Diamondback Energy Inc. has forecasted that the Permian Basin, already the most productive oil field in the US, will also become the country’s largest natural gas play by the 2030s. The company, a major driller in West Texas and New Mexico, is preparing for this shift by strengthening ties with liquefied natural gas (LNG) players to secure future supply deals.
In a letter to investors on Monday, Diamondback Chief Executive Officer Kaes Van’t Hof outlined the company’s strategy to capitalize on the anticipated growth in natural gas production. The Permian Basin’s transition to a gas-dominated region is expected to unfold over the next decade, positioning it as a key player in the US energy landscape.
The move underscores the evolving dynamics of the energy sector, where the Permian Basin is set to expand its influence beyond oil. Diamondback’s proactive approach in building relationships with LNG companies highlights the industry’s focus on long-term supply agreements as demand for natural gas continues to rise.