Is the US still producing shale oil?

Is the US still producing shale oil?

According to GlobalData’s latest report, “Unconventional Production in the US Lower 48, H2-2021,” oil production from the U.S. Lower 48 (L48) shale plays has risen by 25% during May 2020 to February 2022. However, it is still around 8% below the pre-pandemic levels of 9.3 MMbpd produced in December 2019.

What is the future of shale oil?

Shale oil and gas production in the United States is already rising. The U.S. Energy Information Administration (EIA) estimates that crude oil production was 11.7 million b/d in November, and crude production could increase from 700,000 b/d to 900,000 b/d in 2022, according to various estimates.

Why are shale oil producers returning to existing wells?

U.S. shale oil producers are returning to existing wells and giving them a second, high-pressure blast to lift output for a fraction of the cost of a finishing a new well.

Should shale producers spend more profits on production growth?

A global oil shortage has triggered calls from U.S. President Joe Biden for shale producers to spend more of their profits on increasing output. But shale firms have been under pressure for years from shareholders to focus on returns rather than production growth.

Why invest in the Vaca Muerta shale?

The characteristics of the oil produced in the Vaca Muerta augment the attractiveness of investing in the shale formation. This is particularly so in a world where decarbonizing the economy and reducing pollution are priorities, thereby making it critical for energy companies to reduce their carbon footprints.

Will flat spending limit oil production in 2020?

U.S. oil production remains about a million barrels per day (bpd) below the 12.8 million bpd peak in early 2020. Limiting output is the rapid decline rate of shale wells, which can see production fall by 70% in their first nine months. Flat spending could restrain output to current levels.