(Bloomberg) -- Oil output in America’s most prolific shale patch is getting closer to levels seen before the pandemic-driven market crash. 

While total production in the U.S. is still lagging, the Permian Basin of West Texas and New Mexico is increasing output to an average 4.826 million barrels a day in October, according to a U.S. government report. That’s close to a revised 4.913 million barrel-a-day record set in March 2020, just before the pandemic unleashed widespread demand destruction globally, triggering production shutdowns and bankruptcies across the country. 

Production has been rising with benchmark U.S. crude prices now at seven year highs, underpinned by a severe supply deficit. 

The Permian has low breakeven production costs, high rates of productivity, and it’s best positioned to recover even though total U.S. crude production is still down. 

Private drillers in the basin have been in the best position to capitalized on the surge in oil prices, ramping up volumes steadily, while public companies are under pressure to keep spending in check. 

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