Odd Lots US Oil Is Booming and It's Upending Global Markets
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Jan 18, 2024 
In this engaging discussion, Javier Blas, a Bloomberg Opinion columnist specializing in oil and energy markets, breaks down the unexpected boom in U.S. oil production, which has skyrocketed to 13 million barrels per day. He sheds light on how the industry has pivoted to profitability post-bust and delves into OPEC's shifting influence amid this surge. Their conversation also touches on geopolitical tensions in the Red Sea and the rise of electronic electricity trading in Europe, highlighting the complexities of modern energy markets.
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Record U.S. Oil Production
- U.S. oil production has reached record levels, exceeding 13 million barrels of crude per day.
- Including other liquids, total U.S. oil output surpasses 20 million barrels daily, representing one-fifth of global consumption.
Efficiency in U.S. Oil Production
- Increased U.S. oil production isn't solely due to more rigs; efficiency plays a crucial role.
- Longer horizontal wells, sometimes extending three miles, extract significantly more oil than shorter wells used previously.
Statoil's Standardized Drilling
- In 2016, Statoil drilled three reservoirs for the price of one using standardized well designs and components.
- This standardization in the oil industry was driven by low oil prices.