Since crude prices cratered, no oil-producing country has eliminated as much production as the U.S.
After OPEC’s November 2014 decision to let the market set prices, the price of oil declined, yet U.S. oil production continued to gain temporarily, topping out at 9.6 million barrels a day in April. But since then, U.S. output has fallen by about a half million barrels a day, dipping to 9.1 million barrels a day in the latest weekly government figures. More declines are expected.
“Nowhere else in the world have we seen that type of swing down,” said Jim Burkhard, IHS chief researcher of global oil markets.
And this trend is projected to continue, according to the International Energy Agency and other energy industry market watchers.
U.S. shale players and the global energy industry descend on Houston this week for the 35th annual IHS CERAWeek energy conference and will hear directly from top OPEC officials on the policy that has helped drive oil prices down 70 percent from their highs.
[“Source-cnbc”]
