In 2024, major US oil players ExxonMobil and Chevron were positioned to push higher output from the Permian Basin, a move that could support stronger US manufacturing activity in the year. Bloomberg reported on this strategic push, noting the potential for a notable lift in domestic oil supply that would ripple through energy markets and factory floors alike.
Industry insiders say Chevron intends to lift its Permian production to about 1 million barrels per day by 2025, representing a 10% increase over 2023 levels. This target sits well above the growth pace seen from other independent producers operating in the region, signaling a deliberate effort to capture more of the basin’s robust output. The plan aligns with Chevron’s broader objective to strengthen its position in a key US shale play while balancing capital discipline with growth. [Bloomberg]
ExxonMobil is also pursuing a meaningful rise in output, targeting a 7% year over year increase. When the Pioneer Natural Resources acquisition completes, Exxon’s total production is expected to rise sharply, with the Permian Basin contribution rising from its current base of about 650,000 barrels per day. Excluding Pioneer, the company already runs substantial Permian volumes, and the expanded asset base is projected to push overall oil output higher as the deal integrates. [Bloomberg]
Analysts watching the Permian say Exxon and Chevron are already the region’s dominant producers, so incremental gains from a higher base could have outsized effects on regional supply and, by extension, global markets. The focus for investors and policymakers rests on how quickly the two giants can translate this capacity into real production gains while managing project costs and regulatory considerations. The implications stretch beyond regional economics, influencing crude availability and pricing dynamics on a global scale. [Bloomberg]
The growth trajectory in 2023 highlighted how US production expansion can influence prices and pressures within OPEC+. This year may see a parallel pattern if shale output continues to rise, potentially tightening or reshaping balance sheets for major oil exporters and affecting downstream energy users in North America. Observers cautioned that much depends on commodity prices, capital spending choices, and the pace of project execution as market conditions evolve. [Bloomberg]
Meanwhile, market chatter has touched on earlier US imports of Russian oil entering through a Bahamas-based pathway. The development drew scrutiny as traders examined trade routes and compliance practices, with attention turning to how such avenues may interact with sanctions regimes and supply flows. The topic remains a reminder that energy markets are interconnected across oceans, with shifts in one region echoing globally. [Bloomberg]
Over the week, oil prices moved higher on signs of continued American supply efforts and resilient demand patterns. The price action reflected investor caution around earnings, supply discipline at the helm of major exporters, and the evolving balance between production growth and price stability. Analysts will be watching how US output decisions from the Permian influence pricing and market sentiment in the near term. [Bloomberg]