Permian Second Only to S Arabia in Production Capacity

The Permian has about 1 million bpd in spare oil production capacity that can be tapped in days. This compares to 1.5 million bpd in Saudi Arabia. I wonder what the rest of the Lower 48 looks lie and whether this capacity, if tapped, can offset the OPEC cuts. Just hypothetically, of course.

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I think this capacity is largely underestimated (not the amount, but its significance). I recognize that there is already lots of hype surrounding the Permian, but that hype rarely extends to the big big picture of things. The Permian really is a game changer, globally, for oil. The US oil industry has already changed the global industry in the last couple of years--but there is so much more to come. Headwinds will be environmental lobbies, particularly as pertains to pipeline expansion. The worst thing that could happen to the US oil industry (and the Permian) would be a significant oil spill (or a significant breakthrough with renewable energy).. 

 

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12 hours ago, Marina Schwarz said:

The Permian has about 1 million bpd in spare oil production capacity that can be tapped in days. This compares to 1.5 million bpd in Saudi Arabia. I wonder what the rest of the Lower 48 looks lie and whether this capacity, if tapped, can offset the OPEC cuts. Just hypothetically, of course.

CAN be tapped or WILL be tapped?

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51 minutes ago, TraderTate said:

CAN be tapped or WILL be tapped?

I would think CAN. It may be tapped, depending on OPEC's performance and oil prices. And if US ever got their refineries around to processing more light instead of heavy. The important thing is that it can be turned on as the market calls for it. Just to know it's there ought to spark fear in the heart of OPEC.

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It's time the US used this capacity!

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Anything that can be tapped, will be tapped, if I may rephrase cyberexperts' favorite mantra.

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