Many smart people thought U.S. oil production would fall off a cliff along with the crash in crude prices.
In reality, it hasn’t even come close to killing American production. The U.S. pumped 9.35 million barrels of oil a day in October, according to the latest government statistics available. That’s up from 9.13 million barrels in October 2014.
“Oil production from the U.S. is very resilient, particularly from shale production,” said Bielenis Villaneuva Triana, a senior analyst at Rystad Energy.
Official stats aren’t available yet for the end of 2015 but the Energy Information Administration estimates U.S. production slipped to 9.24 million in December. That’s hardly an all-out collapse.
All of this matters because the 70% plunge in oil prices since mid-2014 has been fueled by an epic supply glut. The oversupply has largely been created by skyrocketing U.S. output, which surged from just 4.6 million barrels per day in October 2005 to a high of 9.69 million last year, according to the EIA.’
To learn more, please check out the full article below.
Cheap prices fail to kill U.S. oil boom
About The Author
Anatoly Vanetik is a Venture Capitalist, Oil and Gas Expert, and Businessman in Orange County, California. He is the President and Chairman of the Board of Directors at Vanetik and Associates, a popular venture and consulting firm in the resource industry that Anatoly began. He brings many years of professional experience in the engineering and energy industries. Outside of his career, Anatoly Vanetik is passionate about animal welfare and art history, and maintains monthly blogs about each one.