Latest news with #ArgusGlobalCrudeSummit
Yahoo
08-02-2025
- Business
- Yahoo
US Permian oil output growth to slow in 2025 despite Trump's plan, executives say
By Georgina McCartney, Arathy Somasekhar and Sheila Dang HOUSTON (Reuters) -Growth in oil output from the U.S. Permian basin, the country's top oilfield, is expected to slow by at least 25% this year despite President Donald Trump's vow to maximize production, energy executives forecast on Thursday. At a conference in Houston, they said production is expected to rise in 2025 by about 250,000 barrels per day (bpd) to 300,000 bpd from the shale formation spread across Texas and New Mexico, down from last year's 380,000-bpd increase. That forecast aligns with the U.S. Energy Information Administration's projection of a 300,000-bpd rise. Total Permian output hit 6.3 million bpd last year, accounting for about half of total U.S. output. "We still expect to see growth in the Permian but we expect to see that moderated versus the rate of growth we have seen before," Barbara Harrison, vice president of crude supply and trading at Chevron told Reuters on the sidelines of the conference. Chevron's Permian production grew 14% year-over-year, the company reported in its Q4 earnings, to a record 992,000 barrels of oil equivalent per day (boepd), bringing the company close to its 1 million-boepd target. "We are predicting closer to 9-10% over the next couple of years, continuing to grow our production there but not necessarily at the same rate that we have done in the past," Harrison said. Chevron CEO Mike Wirth said he believes Permian operators will keep capital spending modest and grow within their means, unlike the 2010s shale boom when their focus was to pump more. "Drill, baby, drill is not going to happen," Shannon Flowers, director of crude and water marketing at Coterra Energy said on the sidelines of the Argus Global Crude Summit in Houston. "The tension that we have right now is that the Trump administration said it wants lower energy prices. That's not necessarily good for producers," Flowers added. U.S. refiner Delek's CEO Avigal Soreq concurred. Producers are focusing on keeping capital spending under control and achieving higher prices for their oil and gas. They have prioritized returning cash to shareholders after a pricing rout in the last decade hurt profits and share prices. While the U.S. is already the world's top oil producer with output of about 13.2 million bpd in 2024, total U.S. production growth has slowed in recent years, climbing only about 280,000 bpd last year.
Reuters
06-02-2025
- Business
- Reuters
US Permian basin's oil output growth to slow in 2025 despite Trump's plan, executives say
HOUSTON, Feb 6 (Reuters) - Growth in oil output from the U.S. Permian basin, the country's most prolific formation, is expected to slow by at least 25% this year despite President Donald Trump's vow to maximize production, energy executives forecast on Thursday. At a conference in Houston, they said production is expected to rise in 2025 by about 250,000 barrels per day (bpd) to 300,000 bpd from the area spread across Texas and New Mexico. This compares to a 380,000 bpd increase last year. That forecast aligns with the U.S. Energy Information Administration's projection of a 300,000 bpd rise. Total Permian output hit 6.3 million bpd last year, accounting for about half of total U.S. output. "Drill, baby, drill is not going to happen," said Shannon Flowers, director of crude and water marketing at Coterra Energy Inc (CTRA.N), opens new tab on the sidelines of the Argus Global Crude Summit in Houston. "The tension that we have right now is that the Trump administration said it wants lower energy prices. That's not necessarily good for producers," Flowers added. U.S. refiner Delek's (DK.N), opens new tab CEO Avigal Soreq concurred. Producers are focusing on keeping capital spending under control and achieving higher prices for their oil and gas. They have prioritized returning cash to shareholders after a pricing rout in the last decade hurt profits and share prices. While the U.S. is already the world's top oil producer with output of about 13.2 million bpd in 2024, total U.S. production growth has slowed in recent years, climbing only about 280,000 bpd last year.
Reuters
06-02-2025
- Business
- Reuters
US refiner Delek could run more light sweet oil if tariffs bite, CEO says
HOUSTON, Feb 6 (Reuters) - U.S. refiner Delek (DK.N), opens new tab has the option to run more light, sweet crude oil if it is economical to do so, CEO Avigal Soreq said on Thursday, amid tariff uncertainty threatening supplies of heavy sour grades from Canada and Mexico. U.S. President Donald Trump on Saturday announced a 10% tariff on Canadian oil, and a 25% tariff on imports from Mexico, though implementation was put on a month-long pause on Monday after discussions between the countries' leaders. While the U.S. is the world's top oil producer, with output at a record 13.5 million barrels per day of crude, much of it is light in density and not ideal for domestic refineries that are largely configured to refine heavy crudes. "We have knobs to can do whatever is economic," Soreq said on the sidelines of the Argus Global Crude Summit in Houston when asked whether Delek will run more light, sweet crude in its refineries. Soreq also said the company expects Permian Basin oil production growth of 250,000 bpd to 300,000 bpd in 2025 and 2026. The U.S. Energy Information Administration sees total Permian Basin output at 6.61 million bpd in 2025, and at 6.89 million bpd in 2026, compared with 6.31 million in 2024. The Reuters Power Up newsletter provides everything you need to know about the global energy industry. Sign up here.
