U.S. Oil Output to Top 14 Million Barrels a Day as Iran War Limits Market-Share Gains
Updated
Updated · The New York Times · Jun 22
U.S. Oil Output to Top 14 Million Barrels a Day as Iran War Limits Market-Share Gains
3 articles · Updated · The New York Times · Jun 22
Summary
U.S. crude production is now forecast to rise modestly next year and exceed 14 million barrels a day for the first time, reversing the Energy Information Administration’s earlier expectation of a decline.
The shift follows the Iran war’s boost to oil prices, profits and some drilling activity, pulling the industry out of a slump even after a preliminary deal paused the conflict.
Executives and investors say that lift still will not let U.S. producers seize much business from Persian Gulf rivals because shareholders want disciplined returns, prime drilling sites are thinning and companies cut workers and equipment during last year’s price slump.
Natural gas looks more favorable: U.S. exports are expanding while Qatar faces years of repairs to war-damaged facilities, and buyers may stay wary of Persian Gulf supply after Iran showed how easily shipping there can be choked.