S&P Global Platts Analytics said last week production of natural gas in Permian Basin likely will reach sustained levels of more than 14 Bcfd in 2022Q1. Platts said Jan. 4 that twice in December Permian gas production was estimated at more than 14 Bcfd – just short of its record of 14.1 Bcfd in June 2021. This year’s pre-winter production push in Permian was fueled by a recent acceleration in drilling and completion activity. Since the start of 2021Q4, Permian operators added 34 rigs to bring the total to an estimated 300 for the week ended Dec. 29.
“Drillers are wasting no time putting recently added rigs to work,” Platts said. “As the upstream activity continues, the outlook for production growth has become increasingly bullish.”