Ever since OPEC began cutting oil production, drilling in the United States has surged.
Norwegian consultancy Rystad Energy estimates $100 billion in investment funds has flowed into the U.S. shale industry over the past year, propping up domestic drilling by 60 percent. So-called completion activity – procedures like hydraulic fracturing that stimulate shale wells – has gone up 30 percent, Rystad said.
And there’s no sign things will slow down. Shale investments could climb another 50 percent this year, Rystad analyst Espen Erlingsen said in a written statement.
Rystad believes daily U.S. oil production could jump from 8.9 million barrels in November to 9.3 million barrels next month, getting ever closer to the nation’s recent peak of 9.6 million barrels in mid-2015.