As 2025 comes to a close, Permian Basin oil and gas news has been dominated by a few clear themes: record‑high production, signs of a future plateau, growing attention on produced water and emissions, and major investments in grid and infrastructure to support continued development.
For operators, the question is simple: What do these headlines mean for drilling plans in 2026? For a Permian‑focused drilling contractor like Norton Energy Drilling, the answer comes down to one core idea: doing more with fewer, higher‑performing rigs—safely and efficiently.
Below is a brief roundup of key 2025 news items, with direct links, and how we see them from the rig‑line.
Want to understand the economics driving Permian drilling decisions? Explore how operators evaluate drilling projects: Drilling Economics
1. Production Near a Peak, but the Permian Stays the Engine
One of the biggest Permian Basin oil and gas news stories of 2025 is the growing discussion about “peak Permian” production.
- Reuters reported that Permian crude output is expected to peak around December 2025 but still keep the basin as the dominant engine of U.S. oil supply for years to come:
https://www.reuters.com/markets/commodities/energy/permian-retain-us-oil-crown-even-after-hitting-peak-2025-12-11/
- The U.S. Energy Information Administration (EIA) projected U.S. crude production to grow through 2025, driven largely by the Permian, and then flatten and slightly decline in 2026:
https://www.eia.gov/todayinenergy/detail.php?id=66844
What this means for operators and drilling:
- The basin is maturing into a high‑efficiency manufacturing phase—long horizontals, pad development, disciplined capital.
- Rig counts don’t have to rise dramatically for production to stay strong. Instead, each rig has to deliver more, with better consistency and less non‑productive time.
- Operators are leaning toward fewer, higher‑spec rigs that can handle deeper wells and extended laterals.
At Norton Energy, this is exactly where our hybrid and AC rigs capable of drilling to 22,500 feet are designed to operate: in a world where each rig must carry a larger share of the development plan.
High-spec rigs are essential for modern Permian development. Learn about the different types of rigs and their capabilities: Types of Oil Drilling Rigs
2. Produced Water, Groundwater, and New Disposal Approaches
Another major 2025 theme in Permian Basin oil and gas news is produced water and its long‑term management.
- E&E News (POLITICO) highlighted how rising volumes of produced water in West Texas are stressing traditional disposal models, contributing to pressure issues, shallow injection concerns, and groundwater risk debates:
“Fracking waste threatens Permian Basin water supplies, imperils oil industry plans”
https://www.eenews.net/articles/fracking-waste-threatens-permian-basin-water-supplies-imperils-oil-industry-plans/
- Bloomberg reported that Texas regulators are evaluating permits for companies to treat Permian Basin wastewater and discharge it into the Pecos River, a potential shift toward large‑scale treatment and reuse:
“Texas Mulls Allowing Oil Companies to Pump Treated Fracking Water Into Rivers”
https://www.bloomberg.com/news/features/2025-12-11/texas-mulls-allowing-oil-companies-to-pump-treated-fracking-water-into-rivers
What this means from a drilling‑contractor perspective:
- Produced water handling is no longer just a midstream or disposal issue; it influences field design, pad locations, and logistics.
- Operators are under more pressure to demonstrate responsible water management and avoid operational disruptions from disposal constraints.
- Reliable drilling performance—hitting targets on schedule with minimal rework or wellbore issues—helps keep produced water volumes predictable for planning and infrastructure.
Norton Energy supports this environment by focusing on consistent, high‑quality boreholes and predictable well times, enabling operators to better coordinate completions, water handling, and disposal or reuse plans.
Managing produced water challenges in your Permian operations? Learn how proper planning and infrastructure coordination can help: Water Management in Oil and Gas
3. Air Quality and Ozone Pressures in the New Mexico Permian
Regulatory and public attention on emissions also featured in 2025’s Permian Basin oil and gas news.
