July 5, 2021
The Permian basin is located in west Texas and east New Mexico. Most wells in Permian are classified as oil and produce significant quantities of associated gas. Approximately 800 wells have been drilled since 2010 with average new well initial productivity (IP) is 7.5 MMcf/d. The average first year decline in 2017 was 68%.
Currently gas production from gas wells is very limited and has averaged about 0.5 Bcf/d. Active gas development is expected later in the forecast period as Tier 1 Shale Gas basins and Permian oil production begin to decline. starting in 2030, gas production increases from under 0.5 Bcf/d to 3.7 Bcf/d by 2040.