December 11, 2023

According to the EIA (US Energy Information Administration), Permian Basin produces more crude oil than any other region in the USA. Permian Basin accounts for more than 40 percent of total US crude oil production. It is also the nation’s second largest natural gas-producing region accounting for about a quarter of total US natural gas production.
The Permian Basin Oil and Gas Magazine (PBOG) said that most of the natural gas produced in the Permian region is associated natural gas. Consequently, in the Permian region, increased crude oil production has also increased production of associated natural gas. Average crude oil production in the first nine months of 2023 increased by 68 percent in the Permian compared with 2018 while natural gas production in the Permian increased by 104 percent over the same period, according to the EIA drilling productivity report.
Spraberry, Wolfcamp and Bone Spring plays produce most of the associated natural gas in the Permian region. In 2023 these three plays produced 13.2 Bcf/d more associated natural gas than in 2013. Higher crude oil production accounted for 65 percent of the increase in natural gas production, and 35 percent of the increase came from a higher GOR (gas-to-oil ratio), which rose from 2.0 Mcf/b in 2013 to 3.1 Mcf/b in the first seven months of 2023.
EIA said as more oil and natural gas are released within a well, the GOR tends to progressively increase, raising the volume of associated natural gas produced per barrel of oil. Pressure within the reservoir declines progressively as more oil is brought to the surface to allow more natural gas to be released from the geologic formation.
(Source: PBOG – Image: drilling rig in the Permian Basin/Federal Reserve Bank of Dallas)