Active industrial oil/gas well pump as a direct result of tracking under the Colorado desert sun. GRANDRIVER
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The U.S. shale drillers will continue to increase Oil production, this time, with the OPEC+
Improvements in drilling and fracking techniques amid a wave of corporate acquisitions will lead to an expansion in production, offsetting recent cuts in rig deployments, analysts at the Swiss-based bank wrote in a note titled “Underestimate US Shale at Your Peril.”
“Some expect U.S. shale oil to peak soon, and OPEC+ is hoping that will be the case, as it will allow the group to finally unwind supply cuts,” analysts led by Kim Foster wrote.
“But US shale could grow over the next three to four years,” they added.
400 Thousand Additional Barrels
Expectations of slowing U.S. shale oil growth were a factor in the recent decision by OPEC and its allies to gradually increase supplies to the market.
The note added that investors should be wary of “substantial” productivity gains that could extend U.S. production growth beyond current expectations.
U.S. shale fields are expected to increase production by about 400,000 barrels per day next year, with growth slowing after that, according to analysts.
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