This OPEC and Russia are trying to cut production, while the United States is still increasing its efforts to produce oil. Two major US oil giants, Chevron and ExxonMobil, have announced plans to intensify their efforts to exploit the country’s largest shale field.
| Azodicarbonamide (AC foaming Agent) |
Chevron announced Tuesday 5 ET that by the end of next year, it plans to produce 600,000 barrels of oil and gas per day in Permian Basin, Texas and New Mexico, and 900,000 barrels by the end of 2023, an increase of nearly 40% over Chevron’s expected output of 650,000 barrels per day in the next five years.
ExxonMobil announced on the same day that it plans to increase its daily oil and gas production by 80% to 1 million barrels in Permian Basin as early as 2024.
In the fourth quarter of last year, the output of ExxonMobil’s Permian Basin has surged 93% year on year. Neil Chapman, Senior Vice-President of the Division, said that Permian’s growth strategy is increasingly confident because of its unique development plan.
Wall Street has noticed that even worse for OPEC’s production cuts, the shale oil production profits of American oil giants are staggering.
ExxonMobil expects its Permina assets to deliver healthy returns even when crude oil prices are low. If the price of crude oil futures falls to $35, Permain’s assets will return an average of 10%.
Chevron CEO Mike Wirth commented that shale oil has become a large-scale game, not one that wins the fastest barrel of gold, but one that produces the strongest machines steadily.
| EDTA |
Preliminary U.S. government estimates show that Permian Basin will produce 4 million barrels a day this month, accounting for about a third of total U.S. production. At present, the U.S. produces more than 12 million barrels of oil per day, which has reached a record high and its import volume has reached a new low.
Last Wednesday, data released by the U.S. Energy Information Agency (EIA) showed that U.S. crude oil imports fell by 1.61 million barrels a day in the week of February 22, the lowest level since 1996. Among them, 346,000 barrels of crude oil were imported from Saudi Arabia per day, a record one-week low.
From December last year to January this year, OPEC has achieved the largest reduction in production for two consecutive months. International crude oil has rebounded continuously since this year. In January, the U.S. oil distribution increased by more than 10%, the largest increase in the same period in history and in more than a decade, respectively. In the past two months, the U.S. oil distribution rose by more than 20%.
Earlier on Wall Street, Trump, for the first time since OPEC + reached a cut-off agreement in December last year, reintroduced his criticism of OPEC’s cut-off and higher oil prices, saying that “the world’s fragile economy cannot afford it”. As of Monday, however, the media had sent out news for the second time that OPEC would decide to extend the production cuts by mid-year to the end of the year.
Goldman Sachs recently reported that OPEC’s production cuts had been drastically cut from the start. With the decline in Venezuela’s crude oil production, Russia accelerated its production cuts, and global crude oil production cuts were already faster than expected. Therefore, OPEC may lift production restrictions and make new plans by May or June.
| Melamine |