Blog Post

25 June 2015

SHALE PRODUCTION IN THE U.S. IS HERE TO STAY

Exploration and production (E&P) companies operating in the U.S. have been very successful at pushing their costs down in response to lower oil prices.   As a result, production in the U.S. has not declined as a result in the drop in oil prices. Mark Mills with the Manhattan Institute recently wrote that the 1.2 million barrel increase in oil production in the U.S. in 2014 was the largest single year increase in the history of the oil age, which began over a century ago.  In the past five years, U.S. daily oil production has increased by over 4 million barrels.  Moreover, additional production is waiting in the wings, with an estimated 3,000 to 5,000 unconventional wells that have been drilled but not completed — yet.  Article by: Thomas Tunstall is the director of the Institute for Economic Development at the University of Texas at San Antonio.  San Antonio Business Journal