HOUSTON (AP) — The Permian Basin in West Texas is expected to become the third-largest oil producing region in the world.
The Houston Chronicle reports that research shows the Permian is on track to produce more oil within five years than any OPEC nation except Saudi Arabia. Crude volumes from the region are projected to more than double by 2023.
Most of the oil is headed to refineries and ports near Houston and Corpus Christi. U.S. crude exports are expected to spike to nearly 5 million barrels a day by 2023.
IHS Markit Vice Chairman Daniel Yergin says the Permian’s production in the past two years has grown far more than any country in the world. The consulting firm estimates that $308 billion in new spending is needed to drill more than 40,000 new wells to meet projections.
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Information from: Houston Chronicle, http://www.houstonchronicle.com