Oil producers in the US are helping to counter shortages in the supply of crude oil by reaching record levels of production, despite deploying fewer drilling rigs.
The number of drilling rigs in operation is at its lowest level for around 18 months, yet Rystad Energy estimates that US crude oil production in September will come in at an average of around 13 million barrels per day (bpd). This matches the previous monthly record in November 2019, just before the COVID-19 pandemic started to affect demand and push oil prices down, forcing many US operators to pare back production. Big producers like Chevron and ExxonMobil have also been reporting record levels of production for the second quarter.
Production in the US shale patch has been slow but steady, with the focus tending to be on keeping capital spending down while maximising efficiency through the drilling of longer wells. What’s more, Rystad Energy has analysed pipeline flows, regulatory filings, and satellite imagery, coming to the conclusion that crude oil production could be as much as 13.1 million bpd in October. Pipeline company executive Tony Chovanec said about the mood in the industry:
“Watch what the producers are saying during the second quarter. No one has a bad story. Everybody is very, very upbeat.”
Oil producers such as Chevron and ExxonMobil also make lubricants like Texaco Meropa and Mobil Velocite, which we’re proud to offer here at TrAchem. Speak with our helpful team to learn more about these and other lubricant products.