Wavefront Technology Solutions Inc V.WEE.H

Oil producers in a 'dire situation' and unable to ramp up

[davewho]

Production in the oil-rich Permian Basin is back around its pre-pandemic peak, according to Hollub, who noted the region faces significant challenges in boosting output. It's the only shale basin in the U.S. that can increase production, she said.

Part of the difficulty is the need to offset declines from wells in the region that are past their peak. Other obstacles to growth are reverberating throughout the economy, including labor shortages and issues securing raw materials. While the industry had prepared for these hurdles, it had not accounted for a scenario in which it needed to rapidly crank out oil supply.

Oil producers in a 'dire situation' and unable to ramp up output, says Oxy CEO (msn.com)