By Richard Rostad, analyst, Oil & Gas 360

The Q4 2018 downturn in oil prices has made upcoming U.S. crude oil production growth a major uncertainty for markets. Companies have been announcing plans to scale back drilling activities for 2019, but what will the overall effect of the reduction in drilling be?

How much can activity drop before a lack of drilling causes a decrease in overall output? Remember the 2014-2016 downturn? That stopped seven years of production growth in its tracks, and American oil output declined from 2015 to 2016.
Only 558 rigs are needed to replicate 2014’s new production
The efficiencies companies have achieved in the past four years mean that a downturn in oil price will have less of an effect on overa...


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