U.S. is completing more oil wells than are being drilled

[dan_s]

DUCs drop 27%. The number of drilled but uncompleted wells (DUCs) in the U.S. shale patch has declined by 27 percent since the peak in June 2020, the Energy Information Administration (EIA) has estimated. < As I mentioned in yesterday's podcast, even though we are completing more wells than we are drilling in the U.S., oil production has declined from March and is likely to remain flat all summer. IMO it will take 450 rigs drilling for oil before we see a steady rise in U.S. oil production.

Russia struggling to boost oil production. Russia is having trouble reversing an oil production decline it implemented under its agreement with OPEC+. Russia has been producing some 10.42 million bpd of crude oil and condensates since the start of the month, which is lower than May’s average of 10.45 million bpd. < Also as mentioned in my podcast. OPEC+ may have 5 or 6 million bpd of oil production capacity, but only ~2 million bpd can be brought to the market quickly. Above ground oil inventories will continue to fall.