(Bloomberg) -- Crude oil production from the prolific Permian basin of West Texas has topped estimates and may grow by an annual rate of 600,000 barrels a day over the next several years, according to pipeline giant Plains All American Pipeline LP.

“North American energy supply will continue to play a key role in meeting global demand growth, and the Permian is positioned to drive a vast majority of U.S. production growth,” Chief Executive Officer Willie Chiang said Wednesday in a conference call with analysts. 

The Houston-based company said crude-oil volumes transported on its Permian pipeline system jumped 26% in the fourth quarter from a year earlier, exceeding analysts’ estimates. Plains All American, which owns 18,700 miles of conduits across the U.S. and Canada, expects to move nearly 5.3 million barrels a day of oil in the Permian this year, up 19% from last year. 

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