Permian-fueled Shale Boom Shows Little Sign of Abating, Even With Capital Spending Cuts

The Permian Basin-led surge in shale oil production shows little sign of abating, despite industrywide spending cuts, as explorers learn to do more with less.Almost all independent producers have reduced their budgets for 2019, but many still expect to deliver double-digit growth in production this year, fourth-quarter earnings reports show. The U.S. will likely pump a record 12.4 million barrels a day this year, 13 percent higher than in 2018, according to the Energy Information Administration. Most of the growth will come from the Permian Basin in West Texas and New Mexico."The machine still has enough cash available that it can continue to grow at a rate that's material," said Raoul LeBlanc, a Houston-based analyst at IHS Markit, said by phone. The rest of the world "is now not going to be flooded with oil, but still mildly glutted."Growth is slowing but still strong: the U.S. will add about 1.45 million barrels of oil a day on average this year, down from 1.6 million in 2018, according to EIA.  Continue reading...