NEW YORK — Despite the escalating geopolitical tensions caused by the Russia-Ukraine, and Israeli-Hamas conflicts, the U.S. has recorded the highest oil production month in history with projections of rising further.
The U.S. oil production has gone up to the highest level on record and it is projected to continue to rise next year. These changes come amid growing concerns of the war between the Israeli and Hamas, which is likely to alter the normal oil supply globally.
“That’s a testament to the ingenuity of the U.S. oil-and-gas industry,” said Phil Flynn, senior market analyst at The Price Futures Group.
The Biden administration has subjected the oil and gas industry to a harsher regulatory as well as legislative environment. The industry has lease sales for the next five years, which would be the smallest period of lease sales provided in American history.
“What’s perhaps most impressive about the steady surge in oil production is the fact that the weekly US oil rig count remains well below the 2014 peak of more than 1,600 rigs. There were just 502 active oil rigs in the US last week, representing a 69% decline from the 2014 peak. That shows just how efficient America’s energy industry has become after a period of depressed oil prices from 2014 through 2021,” read a statement from the U.S. Field Production of Crude Oil.
“Crude production is cyclical, but over the last decade and a half has registered a strong uptrend relative to operating rigs or employment in the oil and gas industry. This is a powerful form of technological progress and productivity growth,” said Comerica Bank chief economist Bill Adams.
“Total U.S. petroleum production climbed to 13.2 million barrels a day as of week ended Oct. 6, according to the Energy Information Administration — the highest figure based on data going back to 1983. The latest data released Wednesday showed output remained unchanged at that level for the week ended Oct. 13,” said the U.S. Field Production of Crude Oil official.
The increase in oil production has enormous economic significance to the U.S., which consistently joins the league of net oil crude exporters. “It makes America’s economy more resilient and reduces the chance of a recession in 2024,” said Adams.
Though eventually, the greatest factor affecting oil mining is the cost of oil. However, going into an election year it’s likely to be more challenging to contest against President Biden’s energy policies, when he can figure to all-time high oil exploration and say “I must be doing something right.”
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