Tight Oil production in U.S.

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The peak production rate for tight horizontal oil was 7.28 million bbls/day reached in November of 2019. That corresponded to 12.9 million bbls/day of total production. According to Art Berman, an oilpatch veteran who often contributes to oilprice.com , 600 drilling rigs are required to maintain tight oil production at 7 million bbls per day. The current rig count for rigs drilling horizontal wells is 165 and tight oil production has fallen to 6.2 million bbls/day. Unless the rig count takes off, U.S. oil production is expected to fall to 8 million bbls per day by next summer. A large increase in the oil price is required to keep that from happening.
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Of course production is global. When Saudi and Russia recently flooded the market, prices crashed. Even if the US rig count is very low, the global supply numbers will keep prices down. Also, there might soon be new policies hostile to US production in 2021.
 
Originally Posted by gfh77665
Of course production is global. When Saudi and Russia recently flooded the market, prices crashed. Even if the US rig count is very low, the global supply numbers will keep prices down. Also, there might soon be new policies hostile to US production in 2021.


Let's hope not.
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I think things are picking up. Listening to the news this morning on the way to work, Continental, a drilling corporation here in Oklahoma, announced they are opening up 50% of the wells they shut down when all this hit the fan. Good news for the local economy. Lots of people work for them.
 
"Tight horizontal well" means fracking, right? They would always be the first to shut down since its more expensive.
 
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Originally Posted by Miller88
Well if we use less now I guess that means we're less likely to run out sooner?


And we're leaving it under our dirt where it's protected by our army. Sounds ok to me.
 
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