Despite low oil prices US producers are still pumping it like there’s no tomorrow. Fracking saw US oil production expand at its fastest pace ever over the last four years.
Low oil prices did move many producers to start closing rigs towards the end of last year. However, some US regions are profitable even with oil at $40 a barrel.
US producers getting ever more efficient
Producers are getting more efficient and, even though rigs are shutting down fast, oil production isn’t slowing down. New wells, many of which were sunk before the drop in oil prices, produce oil faster and it will take some time before we’ll see lower production.
New production ready to come online when prices recover
There are literally thousands of practically finished wells that are left unexploited, for now. The moment prices start rising these wells will start producing oil after a few weeks of adding some finishing touches.
In the most fruitful areas production will continue to climb for months even if no new rigs are built, according to Bloomberg Intelligence.
Click here to watch four years of US oil drilling collapse in seconds.
This article first appeared on 702 : US still pumping loads of oil. In fact, more than any time since 1972