Shale oil drives growth in the Permian and U.S. Lower 48
- AMP
- 2 days ago
- 2 min read
U.S. onshore oil production in the Lower 48 states (L48) has more than tripled since 2010, and a big part of that growth is thanks to shale oil production in the Permian Basin, a vast area that stretches across western Texas and southeastern New Mexico.
What is shale oil?
Shale oil refers to crude oil extracted from tight rock formations using horizontal drilling and hydraulic fracturing (fracking).
This method is more advanced than traditional vertical wells, allowing producers to unlock previously inaccessible oil.
What is “L48”?
“L48” is short for the Lower 48 states of the U.S.—all the mainland states except Alaska and Hawaii. This is where most onshore oil production occurs.
Key growth trends
In 2010, L48 onshore oil production was around 3.4 million barrels per day (b/d).
Traditional wells: 2.6 million b/d
Shale oil: 0.8 million b/d
By 2024, that total reached 11 million b/d, and shale oil made up 81% of it—about 8.9 million b/d, according to EIA.
The Permian Basin alone accounts for:
65% of shale oil growth since 2010
51% of total L48 oil production in 2024
A slowdown and recovery
Between 2015 and 2017, non-Permian shale plays (like Eagle Ford or Bakken) declined due to low oil prices.
COVID-19 triggered another major drop in 2020 when prices fell below $50 per barrel, causing a sharp cut in production.
Recovery came in 2021, led by the Permian. However, growth was slower than the boom years of 2017–2019.
Spotlight on the Permian fields
In 2024, 99% of the region’s shale oil came from just three fields:
Wolfcamp – the giant, producing 3.4 million b/d
Spraberry – key contributor
Bone Spring – productive and still expanding
Together, Spraberry and Bone Spring added 2.1 million b/d. The Wolfcamp field alone matched all non-Permian shale fields combined.
Final thoughts
The Permian Basin continues to be the heart of U.S. oil production, especially in shale.
While traditional drilling has declined, innovation in horizontal drilling and fracking has positioned this region as a global powerhouse.
As long as prices remain stable and technology keeps advancing, the Permian, especially fields like Wolfcamp, will stay at the center of America’s oil map.
