Devon Energy Corp. grew production in the Permian Basin in 2021 and expects to further ramp up in the prolific oil and natural gas region amid lofty crude prices this year. However, executives said they will hold the line on overall output in 2022, as uncertainty about long-term global energy needs outshine current surges in crude demand.

U.S. oil prices this month reached seven-year highs, rising about 20% this year and recently trading near $95/bbl. Prices have nearly doubled since early last year. Crude consumption is steadily rising in North America, Asia and Europe as economic momentum mounts and travel rebounds amid coronavirus vaccine campaigns, galvanizing demand for gasoline, diesel and jet fuels derived from oil.

In previous cycles, shale producers such as Devon would...