According to data from the US Energy Information Administration (EIA), the shale and tight formations within the Permian Basin (Permian) produced 6 million b/d of crude oil and 22.2 bcf/d of dry natural gas in December 2025. Permian unconventional wells now account for 44% of total US oil production and 19% of marketed gas. Once conventional production from traditional non-shale limestone and sandstone reservoirs is factored in, the Permian accounts for 48% of total US oil production and 23% of marketed gas.

EIA data show that for the full year 2025, the Permian produced 6.6 million b/d, a 280,000 b/d increase from 2024. Conventional represented about 10% of total output. Conventional and unconventional oil plus natural gas bring total Permian Basin production to 10.35 million boe/d.

Permian breakeven levels were US$61 per barrel in the Midland Basin and US$62 per barrel in the Delaware Basin based on responses to the Dallas Fed Energy survey. These levels were much lower than the national average of US$77 per barrel.

West Texas Intermediate crude oil is hovering around US$100 per barrel as of press time, which gives Permian operators sizeable profit margins. Higher prices for longer could fuel more drilling, especially if Middle East production remains limited due to export constraints out of the critical Strait of Hormuz (see “Mergers & Markets: Dire Straits,” May 2026 Gas Compression Magazine, p. 6).

Flaring Feat

Despite higher production, data from the Texas Independent Producers and Royalty Owners Association (TIPRO) shows that flaring has fallen significantly in the region. The association published a report titled US Permian And Texas See Record Production While Cutting Flaring Intensity By Half or More.” Between 2019 and 2024, the report found that US oil production grew by 8%, while flaring intensity fell by 45%, from 3.86 m³/b in 2019 to 2.12 m³/b in 2024. Texas flaring intensity fell 50% in that period, while Permian flaring intensity fell by an astounding 62%.

“The level of flaring reductions the industry has been able to accomplish over the past five years is very significant, in some regions it’s been nearly halved,” said Ed Longanecker, president of TIPRO. “Achievements to that degree don’t just happen. It’s proof that the industry’s commitment to the environment wasn’t just a talking point, but rather clear action in the way it operates and invests in its business.”

The report found that Texas surpassed the 2-billion-barrel annual production run rate for the first time.

“Record production output across the United States, supported in major part by the hardworking people in Texas and the Permian Basin, highlights our industry’s ability to meet rising global energy demand, secure energy supplies, and provide a stabilizing force to an otherwise volatile global energy market,” said Longanecker.

Higher Production, Lower Emissions

Regular readers of Mergers & Markets will be familiar with the industry’s overwhelming impact of consolidation. Consolidation continues to be the driving force behind higher Permian production and emissions reductions.

Private operators tend to flare at higher intensities than their publicly traded peers because they don’t face nearly as much institutional pressure. What’s more, emissions reductions are more economical at bigger scales. As companies get bigger through mergers and acquisitions, they achieve cost reductions through synergies that can then be reallocated to sustainability efforts.

The seven largest Permian producers account for roughly 70% of the basin’s oil and natural gas production.

Company	Estimated Permian Basin Production (boe/d)
ExxonMobil	1.55 million
Occidental Petroleum	1.05 million
Chevron	1.025 million
Diamondback Energy	979,400
ConocoPhillips	898,000
Devon Energy (Includes Coterra Energy)	795,000
EOG Resources	585,000
Permian Resources	412,850
SM Energy	371,000
Mewbourne Oil	300,000
APA	280,000
Matador Resources	207,594
Vital Energy	190,000
CrownQuest	160,000
Fasken Oil & Ranch	85,000
Other Operators	1.06 million
Total Basin	10.35 million

Data sources: Q1 2026 earnings reports, SEC filings, US Energy Information Administration, and recent industry production estimates (especially for private companies and other operators). Figures vary depending on assumptions used to calculate boe/d versus only b/d.

Although most oil and gas companies have pulled back on renewable energy investments and net-zero targets, many still have aggressive sustainability goals. Lower industry-wide carbon intensity will help oil and gas play a lasting role in the energy transition while anchoring the nationwide energy mix. Natural gas is playing a critical role in powering artificial intelligence (AI) data centers. The cleaner the US oil and gas is, the more appealing it will be for energy-dependent countries looking to buy US energy. Emissions reductions will also make the US oil and gas industry better positioned to withstand changing regulatory policy, regardless of the administration.

ExxonMobil

ExxonMobil has the largest Permian footprint due to its organic investment in the region and its acquisition of Pioneer Natural Resources, which was completed in May 2024. The Permian is one of ExxonMobil’s three “advantaged assets,” the other two being its liquefied natural gas projects and production offshore Guyana. ExxonMobil expects these three advantaged assets to produce a combined 3.7 million boe/d by 2030, representing 65% of its total forecasted 2030 production.

“In the Permian, we continue to show how scale and proprietary technologies improve efficiency, recovery, and long-term value creation,” said ExxonMobil Chief Executive Officer Darren Woods on the company’s Q1 2026 earnings call. “We remain on track to grow full-year Permian production to 1.8 million oil-equivalent barrels in 2026, with that growth grounded in value, not volume. We’re also progressing our Permian net-zero ambition with continuous methane monitoring implemented across all key assets in New Mexico.”

Occidental Petroleum

Occidental Petroleum (Oxy) completed its acquisition of CrownRock in August 2024, building on its purchase of Anadarko Petroleum in August 2019. Both deals, combined with its organic growth efforts, have led to surging Permian production.

