U.S. Oil Production Growth

[dan_s]

U.S. to account for most world oil output growth over 10 years: IEA. Reuters.
The United States is expected to account for more than 80 percent of global oil production growth in the next 10 years and it will produce 30 percent more gas than Russia by that time, he International Energy Agency (IEA) said on Thursday. “This has implications on the oil markets, prices, trade flows, investment trends and the geopolitics of energy,” IEA head Fatih Birol said at a U.N. climate conference in Bonn. He said the United States, whose upstream energy industry has seen a resurgence with the development of fracking technology, would become the “undisputed leader of oil and gas production worldwide.”

In my opinion, the IEA is way too optimistic when it comes to U.S. production growth. I think we will see U.S. oil production over 10 million barrels per day, but I will be difficult to keep it there as rely on more and more high decline rate shale wells.

This is setting up a very bright future for the drillers and oilfield services sector in general.