Permian Roughneck Shortage Clouds Outlook for Oil Output Growth
- Evercore sees ‘significant challenges’ for drilling revival
- Labor scarcity likely to limit growth in next two years
Workers connect drill bits and drill collars in the Permian basin outside of Midland, Texas.
Photographer: Brittany Sowacke/Bloomberg
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Oil drillers set to increase U.S. production in the coming years face considerable headwinds from labor shortages in America’s most prolific shale patch, according to industry consultants Evercore ISI.
The Permian Basin straddling Texas and New Mexico will be the main driver of an estimated 750,000 barrel-a-day increase in U.S. oil output this year, but producers “could face some significant challenges” to go beyond that and repeat the same growth in the coming two years, Evercore said in a research note to clients.