Peak Permian Is Approaching Faster Than You Think
The region that’s driving U.S. oil growth is already showing signs of peaking, making the goal of U.S. energy independence as elusive as ever.
Clouds are gathering over the Permian basin.
Photographer: Callaghan O'Hare/BloombergThe heart of America’s oil renaissance is found in the Permian basin, which is showing signs of maturing fast. And for shale basins, that’s not a good thing. If the rich petroleum region wanes, U.S. oil independence will remain elusive and the OPEC cartel may finally see off its greatest threat.
The Permian, spread across west Texas and southeast New Mexico, yields more than a third of all U.S. oil production and it has contributed about two-thirds of the past three years’ worth of growth. Its boom has allowed America to export more than 3 million barrels a day of crude on a regular basis since May — more than every OPEC country except Saudi Arabia and Iraq. But the U.S. still imports twice that volume. A slowdown in the Permian would see that gap widen again.