We learned this week that U.S. oil production hit a record high in November 2017, thanks to the shale boom in Oklahoma, Texas, Kansas, North Dakota and other oil-producing states.
U.S. crude production was 10.057 million barrels a day for the month, the highest amount on record on monthly data collected since 1920 according to the U.S. Energy Information Administration. Daily output dropped slightly in December, reaching 9.949 million barrels a day. But experts believe 11 million barrels will be reached sometime this year.
The government indicated so much oil has been produced that the U.S. is passing Saudi Arabia and closing in on Russia to be the world’s largest producer.
Oil prices dropped this week but were still above $60 a barrel and the prices have attracted more and more drillers to Oklahoma’s STACK and SCOOP and the Permian Basin in Texas and New Mexico. The country has the highest number of oil rigs since 2015.
International Energy Agency Director Fatih Birol said this week the explosive growth in U.S. oil output could extend beyond this year. It’s because of the advanced technology in horizontal drilling, fracking and shale development.
The surge has the Organization of Petroleum Exporting Countries to cut output, a move that sparked a surge of U.S. exports. Further, OPEC’s leader will meet on Monday in Houston with shale producers.