CLEVELAND, March 7, 2018 /PRNewswire/ -- According to updated estimates released by the US Energy Information Administration (EIA) last week, monthly US crude oil production broke a 1970 record in November of last year. In that month, US crude oil production reached 10.057 million barrels per day, just surpassing the previous record of 10.044 million barrels per day set in November 1970.
This record is expected to be broken again this year. The EIA, as part of its short-term energy outlook, estimated that US production of crude oil averaged 10.3 million barrels per day in February. Moreover, it forecasts that the US will average 10.7 million barrels per day for all of 2018. This would exceed the previous annual average record of 9.6 million barrels per day set in 1970.
The increase in production follows a tumultuous period in the US oil and gas industry, which began with the oil price collapse in 2014. Some in the industry are questioning how much longer output can continue to grow. The increase in production per well is due to a variety of innovations in drilling and completion techniques.
According to Freedonia Group Analyst Dan Debelius, "The oil price collapse pushed operators to refine their unconventional drilling and completion processes and improve cost efficiencies. As a result, unconventional wells are now completed with longer laterals and higher volumes of proppant, producing more complicated fractures. Moreover, wells are being completed with multiple laterals and pads are being drilled with multiple wells, further shifting the bottom line. Added to more efficient and accurate drilling in profitable plays in Texas and Oklahoma, these techniques have increased production rates and lowered breakeven costs."
See the Energy & Petroleum industry page for more details.
Another Freedonia Group Analyst, Minor Cline, adds, "Improvements in drilling fluids and chemicals have also bolstered profitability. Advanced additive packages that are tailored to meet the challenges of a particular play can reduce rig time dramatically and lower drilling costs. Increased well complexity is also placing greater demands on drilling fluids, making advanced additive packages particularly attractive to drillers."
See the Drilling Fluids & Chemicals study page for more information: https://www.freedoniagroup.com/industry-study/drilling-fluids-chemicals-market-in-the-us-by-product-and-location-3515.htm
About The Freedonia Group – The Freedonia Group, a division of MarketResearch.com, is a leading international industrial research company publishing more than 100 studies annually. Since 1985, we have provided research to customers ranging in size from global conglomerates to one-person consulting firms. More than 90% of the industrial companies in the Fortune 500 use Freedonia Group research to help with their strategic planning. Each study includes product and market analyses and forecasts, in-depth discussions of important industry trends, and market share information. Studies can be purchased at www.freedoniagroup.com and are also available on www.marketresearch.com and www.profound.com.
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SOURCE The Freedonia Group
