From Yahoo Finance: 2025-03-27 06:01:00

U.S. oil producers in the Permian basin are facing geological limits to production growth due to increased water and gas output. Peak oil output may be nearing, impacting President Trump’s vision of lower oil prices. Output still rising, but shale executives expect growth to slow by 25% this year.

Producers in the Permian are dealing with rising water and gas levels per barrel produced, driving up costs. Gas output has increased eight-fold in the past decade, while crude production rose six-fold. The gas-to-oil ratio has steadily risen, making drilling more complex and costly.

Despite challenges, Permian producers are finding ways to recycle produced water for fracking, reducing disposal costs. The EPA is exploring ways to ease recycling for various purposes. Executives remain optimistic about the Permian’s potential, banking on new technologies, like artificial intelligence, to drive production gains.

Read more: US oil producers face new challenges as top oilfield flags