Oil production in the Permian Basin in the U.S. will increase dramatically by nearly 70 percent over the next five years

According to Dow Jones on June 13, IHS Markit research report shows that in the next five years, the Permian Basin of the United States oil production will increase by nearly 70%
from the current level.

The company estimates that the basin, which straddles Texas and New Mexico, will produce 5.
4 million b/d
of oil by 2023.
For comparison, the basin produced 3.
2 million b/d
of oil in May, according to the U.
S.
Energy Information Administration.

To meet this growth target, IHS expects to drill nearly 41,000 new wells in the basin over the next five years, while investing $308 billion
in exploration and production.
For comparison, IHS estimates investment in the basin at about $150 billion
between 2012 and 2017.

According to the Wall Street Journal, producers in the Permian Basin are facing bottlenecks in pipeline capacity and shortages of materials and workers
.

If IHS's projections come true, the Permian Basin will account for more than
60 percent of the net increase in global oil production over the next five years.
The basin will produce more oil than any OPEC member outside Saudi Arabia
.

IHS also expects natural gas and natural gas liquid production in the Permian Basin to double to 15 billion cubic feet per day and 1.
7 million barrels
per day by 2023.