Oslo-based research firm Rystad Energy said May 19 total production in Delaware Basin is expected to reach a record 5.7 million boed in 2022. “Spurred on by high oil prices and appealing well economies,” Rystad said, “total production is set to grow by around 990,000 boed – almost half of which (433,000 boed) is new oil production.” Investments in Delaware Basin also are expected to increase by more than 40 percent from 2021 levels to reach $25.7 billion this year. Majors are expected to raise investments this year by 60 percent to $7.4 billion, and private operators’ investments are forecast to increase by 50 percent to nearly $9 billion.
Findings are based on Rystad’s survey of a peer group of 61 operators with WTI oil futures averages of $106 per barrel in 2022, $70 per barrel next year, and $50 per barrel by 2025. Veronika Meyer, Rystad vice president, said, “Delaware has emerged as the top oil-producing play in the U.S. shale patch, outpacing growth in other oil-rich regions. With oil prices expected to remain elevated, 2022 promises to be another outstanding year for production growth in the region.”