- The Center for Biological Diversity and other groups called on New Mexico to crack down on illegal air emissions in the Permian portion of Lea and Eddy counties, citing ozone concerns and data on reported pollution from major operators:
“New Mexico Urged to Crack Down on Oil Giants Driving Ozone Crisis”
https://biologicaldiversity.org/w/news/press-releases/new-mexico-urged-to-crack-down-on-oil-giants-driving-ozone-crisis-2025-12-16/
While this news is focused on New Mexico, it reflects a broader regional trend: more scrutiny on emissions, leak detection, and compliance across the entire Permian.
Implications for drilling programs:
- Operators increasingly value drilling partners who maintain strong safety and environmental practices on location.
- Reliable rig housekeeping, fuel management, and adherence to operator standards help support overall ESG performance.
- As regulators and stakeholders look more closely at basin‑wide impacts, choosing disciplined, safety‑focused contractors becomes a risk‑management decision as much as a technical one.
Norton Energy’s mission is to deliver top‑tier drilling services with safety, efficiency, and innovation at the core—which aligns with operators’ need to minimize operational and environmental risk.
Safety and environmental compliance are critical in today’s Permian. Discover the top safety practices for drilling operations: Oil Drilling: Ultimate 7 Safety Tips
4. Grid Expansion to Power the Next Phase of the Permian
One less obvious but important storyline in 2025 Permian Basin oil and gas news is the electric grid build‑out needed to support both oil and gas operations and new data center loads in Texas.
- The Texas Tribune reported on a proposed 765 kV high‑voltage transmission line that would help move power to West Texas, including electrifying oil and gas drilling operations in the Permian Basin:
“Residents protest high-voltage power lines that could skirt Dinosaur Valley State Park”
https://www.texastribune.org/2025/12/16/texas-state-park-energy-transmission-line/
The project has sparked local opposition due to routing near Dinosaur Valley State Park, but it’s part of a much larger statewide push to expand the grid as electric demand is projected to nearly double by 2030.
Why this matters for drilling:
- More rigs and facilities are moving toward electrified operations, improving efficiency and lowering emissions compared with purely diesel‑based setups.
- Grid reliability and new transmission corridors will shape where and how operators plan future large‑scale development programs.
- Drilling contractors must be comfortable working with hybrid power setups, variable fuel strategies, and site‑specific power constraints.
Norton Energy’s hybrid and AC rigs are well‑suited to work in this evolving power environment, supporting operators who are pursuing electrification, fuel efficiency, and lower emissions across their operations.
Digitalization and automation are transforming drilling efficiency. See how technology is shaping the future of operations: Digitalization and Automation for Oil Drilling
What 2025’s News Signals for 2026 Drilling Plans
Taken together, 2025 Permian Basin oil and gas news points to a clear operating landscape for 2026:
- High production, moderated growth: The basin remains the core of U.S. oil, but we are shifting from rapid expansion to highly optimized development.
- Fewer, more capable rigs: Operators will continue to favor high‑spec, reliable rigs that can drill deeper and longer while reducing flat time.
- Stronger focus on water, air, and power: Produced water management, emissions, and grid capacity are now front‑page issues, not background noise.
- Value on regional expertise: Understanding the realities of Permian geology, infrastructure, and regulations is increasingly important when planning multi‑year programs.
Facing operational challenges in the Permian Basin? Learn about the key obstacles and how to overcome them: Key Challenges in Permian Basin Drilling Operations
Norton Energy’s Role in the Next Phase of the Permian
Norton Energy Drilling is a Texas-based drilling company focused on the Permian Basin, offering:
- Hybrid and AC rigs capable of drilling to depths of up to 22,500 feet
- Customized rig solutions tailored to specific operator and project needs
- A strong culture of safety, efficiency, and innovation, aligned with the basin’s new, more disciplined phase
As operators respond to the latest Permian Basin oil and gas news—from production outlooks and water issues to grid expansion and environmental expectations—Norton Energy is positioned to help them do more with less, without compromising on safety or performance.
If you’re planning your 2026 Permian Basin drilling program and want to discuss how our rigs and regional expertise can support your next phase of development:
Contact the Norton Energy Drilling Team to discuss your next Permian project.
Choosing the right drilling services partner matters. Understand what to look for in a drilling contractor: Drilling Services for Oil and Gas
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