Fracking activity in the Permian basin is expected to help oil production rise almost every month this year in Texas, despite having the slowest growth rate in the nation, Rystad Energy said in a report.
In December, statewide production of crude oil rose to approximately 5.4 million barrels a day, Rystad Energy said.
Data from the Energy Information Administration (EIA) said November's crude oil production is Texas was at 5.329 million barrels a day. This was a new record for the amount of barrels produced in Texas.
The current numbers for December's report said 4.5 million barrels were produced a day, but Rystad Energy's assessment doesn't include delayed data. Activity trends approximate 900,000 barrels per day unreported.
“We see a monthly addition of 70,000 bpd in December in Texas. A flat oil production would be the most conservative scenario,” Alexandre Ramos-Peon, Rystad Energy’s senior shale analyst, said in a statement.
This year's oil production growth is expected to slow in Texas and the rest of the nation.
Rystad Energy still expects to see production growth each month this year, despite having a slower production rate, but no material growth is expected in the first quarter of this year.
To see material growth in oil production, fracking activity or average well productivity would have to rise. Neither of these are likely to rise in the first quarter of this year, Rystad Energy said.
Ramos-Peon said in his statement, “the present activity remains above the balancing point needed to maintain production."