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Https Www Reuters Com Business Energy Us Shale Companies Produce More Crude Using Fewer Rigs 2024 08 13

Oil Production Soars in the Permian Despite Fewer Rigs

Greater Operating Efficiencies Drive Record Outputs

Production Days Increased, Costs Reduced

Devon Energy, Apache, Diamondback Energy, and Permian Resources have all reported higher than expected production in the Permian shale region, despite a decline in the number of rigs. This increase in output can be attributed to greater operating efficiencies, allowing companies to extract more oil without investing in additional drilling infrastructure.

Chevron has reported an increase in total production from the Permian, with 62 million barrels per day extracted in June, a significant boost from previous figures. The company has pointed to technological advancements and improved well management practices as key factors contributing to this surge.

Analysts have noted that this rise in production with fewer rigs highlights the industry's ability to adapt and innovate. Companies are leveraging data analytics, advanced drilling techniques, and enhanced recovery methods to extract more oil from existing wells.

In addition to increasing production, companies have also reported a reduction in operating costs, thanks to the improved efficiency. This combined with the higher production has resulted in increased profitability for many Permian-based operators.

The ongoing production gains in the Permian region are expected to continue in the coming months, with further efficiency improvements and technological advancements anticipated. This surge in output is expected to have a significant impact on the global energy market, ensuring a stable supply and potentially lower prices.

Zawya