Pioneer Natural Resources lowers oil production forecast in Permian Basin by 1 million bpd by 2030

(Bloomberg) — Pioneer Natural Resources Co., one of the biggest oil producers in the Permian Basin, has lowered its long-term projection for output from the entire region.

On Jan. 5., Chief Executive Officer Scott Sheffield said his company now sees Permian production of about 7 million bpd by 2030, down from a previous view of 8 million bbl.

His comments come amid growing concern within the industry about the fading productivity of oil wells in the Permian and whether overall production could plateau.

Pioneer, Chevron Corp. and ConocoPhillips will be the only companies producing more than 1 million bpd in the Permian after 2030, Sheffield said at the Goldman Sachs Global Energy and Clean Technology Conference in Miami.

The Permian Basin, which straddles West Texas and New Mexico, is the largest U.S. oil patch and has been a source of massive output growth in recent years. The Permian has helped the U.S. become the world’s largest oil producer. The basin yielded 5.5 million barrels of crude a day on average last month, according to the U.S. Energy Information Administration.