Exxon and Chevron Plan Permian Oil Surge as Peers Preach Caution
The Western world’s two largest oil majors are expecting double-digit growth from the basin in 2022.
President Joe Biden, who had asked OPEC+ to raise oil production faster to tame runaway energy prices, got a gift on his home turf instead: a blockbuster growth forecast for U.S. shale production from the country’s two biggest oil companies.
Exxon Mobil Corp. said Tuesday it plans to boost output by 25% this year in the Permian Basin, the biggest U.S. oil-producing region. That comes four days after Chevron Corp. announced it will ramp up its own Permian supplies by 10% from an even larger production base. Such aggressive targets from the Western world’s largest oil majors are a surefire sign that U.S. shale is back to growth mode after cuts in 2020 and a lackluster 2021.