From Seeking Alpha Editor
• Crude oil production from the U.S. reached a new all-time high of 13.2M bbl/day in September, according to data released last week, outpacing expectations and causing a big problem for OPEC+, which agreed last week to further output cuts in an effort to prop up faltering prices.
• The U.S. accounts for 80% of the expansion in global oil supply this year, according to the International Energy Agency, and its production is expected to grow by 850K bbl/day, well below the pace reached earlier in the shale revolution but much faster than analysts had forecast.
• The American supply juggernaut is "the main reason" why markets had not tightened as many expected, Rapidan Energy president Bob McNally told Financial Times.
• Scott Sheffield, CEO of top Permian Basin producer Pioneer Natural Resources (PXD) told FT he is "very surprised" by the growth, adding "there's a good chance we may reach 15M bbl/day within five years."
• Shale remains "relatively early in its life" in terms of the technological advances that could drive higher productivity, Chevron (CVX) chief technology officer Eimear Bonner said.
Many pundits including Adam Rozencwajg have spoken about major US shale basins rolling over with production peaking. Contrary to that thinking, it appears that even with lowered rig counts production is still growing which is indicative of technology improving productivity of wells. I personally know one of a private company, Neubrex Energy Solutions whose business is running fiber optics into casing as wells are drilled and have software to get real time date from every inch of the casing as wells are fraced, completed, and begin flow back. I believe the major companies have been quietly employing artificial intelligence for years achieving continual improvements up the learning curve to maximize completions, flow rates, and EURs. I have heard interviews of EOG's officals speaking about getting real time info available at a click from apps on their phones.