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U.S. Oil Production Is Skyrocketing

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United States daily oil output is surging in a new pace and even aiming to surpass global giants such as Saudi Arabia and Russia. At a time when the Organization of the Petroleum Exporting Countries or OPEC is facing a slowdown in oil production, U.S. is gearing up to claim for the top position in production. The higher contribution from U.S. is expected to keep oil prices low, in and around $50 per barrel.

The May production statistics in the U.S. showed that daily production climbed to a record 12.4 million barrels. The current projection for the year is for more than 13 million barrels per day. By the next year end the daily production might exceed 14 million barrels per day.

Earlier in 1960s U.S. has recorded daily field production of crude oil of 9.2 million barrels, while it declined slowly in the next decades. In 2008, daily production was only five million barrels per day. However, it gained back from 2009 onward to reach 9.35 million barrels per day in 2018.

The shale revolution, mostly based in and around Texas is hugely supporting U.S. to achieve new heights. The daily production from oil wells in Texas is targeted to surpass oil production of traditional oil producing countries such as Iran and Iraq.

The oil output in U.S. kept on increasing from last June. Advances in drilling technologies and reduction in drilling costs helped the country in a big way.

Four years back, U.S. lifted the ban on exporting crude oil and it exports oil to Europe, China as well as South America.

U.S. sanction has been hitting Iran and Venezuela, while regional issues in African nations like Libya and Nigeria were restricting oil production.

The OPEC was forced to reduce their output. They pumped 30.09 million barrels per day, the lowest point since 2015.

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