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Permian Seen Second to Saudis for Spare Oil-Output Capacity

  • U.S. region could boost crude output in days: Nansen Saleri
  • Area in Texas, New Mexico helping to boost nation’s oil output
An oil pumpjack works at dawn in the Permian Basin oil field in Andrews, Texas. (Photo by Spencer Platt/Getty Images)

An oil pumpjack works at dawn in the Permian Basin oil field in Andrews, Texas. (Photo by Spencer Platt/Getty Images)

Photographer: Spencer Platt/Getty Images North America
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The U.S.’s Permian Basin is looking like Saudi Arabia, with as much as 1 million barrels of spare oil capacity ready to go into production, according to Nansen Saleri, former head of reservoir management at Saudi Aramco, the world’s largest crude exporter.

Oil producers in the Permian Basin have at least a combined 500,000 barrels a day of idle oil production capacity, according to Saleri, who is now chief executive officer of Houston-based consultant Quantum Reservoir Impact. Saudi Arabia’s spare capacity is about 1.5 million barrels a day, according to data compiled by Bloomberg.