reservoir. Oil production has trebled since 2011 and stood at more than 3 million barrels per day (MMb/d) in March 2018, with gas production at 280 million cubic metres per day (MMcm/d). The latest Drilling Productivity...