Permian Oil Output Forecast to Hit Record High in January -EIA

NEW YORK (Reuters) — The largest U.S. shale basin's output will surge to a record in January, according to a monthly forecast from the U.S. Energy Information Administration on Monday.

Crude output from the largest U.S. shale basin, the Permian basin of Texas and New Mexico, may rise 71,000 barrels per day to 5.031 million bpd, the EIA said. That would be the most on record and the basin's first time producing above 5 million bpd.

Output from the Permian is closely watched by the global oil market because it has pipeline access to export hubs in Houston.

Overall, crude output from U.S. major shale formations is forecast to rise by 96,000 bpd to 8.439 million bpd in January, the EIA said.

Production in the Haynesville basin is expected to remain flat at 33,000 bpd, while small output increases of 1,000 bpd to 13,000 bpd are expected in the five major regions.

During the first quarter, global demand will likely increase, the Organization of the Petroleum Exporting Countries said on Monday. The producer group left its full-year growth prediction steady, saying the Omicron variant of the coronavirus would have a mild impact as the world gets used to dealing with the COVID-19 pandemic.

Natural gas production from the major shale basins, meanwhile, will increase about 0.3 billion cubic feet per day (bcfd) to 89.3 bcfd in January, the EIA projected.

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