Scott Kidwell
For a basin that celebrated 100 years of commercial production in 2021, you would think the best days of the Permian Basin were behind us. However, in November of 2021, the region set a new record for oil produced on a daily basis.
Then 2022 came around, and the Permian Basin set another production record in January by producing more than 5 million barrels of oil a day. Then the region set another production record in February, then another production record in March, and at the writing of this column projections from the U.S. Energy Information Administration (EIA) are that the Permian Basin will set another new production record in April as well. On top of that, the region has been producing record amounts of natural gas since the Spring of 2021.
Even with record production, in March when the price of WTI tipped $130 a barrel in trading and gasoline prices soared, there were many who asked the question, is the United States oil and gas industry going to ramp up operations to reduce the cost of gasoline at the pump? Well, as those of us out here in the Permian Basin know, we had already been increasing production before gasoline prices became national headlines (and a point of interest by those elected to lead our nation), but leaps in oil production don’t happen overnight. It takes time to bring on new production and when action is taken to remove millions of barrels from the market, it will take time to add millions of barrels to the market.
The increases in oil and natural gas production occurring in the Permian Basin have come because the world continues to demand more energy and, in particular, more hydrocarbon energy. That might not be the current demand of policy makers and financial institutions, but it has been and continues to be the demand of those living in energy poverty and those without energy independence around the world. Oil and natural gas improve the human condition and they improve energy efficiency, as well as food production and distribution, transportation, and quality of life in an untold number of facets. The Permian Basin is leading on efforts to increase oil and gas production to provide for that increased quality of life.
PBPA started a media effort earlier this year advocating for “Midland Not Moscow” and declaring that we are “Producing Freedom” in the Permian Basin. This might sound like rhetoric, but it doesn’t just make for catchy bumper stickers, it is also the truth. Energy security for the United States and for the world relies on energy independence at home. By producing more energy for the world, the United States limits the ability of others to use energy as a dictatorial weapon to gain power, wealth, and influence.
Energy produced in the United States does not subjugate others, it frees them. And no one produces energy quite like the Permian Basin, the leader not only in hydrocarbon energy production in the United States, but on wind and solar energy production as well. It is time that these facts and this valuable energy production are realized for what they are by those calling for more energy production from the Permian Basin with one hand while dealing out new regulations on the oil and gas industry with the other hand.
The Permian Basin truly is producing freedom, but oh what heights could we reach if the importance of that production would only be realized and recognized by those it benefits the most! The PBPA’s mission includes making sure those around the world, but in particular those in positions of power over the industry, understand the importance of the work being done in West Texas and Southeast New Mexico and the importance of actions taken to restrict that work. Continue to support the PBPA in this mission and the records broken in 2022 might only be an afterthought compared to what records we all set together tomorrow.
