Recently, international oil prices have continued to rise and have now reached the $80/barrel mark. This is not only the responsibility of the United States for printing money, but also the problem of OPEC+’s unwillingness to increase production. According to the current oil price trend, many institutions are already betting that oil prices will rise to US$100/barrel or even higher.
However, for the United States, which is already suffering from inflation, this is obviously the last thing it wants to see. Therefore, judging from the latest news, since OPEC+ refuses to increase production, the United States can only do it on its own.
The U.S. EIA (Energy Information Administration) stated that U.S. oil companies are currently increasing production. As the pace of production increase accelerates, U.S. crude oil production will hit a record high next year. The EIA said the country will increase production by 610,000 barrels per day in 2023 to 12.41 million barrels per day.
You know, the country’s all-time high in 2019 was 12.3 million barrels per day. If daily production is really increased to 12.41 million barrels from next year, it will hit a new high. Why are U.S. shale oil producers increasing production so aggressively?
EIA believes that this is because the current oil price is relatively high, and shale oil producers can gain more profits by increasing production, and on the other hand, they can also raise more sufficient funds to increase production. Judging from the current situation, there is no need to worry about lack of sales after the shale oil is produced.
EIA believes that U.S. oil demand will reach 20.92 million barrels per day in 2023, and global consumption may also increase to 102.3 million barrels per day. Therefore, if neither U.S. shale producers nor OPEC+ are willing to increase production, oil prices may be even higher next year.
Now, U.S. shale oil producers have started to increase production ahead of schedule, which will actually help them gain more market share in the subsequent competition with OPEC+. Finally, do you think that in this round of competition, American shale oil companies will gain the initiative again?
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