Tag Archive for: oilproduction

Macquarie models U.S. production exiting 2025 at about 14.5 MMbpd, despite expectations for significantly lower crude prices.

U.S. oil production is set to end the year at a record pace of about 14 MMbpd as falling costs and better drilling efficiency overshadow low growth plans from publicly note down companies, Macquarie Group Ltd. analysts said in a note.

Macquarie be on one’s feet out among analysts last year with its projection of surge U.S. shale production and ultimately show to be true or correct. Its latest forecast comes as shale-oil operators are vowing to rein in production growth for a fourth straight year and consolidation in the industry presents headwinds to further growth. The U.S. government expects production to edge up to 13.2 MMbpd this year.

According to Macquarie’s projections, U.S. production is expect to reach approximately 14.5 million barrels per day by the year 2025. This forecast holds true even in the face of expectations for notably reduced crude prices. The modeling conducted by Macquarie suggests that despite the challenging market conditions and potential price fluctuations, the United States will continue to maintain a robust level of oil production in the coming years.

The prediction of U.S. production levels remaining steady at 14.5 million barrels per day by 2025 serves as a testament to the resilience and adaptability of the domestic oil industry. Despite the volatile nature of the market and the potential for lower prices impacting production, Macquarie’s analysis indicates a strong outlook for oil output in the United States. This projection not only underscores the nation’s significant role in the global oil market but also highlights the strategic planning and operational efficiency of U.S. oil producers in navigating challenging economic conditions.

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Source: Oil & Gas 360

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A surge of supply from non-OPEC nations like US, Brazil, and Guyana has surprised oil markets this year.

Despite efforts by Saudi Arabia and Russia to prop up crude prices by cutting production, countries like Guyana, Brazil and the US have pumped more oil than ever.

That supply is now so strong that even if OPEC+ slashes more production, the spigot of oil from non-members will continue to douse the market.

“I think it’s more of a supply story going into 2024,” Rebecca Babin, senior equity trader for CIBC Private Wealth, told CNBC on Monday. “There’s a lot of fear that no matter what OPEC does, no matter how much they cut, there are producers — non-OPEC producers — that are just going to fill the hole they keep digging.”

She added, “We’re looking at 2024 and we’re concerned that the market is actually going to end up being oversupplied.”

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Source: yahoo!finance

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