U.S. crude oil production reach 12 million BPD in mid-February, according to the EIA actual report. EIA’s weekly petroleum report showed crude output jump more than 1.7 million BPD compared to February 2018: From 10.3 million BPD to 12 million BPD.
EIA didn’t forecast the U.S. hitting 12 million BPD output until 2020 or later in its 2018 estimate.
With such stellar performance, U.S. oil and natural gas production is breaking every record in the ledger, nevertheless this whole business fever is missing bigger picture. Permian basin oilers with 34 to 52 dollar costs per barrel are second in row candidates (after even more costly offshore oil extraction businesses) for some sober cognition.
With such production costs, fracking is not long-term viable business. Players with costs under 20 dollars per barrel will survive next 5-10 years.