U.S. crude oil production has risen—albeit modestly—for the first time in ten weeks, the latest EIA data shows.
Weekly U.S. field production of crude oil rose to 11.7 million barrels per day, according to EIA data, up from 11.6 million bpd in the previous seven weeks.
U.S. oil producers have been in the crosshairs since oil started rising—which was before Russia invaded Ukraine--for failing to ramp up crude oil production. The oil industry has further been accused of price gouging, which the U.S. government said has led to high prices at the pump for drivers.
Meanwhile, U.S. oil producers claim that shareholders are still demanding fiscal restraint, and the regulatory environment isn’t welcoming to additional investments. Even at $200 oil, Pioneer Natural Resources’ chief executive Scott Sheffield said last month, U.S. shale companies aren’t going to change their growth plans to switch to an aggressive drilling program.
Nevertheless, the Baker Hughes U.S. oil rig count shows that oil companies in the United States have added 39 drilling rigs over the last 10 weeks. Crude oil production, however, lags rig additions.
Of course, these production figures provided by the EIA are estimated based on short-term forecasts. And since they are rounded to the nearest 100,000 barrels, it is impossible to know how much—if any—of an increase there is at all.
The EIA says that its crude oil production figures “includes lease condensate and is estimated using a combination of short-term forecasts for the lower 48 states and the latest available production estimates from Alaska….Weekly crude oil production estimates are rounded to the nearest 100,000 b/d at the U.S. and lower 48 state level,” according to the EIA’s website.
By Julianne Geiger for Oilpice.com
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