Crude oil production in the Permian Basin is expected to increase to an estimated 2.4 million barrels per day in May, based on estimates from the U.S. Energy Information Administration. Between January 2016 and March 2017, oil production in the Permian Basin increased in all but three months, even as domestic crude oil prices fell. As production in other regions fell throughout most of 2015 and 2016, the Permian provided a growing share of U.S. crude oil production.
With rising oil prices over the past year, the Permian continues to be attractive to drillers, as reflected in rising rig counts. As of April 21, 2017, the number of rigs in the Permian Basin reached 340, or 40% of the 857 total oil- and natural gas-directed rigs operating in the U.S. The Permian rig count reached as high as 568 in late 2014 before falling to a low of 134 in spring 2016.