U.S. crude output increased last week-why and what next？

[周永樂 + 3]

https://www.eia.gov/dnav/pet/pet_sum_sndw_dcus_nus_w.htm

[Junior Geo + 25]

My guess is that the increase in oil production in the US is due to companies resuming production on shut-in wells. Rig levels are still highly subdued in the US, so I assume production declines will kick in soon. I think that we will see that production begin to taper off again by the end of the summer/early fall as well declines kick in.

As for what next, it is a guessing game. If oil continues to hover around $40/barrel, I could see shale producers starting to increase rig/completion rig counts to keep production flat. But that is just a guess.

Edited July 29, 2020 by Junior Geo

[周永樂 + 3]

12 hours ago, Junior Geo said:

My guess is that the increase in oil production in the US is due to companies resuming production on shut-in wells. Rig levels are still highly subdued in the US, so I assume production declines will kick in soon. I think that we will see that production begin to taper off again by the end of the summer/early fall as well declines kick in.

As for what next, it is a guessing game. If oil continues to hover around $40/barrel, I could see shale producers starting to increase rig/completion rig counts to keep production flat. But that is just a guess.

Yes.Maybe shale companies need to pay the increased debt accumulated in the decades. And rigs will have a limited rise.