The Crude oil and condensate production of United States of America attained a value of 11,528,773.43 bd in 2020
The indicator recorded a historical growth (CAGR) of 6.48% between 2017 to 2020, and is expected to grow by...
GlobalData projects the figure to grow at a CAGR of ...
Crude oil production in the US has been steadily increasing for the past five years and reached a significant amount in February 2020. Most of production growth in the country comes from shale resource plays, like Permian Basin, Eagle Ford, Bakken and Rocky Mountains. Horizontal drilling and fracking in these plays are picking up the pace and total share of unconventional production in the country increased in 2020.
However, due to the drop in energy demand caused by COVID-19 pandemic, production in the US fell from March to May 2020. In April 2020, West Texas Intermediate (WTI) price plummeted, as storage capacity in the country was quickly filling in. The biggest drop was observed in the Permian Basin where production plummeted as shale operators had to significantly reduce both their capital spend and production output. However, in the second half of 2020, prices started to slowly climb up.
Unfortunately, in mid-February 2021 another event created disruptions to drilling activities in the central part of the US. Many states, including Texas, were hit by severely cold weather causing frozen wells and pipelines. As a result, crude oil production during that month fell, while natural gas output plummeted significantly in the Permian alone. As temperatures started to rise, production in March 2021 almost recovered to January levels.
Despite quite significant increase in oil prices operators have been quite prudent in their capital spending and started building their strategies around high-return core assets. As a result, total rig count in the US has been quite sluggish in response to increase in WTI price. Nonetheless, there is a significant number of operators drilling in the Permian Basin, Eagle Ford, Bakken, and other shale plays. Companies were able to reach significant drilling and completion improvements, lowering break-even price of unconventional projects. Shale production in the country is expected to rebound to pre-pandemic levels by 2024.
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