From west Texas and eastern New Mexico north to North Dakota, oil producers are increasing their production from fewer rigs, and it has the attention of OPEC and the business observers.
The ramped-up production is more than what the analysts expected and now it’s at a record pace, even as OPEC+ nations attempted to lower their production with hopes of slowing price declines.
As Bloomberg recently reported, US government forecasters mader a prediction last year that oil production nationally, would average 12.5 million barrels a day. But that figure is up to 13.3 million a day and gives support to the premise that the U.S. shale fields have more than enough oil power to confuse the efforts of OPEC+.
Fewer oil and gas rigs are being used this year to make the big strikes in crude oil production in the U.S. Witness what’s happened in Oklahoma as the number of rigs a year ago totaled 69 while this week, Baker Hughes Co. reported the total was 38. Nationally, the count is 623 compared to one year ago when there were 776 rigs. That’s a decline of 153 rigs, yet producers are turning out more crude oil.
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