The U.S. is predicted to break a new record in oil production this year, with current production at 12.4 million barrels per day, primarily due to increased output in tight oil and shale gas regions.
was that the U.S. would set a new annual oil production record this year. As we approach the midpoint of the year, this prediction is still tracking toward being accurate. from the Energy Information Administration shows current U.S. oil production to be 12.4 million barrels per day . That’s an increase of 400,000 bpd from a year ago, but still short of the 13.0 million bpd level reached in November 2019. Nevertheless, year-to-date oil production is running ahead of the record 12.
The tight oil and shale gas regions continue to be the primary driver of rising U.S. oil and gas production. The Permian Basin has reached an all-time high of 5.8 million bpd, out-producing even Saudi Arabia’s massive Ghawar oilfield. However, production gains in the Permian have slowed in recent months, with new wells just offsetting the production decline in legacy wells., the number of wells drilling for oil in the U.S. has declined by 5% since last year.
This means that production increases are primarily being driven by finishing previously drilled wells. Production may be able to increase a bit more as the DUC inventory continues to decline, but the rig count will likely have to increase soon for oil production to increase much from current levels.The Strategic Petroleum Reserve remains a concern, as the current inventory is at the lowest level since 1983.
Of course, much of this activity is being driven by price. Oil prices have declined from $120 a barrel at this time last year to just under $70/bbl today. In turn, average retail gasoline prices have declined from $5.11 a gallon a year ago to $3.71 a gallon at present. Gasoline prices have returned to about the level they were at prior to Russia’s invasion of Ukraine.
What happens in the second half of the year will largely depend upon Saudi Arabia and OPEC. They are already signaling that they feel like pricing power has shifted back in their favor. Indeed, with a reduced SPR inventory, the U.S. doesn’t have a lot of tools available for fighting an oil price surge if Saudi production cuts continue.
Brasil Últimas Notícias, Brasil Manchetes
Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.
9 Surprising Roles You'd Completely Forgotten Jodie Comer Once PlayedAfter winning a Tony for her Broadway debut in Prima Facie, we're looking back at the rise and rise of the former Killing Eve star.
Consulte Mais informação »
Saudi Arabia’s Crude Oil Exports Dropped To A Five-Month Low In April | OilPrice.comSaudi Arabia saw its oil exports drop to a five-month low in April, the month before its first voluntary cuts began in May.
Consulte Mais informação »
Labour Party Vows To Make The UK A Clean Energy Superpower By 2030 | OilPrice.com“We will cut bills, create good jobs across the whole of the UK, and deliver energy security,” Starmer said, adding that a surge in homegrown renewable resources would make Britain less dependent on hostile regimes, including Putin’s.
Consulte Mais informação »
India’s Oil Demand Set For Record High Despite Dipping In April | OilPrice.comIndia’s crude oil imports fell slightly in April from a month earlier and refinery intake dipped month-on-month, but on the following month of May, the world’s third-largest crude oil importer saw record fuel demand.
Consulte Mais informação »
China Expands Influence In Latin America Through Belt And Road Initiative | OilPrice.comChina's decade-old Belt and Road Initiative continues to drive significant infrastructure projects and boost trade with Latin America and the Caribbean.
Consulte Mais informação »
UK Manufacturing Sector Soars Thanks To Aerospace Boom | OilPrice.comThe UK’s manufacturing sector is set to perform better this year than previously predicted, as the country’s “extremely strong” aerospace helps to drive growth, a new report said today.
Consulte Mais informação »