• 3 minutes "Biden Is Running U.S. Energy Security Into The Ground" by Irina Slav
  • 6 minutes How Far Have We Really Gotten With Alternative Energy
  • 9 minutes "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
  • 23 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 7 days 87,000 new IRS agents, higher taxes, and a massive green energy slush fund... "Here Are The Winners And Losers In The 'Inflation Reduction Act'"-ZeroHedge
  • 5 days Energy Armageddon
  • 3 days "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 14 hours "Forget Oil, The Real Crisis Is Diesel Inventories: The US Has Just 25 Days Left" by Zero Hedge - 5 Stars *****
  • 21 hours "The Global Digital ID Prison" by James Corbett of CorbettReport.com
  • 18 hours "Europe’s Energy Crisis Has Ended Its Era Of Abundance" by Irina Slav
  • 21 hours The Federal Reserve and Money...Aspects which are not widely known
  • 4 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 2 days Is Europe heading for winter of discontent with extensive gas shortages?
  • 5 days Сryptocurrency predictions
  • 2 days Goldman Betting on Cryptocurrencies
  • 10 days Putin and Xi Bet on the Global South
Donald Trump’s Claims About Filling The SPR Are Not True

Donald Trump’s Claims About Filling The SPR Are Not True

Former U.S. President Trump’s claim…

Biden Quietly Approved 2 Million Bpd Texas Oil Terminal

Biden Quietly Approved 2 Million Bpd Texas Oil Terminal

Despite its clear anti-oil stance,…

U.S. Shale Won’t Fill Gap If OPEC+ Cuts Oil Production

The U.S. shale industry won’t step in to fill the gap left by an OPEC+ crude oil production cut, energy executives told Reuters on Tuesday.

OPEC+ is set to review on Wednesday its production plans for November—and the industry consensus is that OPEC+ could consider slashing its output by anywhere from 500,000 bpd to more than a million barrels per day. While some in the industry have pointed out that cutting its targets isn’t the same as cutting actual production, the fact that the group’s most prolific oil producer, Saudi Arabia, is producing to its current target means that any production cut would at a minimum result in a production decrease from The Kingdom.

And energy executives are saying that OPEC+ remains in control of the market, and that U.S. shale can’t step in to compensate for any production declines.

“Nothing is going to ramp up fast,” Andy Hendricks, CEO of driller Patterson-UTI, told Reuters. Most companies have 2023 drilling plans nearly set in stone, inflation has increased equipment costs, and labor has grown increasingly difficult to find.

The U.S. shale industry has been a competent counter to OPEC actions, at least in recent years, ramping up when OPEC cut production—a perfect counterbalance to keeping prices in check.

But those days are over, oil and gas CEOs told Reuters on Tuesday, and crude oil prices—and gasoline prices—could rise substantially if OPEC+ announces production cuts later this week.

“If OPEC cuts a million barrels a day, I think gas prices would go back up to $6 a gallon,” John Catsimatidis, CEO of United Refining Company, told Reuters.

Gasoline prices in the United States were up on Tuesday to $3.805 per gallon—up from $3.747 per gallon, according to AAA data.

By Julianne Geiger for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment
  • Mamdouh Salameh on October 04 2022 said:
    US shale oil is a spent force. It can neither raise its production nor can it fill any gap should OPEC+ decide to cut its oil production.

    In the past, the US shale industry acted as a counterbalance to OPEC ramping up
    Its production when OPEC cut its production but those days are over probably for ever.

    Dr Mamdouh G Salameh
    International Oil Economist
    Global Energy Expert

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News