• 2 days Shell Oil Trading Head Steps Down After 29 Years
  • 2 days Higher Oil Prices Reduce North American Oil Bankruptcies
  • 2 days Statoil To Boost Exploration Drilling Offshore Norway In 2018
  • 2 days $1.6 Billion Canadian-US Hydropower Project Approved
  • 2 days Venezuela Officially In Default
  • 2 days Iran Prepares To Export LNG To Boost Trade Relations
  • 2 days Keystone Pipeline Leaks 5,000 Barrels Into Farmland
  • 3 days Saudi Oil Minister: Markets Will Not Rebalance By March
  • 3 days Obscure Dutch Firm Wins Venezuelan Oil Block As Debt Tensions Mount
  • 3 days Rosneft Announces Completion Of World’s Longest Well
  • 3 days Ecuador Won’t Ask Exemption From OPEC Oil Production Cuts
  • 3 days Norway’s $1 Trillion Wealth Fund Proposes To Ditch Oil Stocks
  • 3 days Ecuador Seeks To Clear Schlumberger Debt By End-November
  • 3 days Santos Admits It Rejected $7.2B Takeover Bid
  • 4 days U.S. Senate Panel Votes To Open Alaskan Refuge To Drilling
  • 4 days Africa’s Richest Woman Fired From Sonangol
  • 4 days Oil And Gas M&A Deal Appetite Highest Since 2013
  • 4 days Russian Hackers Target British Energy Industry
  • 4 days Venezuela Signs $3.15B Debt Restructuring Deal With Russia
  • 4 days DOJ: Protestors Interfering With Pipeline Construction Will Be Prosecuted
  • 4 days Lower Oil Prices Benefit European Refiners
  • 4 days World’s Biggest Private Equity Firm Raises $1 Billion To Invest In Oil
  • 5 days Oil Prices Tank After API Reports Strong Build In Crude Inventories
  • 5 days Iraq Oil Revenue Not Enough For Sustainable Development
  • 5 days Sudan In Talks With Foreign Oil Firms To Boost Crude Production
  • 5 days Shell: Four Oil Platforms Shut In Gulf Of Mexico After Fire
  • 5 days OPEC To Recruit New Members To Fight Market Imbalance
  • 5 days Green Groups Want Norway’s Arctic Oil Drilling Licenses Canceled
  • 6 days Venezuelan Oil Output Drops To Lowest In 28 Years
  • 6 days Shale Production Rises By 80,000 BPD In Latest EIA Forecasts
  • 6 days GE Considers Selling Baker Hughes Assets
  • 6 days Eni To Address Barents Sea Regulatory Breaches By Dec 11
  • 6 days Saudi Aramco To Invest $300 Billion In Upstream Projects
  • 6 days Aramco To List Shares In Hong Kong ‘For Sure’
  • 6 days BP CEO Sees Venezuela As Oil’s Wildcard
  • 6 days Iran Denies Involvement In Bahrain Oil Pipeline Blast
  • 9 days The Oil Rig Drilling 10 Miles Under The Sea
  • 9 days Baghdad Agrees To Ship Kirkuk Oil To Iran
  • 9 days Another Group Joins Niger Delta Avengers’ Ceasefire Boycott
  • 9 days Italy Looks To Phase Out Coal-Fired Electricity By 2025
The Dangers Of A Bullish Oil Market

The Dangers Of A Bullish Oil Market

Geopolitical tensions continue to threaten…

China’s Mysterious Arctic Silk Road

China’s Mysterious Arctic Silk Road

As China pushes through its…

Zainab Calcuttawala

Zainab Calcuttawala

Zainab Calcuttawala is an American journalist based in Morocco. She completed her undergraduate coursework at the University of Texas at Austin (Hook’em) and reports on…

More Info

US Shale To Increase 122,000 BPD Next Month

Midland Oil

American shale output will continue its rise in June, the Energy Information Administration said on Monday in a forecast likely to further rouse the irritation of members of the Organization of Petroleum Exporting Countries (OPEC).

U.S. shale producers will increase output by 122,000 barrels per day next month to 5.401 million bpd, with the Permian Basin in Texas and New Mexico seeing the most growth. Roughly 71,000 barrels daily of gains will come from the southern formation.

Since the end of last year, OPEC has embarked on a mission to reduce the global oil supply glut to allow barrel prices to recover. Algeria and Venezuela are desperate to see high oil prices to return as both countries stand on the brink of economic and political collapse. But high output from Nigeria and Libya—two OPEC members exempt from the output quotas—as well as the United States is jeopardizing the bloc’s efforts.

Oil prices fell last week in anticipation of flooded markets, but NOPEC Russia and OPEC Saudi Arabia announced this morning that the two countries would be extending cuts until March 2018. The rest of the bloc is expected to act similarly following a meeting in Vienna on May 25.

Drilling in the U.S. is coming back quickly– a trend that shifts leverage back in favor of oilfield services companies who are starting to hike their prices after being force to take deep cuts over the past 2.5 years. According to S&P Global Platts, oil services costs are expected to rise by about 20 percent on average this year, and data from the U.S. Bureau of Labor Statistics – reported on by Reuters– shows that drilling costs jumped by 7 percent between November and March. That is the first sustained increase in costs in over three years, and costs could continue to inch up.

By Zainab Calcuttawala for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News