Tag Archives: US oil production

Regardless of the geology, climate policy and waning investor interest will likely result in a lot of oil being left in the ground.

Going forward, new production from the U.S. will be eight times larger than the next largest source of growth, which is Canada. In fact, the U.S. will add 1.5 times more oil and gas than the rest of the world combined.

The ballooning number of uncompleted wells has repeatedly fueled speculation that a sudden rush of new supply might come if companies shift those wells into production. The latest crash in oil prices once again raises this prospect. 

The depletion of tight and shale gas reserves in parts of the US at a faster rate, may lead to cost pressures down the road. If prices don't rise to offset those higher drilling costs then the US production will start declining.

Low oil prices seem to benefit most countries, even oil producers. As long as the price does not fall below the level that OPEC members can withstand, they still profit. For other countries, low energy costs should be beneficial to consumers and to most industries, especially the transport and refining industries.