
Sophie Velez
Global Warming Solutions Intern
From coral reefs millions of years ago to the nation's largest oil and gas producer, the short story of the Permian Basin
Global Warming Solutions Intern
Executive Director, Environment Texas Research & Policy Center
The Permian Basin is a sedimentary region in West Texas and southeastern New Mexico known for being the largest oil-producing basin in the United States, producing 43% of the nation’s oil and 22% of its methane gas annually. Alarmingly, it is also the largest source of oil and gas pollution on the planet, producing more than 200 million tons of greenhouse gas emissions in 2022 alone, according to pollution tracking consortium Climate TRACE. The basin deposits are some of the thickest in the world, rich in petroleum, natural gas, and potassium – a result of biomass trapped for hundreds of millions of years.
Despite being named after the Permian Period occurring around 200 million years ago, the basin was created an estimated 1.3 million to 850 million years ago by Precambrian tectonic events. The area was then submerged under water, as was most of the Texas landscape around 265 million years ago, home to a thriving coral reef. The organisms that once inhabited the ocean covering the Permian Basin have now become plentiful deposits of fossil fuels, formed by the pressure, heat, and aging of the hydrocarbons over time.
Although it is now one of the most extensively researched and profitable geologic regions in the world, it was not initially viewed this way. In 1855, the first Permian Basin wells were drilled for freshwater and smaller amounts of crude oil collected slowly and with much difficulty. In the absence of effective technology, the area was considered a “graveyard” by oil and gas developers; that is, until the discovery and drilling completion of the Santa Rita #1 well in 1923. Constantly evolving drilling technology was the essential driver of the discovery, development, and redevelopment of the Permian Basin.
More recent advances in hydraulic fracturing and horizontal drilling have rapidly increased production and output, polluting the environment in an unprecedented manner. The latest data collected in March of 2023 reports an output of 5.7 million barrels of crude oil per day, a number that has been increasing each year since 2010. According to the Energy Information Administration, the number of new horizontal wells increased from 350 in 2010 to 4,524 in 2021.
Oil and gas production in the Permian skyrocketed between 2010 and 2023Photo by Federal Reserve Bank of Dallas | Public Domain
This disturbing increase in production runs counter to warnings from the International Energy Agency that to reach net-zero carbon emissions by 2050 and avoid the worst impacts of climate change, investment in new oil and gas projects must stop immediately.
Projections show that demand for oil and gas will decline as electric vehicles, solar energy, battery storage and other clean energy technologies continue their massive growth. But will the decline happen fast enough to avoid catastrophic climate change?
We’ll still be dependent on oil and gas for years to come, but Texas should act immediately to design a managed decline for the industry, in the Permian and across the state, that helps transition the state to clean energy sources and reduces environmental and health damage from the remaining activities of the petroleum industry.
Global Warming Solutions Intern
As the executive director of Environment Texas, Luke is a leading voice in the state for clean air and water, parks and wildlife, and a livable climate. Luke recently led the successful campaign to get the Texas Legislature and voters to invest $1 billion to buy land for new state parks. He also helped win permanent protection for the Christmas Mountains of Big Bend; helped compel Exxon, Shell and Chevron Phillips to cut air pollution at four Texas refineries and chemical plants; and got the Austin and Houston school districts to install filters on water fountains to protect children from lead in drinking water. The San Antonio Current has called Luke "long one of the most energetic and dedicated defenders of environmental issues in the state." He has been named one of the "Top Lobbyists for Causes" by Capitol Inside and received the President's Award from the Texas Recreation and Parks Society for his work to protect Texas parks. He is a board member of the Clean Air Force of Central Texas and an advisory board member of the Texas Tech University Masters of Public Administration program. Luke, his wife, son and daughters are working to visit every state park in Texas.