Diamondback Energy announced a ramp-up of Permian production, targeting 520,000 barrels per day. The move is aimed at countering a global oil deficit that has shifted the market from surplus to shortage.
The company cited a sharp shift from a projected supply-demand surplus to a historic global deficit, with global production falling more than 8 MMbpd in March and declining further in April. Prices for physical delivery of crude and refined products have risen, and some regions are already experiencing shortages, the letter said.
The company plans to bring incremental barrels to the market immediately by working down its drilled-but-uncompleted (DUC) inventory to keep output above 520,000 bopd—about 3% above its original 2026 guidance. To support the increase, it will run five completion crews for the remainder of the year and add two to three rigs to sustain future activity and preserve operational flexibility.
The letter noted that the imbalance is the catalyst to begin to grow production, and that prices for physical delivery have increased even further. It also said that the company is bringing incremental barrels to the market immediately.
By deploying additional crews and rigs, Diamondback Energy positions itself among U.S. shale producers to capture higher prices amid supply disruptions, while maintaining capital discipline and operational flexibility.
