Following last year’s sharp decline in crude oil prices, many analysts expected that U.S. production would be curtailed as prices below $70 per barrel would not support profitability. As predicted, the active U.S. oil rig count dropped significantly. However, the level of U.S. production hasn’t fallen but rather increased due to improvements in technology, which have enabled producers to achieve record efficiencies. Going forward, we will see if these efficiencies are sustainable with WTI crude stabilizing at around $60 per barrel over the past two months.
Have the Saudis Miscalculated the Impact of Lower Crude Prices On U.S. Production?
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