shale oil production is growing in the US amid a decline in OPEC+ exports – Kommersant

American drilling companies operating in the Permian Basin in West Texas and the Bakken shale fields in North Dakota increased shale oil production to record levels amid the decision of OPEC+ countries to reduce oil exports, reports Bloomberg.

According to the agency, oil production is now ahead of American forecasters’ estimates by 0.8 million bpd and reaches 13.3 million bpd. Bloomberg reports that analysts expected U.S. oil production to rise modestly this year due to pledges by U.S. oil companies to rein in costs and focus on returning cash to shareholders. The agency notes that forecasters have underestimated the role of private companies that do not report financial results every quarter.

At the end of November, OPEC+ countries came to the agreement, according to which Saudi Arabia extends the voluntary reduction in oil exports by 1 million barrels per day, Russia increases the reduction to 500 thousand bpd, and the rest of the organization countries collectively reduce oil exports by 500 thousand bpd. The agreement is valid until March 2024.

Read more about the US oil market in the material “Time to Collect Barrels”.

Erdni Kagaltynov