As oil and gas output from the Permian basin in the western part of the US state of Texas continues to grow, takeaway capacity out of the play is coming under further pressure. Permian production has risen to 3.2MM b/d currently with 478 rigs said to be currently operating in the play. Production has been rising on average by about 70K b/d per month in recent months as more producers add rigs amid falling costs and more productive wells stemming from the use of new technologies. The vice president of operations for Apache Corp. Tim Sullivan says his company has boosted its Permian output by 19% due to "fracture-simulating more lateral feet per day, completing wells faster and more efficiently, realizing significant cost savings." Pioneer Natural Resources Co. claims its new well designs in the Permian are boosting individual well outputs by 35% compared to the previous design. Permian output is now forecast to hit 3.9MM b/d in Dec.
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