American Shale Springs Into Action To Tame Runaway Oil Market

American Shale Springs Into Action To Tame Runaway Oil Market

Is the U. S. shale sector about to rescue the global oil market as prices spiral toward $100 a barrel? Maybe. Shale producers have a history of surprising market expectations by delivering more production than forecasters saw coming. And the same narrative could be playing out in the U. S. oil sector. Experts have been busy revising U. S. production forecasts for 2022 and 2023 higher in recent weeks after shale companies reported stellar fourth-quarter results and provided updates on their capital expenditure and drilling plans. Some of the most prominent shale players are responsible for these revisions, including U. S. oil majors Exxon Mobil and Chevron, dominant producers in the prolific Permian Basin of West Texas and New Mexico. Chevron recently announced during an investor presentation that it plans to raise its Permian production this year by 10 percent, which would amount to another 60, 000 barrels a day. Not to be outdone, Exxon detailed plans during its presentation to raise its Permian volumes by 25 percent in 2022, which would increase its overall output by 100, 000 barrels a day. To be sure, some of the largest publicly traded independent producers like EOG Resources and Pioneer Natural Resources