First Time in 50 Years: US Oil Production to Hit 10 Million Barrels a Day

Published January 31st, 2018 - 12:14 GMT
Sometime in 2018, the US oil industry will do something it has not done in almost 50 years - produce more than 10 million barrels of oil in one day. (AFP)
Sometime in 2018, the US oil industry will do something it has not done in almost 50 years - produce more than 10 million barrels of oil in one day. (AFP)

Sometime in 2018, the US oil industry will do something it has not done in almost 50 years - produce more than 10 million barrels of oil in one day.

Shale oil production has transformed the industry in recent years and with crude oil prices out of their two year slump, shale producers have been ramping up output.

Production from the seven major shale fields has risen the past 13 months to record highs and is forecast to hit 6.55 million barrels a day in February.

After peaking at 9.78 million barrels a day in 2017, overall US oil production is expected to hit 10.30 million barrels a day this year, according to the U.S. Energy Information Administration.

Shale oil, which is extracted from rock through a process known as fracking, is more expensive to produce than conventional crude oil, which is pulled up from underground reservoirs.

Shale oil is expected to boost American production for years to come, with the US overtaking Saudi Arabia and Russia, now the world's top producers.

The top major players in US shale oil are Pioneer Natural Resources (PXD), Devon Energy (NYSE:DVN), EOG Resources (NYSE:EOG) and Whiting Petroleum (WLL).


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