Permian output could plateau sooner: Occidental CEO

Market: Crude oil, Natural gas
08/05/25

Oil production from the Permian basin could plateau sooner than expected if operators keep talking about reducing activity levels in the wake of lower oil prices, warned the chief executive of Occidental Petroleum.

Vicki Hollub said she previously expected to see Permian output growing through 2027, with overall US production growth peaking by the end of the decade.

"It's looking like with the current headwinds, or at least volatility and uncertainty around pricing and the economy, and recessions and all of that, it's looking like that peak could come sooner," Hollub told analysts today after posting first quarter results. "So I'm thinking right now the Permian, if it grows at all through the rest of the year, it's going to be very little."

Occidental is reducing the midpoint of its annual capital spending guidance for 2025 by $200mn on the back of further efficiency gains. The US independent also plans to trim domestic operating costs by $150mn.

"We continue to rapidly advance towards our debt reduction goals, and we believe our deep, diverse portfolio of high-quality assets positions us for success in any market environment," Hollub said.

Occidental closed asset sales of $1.3bn in the first quarter and has repaid $2.3bn in debt so far in 2025.

Occidental produced 1.4mn b/d of oil equivalent (boe/d) in the first quarter compared with nearly 1.2mn boe/d in the same period of last year.

By Stephen Cunningham

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