Oxy is heavily committed to sustainability through its carbon capture, utilization, and storage (CCUS) efforts. Project Stratos is designed to be the world’s largest direct air capture facility, with an expected 0.5 MTPA of carbon dioxide (CO₂) captured from the atmosphere. The project is expected to cost US$1.2 to US$1.3 billion, backed by a US$550 million investment by asset management firm BlackRock.

The project uses fans to draw ambient air over a liquid chemical solution that binds with CO₂, trapping it as solid calcium carbonate pellets. These pellets are then heated in a calciner to release pure, concentrated CO₂ for storage while recycling the chemical base.

“The construction of [Stratos] Phase 2 is now complete,” said Richard Jackson, senior vice president and chief operating officer of Occidental Petroleum, on the company’s Q1 2026 earnings call. “This is the second 250,000 tonnes per year of capacity and includes the final two air contactor trains and updated pellet reactors based on the new design. We also completed commissioning of the Phase 1 unit operations, which includes operating air contactors and the central processing facility.”

Chevron

Chevron’s acquisition of Hess, completed in 2025, boosted its Bakken Basin production and gave it a 30% stake in the Guyana Infrastructure consortium with ExxonMobil and CNOOC. Unlike ExxonMobil, its latest major acquisition didn’t contribute to its Permian production. However, in 2020, Chevron bought Noble Energy, which gave it 92,000 net acres (37,231 ha) in the Delaware Basin.

Chevron has been developing its Permian assets while reducing emissions. It is targeting zero routine flaring across Perian operations by 2030, having already reduced its methane intensity by over 50% since 2016.

Diamondback Energy

Diamondback Energy (Diamondback) closed its US$26 billion merger with Endeavor Resources in September 2024, thereby solidifying its position as one of the largest pure-play Permian operators. In its Q1 2026 investor presentation, Diamondback said that its production skyrocketed to 521,000 b/d, or 979,400 boe/d. The company’s advanced drilling techniques and massive portfolio of 890,000 net acres (360,170 ha) enable it to achieve ultra-low production costs, with a breakeven (including its dividend expense) of US$36 per barrel.

Diamondback has outfitted over 90% of its operated oil production facilities with continuous emissions monitoring systems (CEMS) that track and address emissions, leaks, and flaring inefficiencies in real-time. The company plans to reduce its Scope 1 and 2 greenhouse gas emissions by 50% by 2030 (from 2020 levels) and reduce methane intensity by at least 20% from 2024 levels.

ConocoPhillips

ConocoPhillips completed its US$22.5 billion acquisition of Marathon Oil Corp. in November 2024, building on its January 2021 US$13.3 billion acquisition of Concho Resources. ConocoPhillips has sizeable international and offshore assets, but the Permian remains its largest production region, accounting for nearly 40% of its total production.

ConocoPhillips achieved its target to eliminate routine flaring by the end of 2025. The company aims for a 50% to 60% reduction in Scope 1 and Scope 2 emissions intensity by 2030 (from a 2016 baseline) and for near-zero methane intensity by 2030. ConocoPhillips defines near-zero as less than 1.5 kg of CO2e/boe, or roughly 0.15% of the natural gas produced.

Devon Energy

Devon Energy completed its US$58 billion all-stock merger with Coterra Energy on May 7, 2026, which pole-vaulted the combined company to one of the largest Permian producers. The Permian accounts for roughly half of total production, with other assets across the Lower 48.

By 2030, Devon is targeting zero routine flaring, a 65% reduction in methane emissions, and a 50% reduction in Scope 1 and 2 greenhouse gas (GHG) emissions (from a 2019 baseline).

EOG Resources

EOG Resources (EOG) hasn’t made the splashy acquisitions like some of the other major Permian players, but it did buy Encino Acquisition Partners in August 2025 for US$5.6 billion, which boosted its assets in the Utica Shale.

EOG’s experience in the Permian has made it one of the most aggressive proponents of emission reductions. It achieved zero routing flaring across all of its US operations in 2023 and maintains a staggering 99.9% wellhead gas capture rate in the Delaware Basin. Unlike some operators that have pulled back on net-zero targets, EOG has maintained its aggressive goal of reaching net-zero by 2040 by reducing, capturing, and offsetting emissions through a combination of closed-loop completion systems, vapor recovery units, and CCUS investments.

The Permian’s Economic And Environmental Impacts

At first glance, Permian Basin production may appear to be hitting all-time highs due to elevated oil prices. But producers aren’t making investments just to make a quick buck under current operating conditions. Rather, Permian Basin production is rising because consolidation is driving operational and sustainability advantages. High-margin free cash flow generation fuels innovation, such as horizontal drilling extending a once-unheard-of 4 miles (6.4 km), multi-well completion techniques from a single pad, predictive maintenance, and investments in electric, dual-fuel, and natural-gas-powered engines, compressors, and pumps.

At the same time, producers are remaining committed to sustainability efforts. Methane, GHG, and flaring targets, along with investments in CCUS, show that the industry wants to play a role in the energy transition rather than dig in its heels and stand against it. Global energy demands are increasing due to population and economic growth, as well as the insatiable appetite of AI data centers. One of the best ways to lower global emissions is to decarbonize existing industries. The Permian is rising to the challenge of leading the US oil and gas industry while maintaining sustainability standards.