HOUSTON — U.S. shale. is making a comeback as “Permania” infects a major oil industry conference in Houston this week.
The resurgence of the Permian Basin is the talk of IHS CERAWeek, a gathering of 3,000 energy professionals and world leaders that runs through Friday.
U.S. crude oil production is projected to reach an all-time high of 9.7 million barrels per day in 2018, led by shale production in the Permian Basin and the Gulf of Mexico and surpassing the record set in 1970, the U.S. Energy Information Administration said Tuesday.
Saudi Arabia's oil minister Khalid Al-Falih said he welcomes investment in U.S. shale, “regardless of what you might hear elsewhere,” and sees its growth as a sign that the global industry is rebounding.
“I think the green shoots are definitely here in the U.S.,” Al-Falih said during a keynote talk at CERAWeek.
The term “Permania” is getting tossed around liberally at CERAWeek.
Since hitting a low in May, most of the drilling rigs that have gone back to work in the U.S. have headed to the Permian. There were 308 drilling rigs at work last week in the basin, according to service company Baker Hughes, up from 134 in May. It has 41 percent of the active drilling rigs in the U.S., and 15 percent of the world’s working drilling rigs.
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