U.S. Oil Production Set to Hit Monthly Record - The Wall Street Journal
U.S. Oil Production Set to Hit Monthly Record
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A horizontal drilling rig near Midland, Texas. (Nick Oxford/Reuters)
American crude production is on track to hit a record 13 million barrels a day in September, according to Rystad Energy projections, matching the U.S. oil patch’s highest monthly output before the pandemic cratered demand for fuel.
The oil industry returned to pre-Covid-19 levels slowly as well productivity plateaued and Wall Street pushed companies to prioritize profits. Still, firms are grinding out incremental gains in part through new technology that allows them to drill horizontal wells farther and faster through shale rock.
Rystad expects domestic drillers to pump slightly more oil in October and average between 13 million and 13.1 million barrels per day in the fourth quarter, according to an analysis of pipeline flows, regulatory documents and satellite imagery.
Related Knowledge Center: ENERGY BASICS: petroleum
While electric-powered vehicles may be the ride of the future, oil remains at least for now the dominant fuel for transportation around the world. And after a period of time at the end of the 20th century when oil was subject to wide fluctuations in price, new supplies in North America as a result of non-conventional recovery techniques have helped stabilize prices.