Record Breaking Oil Production in the USA

[SubLGT]

https://www.greencarcongress.com/2023/12/20231221-oil.html

The United States heads into the New Year producing more oil than any country in history, leading strong non-OPEC+ supply growth that will more than meet growing global demand, according to the latest oil markets outlook by S&P Global Commodity Insights.

US total liquids production for Q4 2023 stands at 21.4 million barrels per day (b/d), of which 13.3 million b/d is crude and condensate with the balance composed of natural gas liquids and biofuels. Both totals are global records

 

[fantastic]

Good, less opec+ market share.

 

[goingplacesanddoingstuff]

Yep, and about 40% of it is the Permian. Operators have generally found an efficient set of processes for shale lately which is yielding good returns and maintaining capital discipline.

Prime acreage won’t last forever in the major basins, though. We have a few years before breakevens move higher. There will be further consolidation and exploration in fringes and new basins.

Don’t forget that OPEC can shut it all down by harming their own bottom line though. With the middle east troubles, who knows what’s in the cards. Saudi can shut it all down if they don’t like our Houthi policy, for example.

 

[SubieRubyRoo]

Good, less opec+ market share.

It would be good, but exports are also at all time highs, IIRC. Meaning, the oil companies are raking in the profits, but we’re not reaping all the benefits that just heating the number would have you believe.

 

[OneLonelyBurrito]

It would be good, but exports are also at all time highs, IIRC. Meaning, the oil companies are raking in the profits, but we’re not reaping all the benefits that just heating the number would have you believe.

A lot of U.S. refineries also aren't designed to handle US crude. So it doesn't make sense for them to buy the type of crude oil the U.S. produces.

 

[4WD]

A mile or two of horizontal is becoming common with three within reach …

 

[BMWTurboDzl]

Don't forget the price cap on Russian crude at around $60/pbl and more importantly the fact the Russian crude production has slowed significantly.

 

[Danno]

Don’t forget that OPEC can shut it all down by harming their own bottom line though. With the middle east troubles, who knows what’s in the cards. Saudi can shut it all down if they don’t like our Houthi policy, for example.

I know this is a specific example but I really doubt Saudi's would do that due to US Houthi policy.

 

[nate379]

Been busy here with Pikka and Willow projects.

 

[BMWTurboDzl]

I know this is a specific example but I really doubt Saudi's would do that due to US Houthi policy.

+1 considering that the Houthis are the aggressor and have been involved in a civil war with Saudi for years.

 

[UncleDave]

Traffic in the straight can be pretty easily divided into two types.
Countries that use the petrodollar standard.
Countries that do not.

Not sure what our incentive is to lift a finger to protect the latter ?

 

[BISCUT]

Don't forget the price cap on Russian crude at around $60/pbl and more importantly the fact the Russian crude production has slowed significantly.

Add to this China's decline and the decreased thirst for oil. Although still high it is not what it was. Russia has a quasi-limited customer base.

 

[fantastic]

Just seen this in the news. Not looking great for opec right now.
https://www.msn.com/en-us/money/markets/angola-says-it-is-leaving-opec/ar-AA1lQCFN?OCID=ansmsnnews11