Rising U.S. shale-oil output threatens OPEC’s production pact – IOTW Report

Rising U.S. shale-oil output threatens OPEC’s production pact

MarketWatch: The oil market got a stark reminder Tuesday that rising oil production in the U.S. could upend efforts by major producers to bring global supply and demand for crude back in to balance.

Just ahead of the settlement for oil futures prices CLG7, +0.34%  on the New York Mercantile Exchange on Tuesday, the Energy Information Administration released a report on drilling productivity—forecasting a monthly rise of 41,000 barrels a day in February oil production to 4.748 million barrels a day.

“That is bearish for oil and a concern for [the Organization of the Petroleum Exporting Countries,” said James Williams, energy economist at WTRG Economics, pointing out that the volume of new oil per rig has climbed because of gains in efficiency.

“If maintained, the expected February production gain means production from the shale plays will be up at least a half million barrels per day by the end of the year,” said Williams.  MORE

5 Comments on Rising U.S. shale-oil output threatens OPEC’s production pact

  1. A natural resource required for progress and development of mankind lies under terra firma of Middle Eastern countries, who’s native peoples had no use for, nor methods/technology to extract and/or refine the product.
    Had the developing world no need for oil, the A-raabs would still be living in tents, unaware of the value of the black goo under their feet. Instead they benefit with a Benz or Maserati in every garage, act as power brokers in controlling economies and wars, and still hate us.
    It’s a fact, as a country, we have the resources to become energy independent, but the Bilderberg Group will never allow it, and so it goes…..

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