US oil output to climb again despite restraint of big shale drillers

  • Date: 23-Sep-2021
  • Source: Financial Times
  • Sector:Oil & Gas
  • Country:Gulf
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US oil output to climb again despite restraint of big shale drillers

US oil production is set to pick up steam again — this time led by little-known privately owned companies impervious to the demands of the stock market. 

Forecasters project that the nation’s crude oil output will increase by about 800,000 barrels a day over the course of 2022, accelerating sharply from this year and making the US the fastest-growing supplier outside of a producer alliance that includes members of the Opec cartel.

Marquee oil companies are not driving the rise. Instead, privately held producers, often smaller companies, will account for more than half of total US output growth next year compared to about 20 per cent in a typical year, said Raoul LeBlanc, an analyst at IHS Markit. 

The anticipated output gains come as US oil prices hover at about $70 a barrel, which make most shale wells profitable to drill. But many of the largest producers have promised their shareholders they will cap spending on growth after racking up huge losses during a decade-long drilling binge. 

Private companies, by contrast, have led the rise in the number of rigs drilling for oil and gas in the US this year, which has more than doubled from this time last year. The businesses include larger