How One US Region Has Shaped the Past and Future of Oil

A single patch of land is responsible for 8% of the global crude oil supply. In 2023, the region produced 6.3 million barrels per day and generated $325 billion. That’s over 2/3rds the GDP of Thailand. 
Welcome to the Permian Basin.  
The energy powerhouse stretches across West Texas and New Mexico, covering over 220,000 km² and driving industries locally and abroad. If you’ve driven a car, flown on an airplane, or purchased a polyester shirt, some of that oil has likely come from this little-known area.
It has also witnessed many firsts in the pipeline industry.

Permian Basin History

Named after the Permian geological period 250 million years ago, oil was first struck in 1920 outside a small town in Texas. Production quickly kicked into gear, and it soon became a major producer, transporting liquid gold via wagons and railroad carriages. 
With America’s entrance into WWII, the military was desperate for fuel. Engineers constructed two 24” pipelines from Texas to the east coast, covering over 2,000 kilometers. It was a massive undertaking and among the world’s first long-distance pipelines. Remarkably, the lines are operating nearly a century later. 
Since then, the Permian Basin has been the heart of America and the world’s energy sector. 28.9 billion barrels and counting have come out of these arid plains. 
The area has also served as the testing ground for many innovations now fixtures in the oil industry. Operators were early adapters of waterflooding, horizontal drilling, and hydraulic fracturing. 
As the world transitions to clean energy, the basin has become a leader in carbon capture and storage projects, using CO2 to recover oil while reducing greenhouse emissions.

Today’s Infrastructure Demands

The Permian Basin is now home to an intricate web of pipelines, refineries, and storage facilities designed to support its extraordinary output.
Robust production demands robust infrastructure. Pipelines transport increasingly large volumes of crude oil and natural gas across the region and to Gulf Coast refineries for export. As the output has ramped up, infrastructure has struggled to keep up.  
Several major pipeline projects have already broken ground to ease the growing pains, including several 42” lines covering hundreds of kilometers, but operators will have to wait before they go online. 

Dexon’s Role

Dexon is proud to be a part of this region’s history. Based in Texas, Dexon Technology US was founded in 1996 to bring Dexon’s in-line inspection expertise to meet the ongoing infrastructure challenges in the US and abroad.  
Dexon has yet to operate directly in the basin but has extensive experience in the region's broader oil and gas infrastructure, operating in Texas, New Mexico, and Louisiana. 
As the Permian Basin continues to shape the energy landscapes, Dexon looks forward to opportunities to safeguard its infrastructure and continue to serve the broader pipeline networks.