USA was on the verge of collapse, record oil production

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U.S. in danger of losing up to a third of shale oil production because of a record reduction in the number of active rigs, according to Bloomberg, citing data from research company ShaleProfile Analytics.

Due to the features of the technology companies need to constantly drill new wells as they are being rapidly depleted. This is the weak point of the oil shale industry.

Producers were on the verge of collapse because of the collapse of demand for raw materials and, as consequence, falling prices. Their recovery will take at least a few years, notes The Wall Street Journal.

The production of shale oil in the United States this year could drop below five million barrels per day, many companies losses amount to 30-50 percent for the year. While 15 of the largest shale companies in the country have cut their budgets for development of new fields by an average of 48 percent.

Earlier, the U.S. Department of energy predicted oil production in the country at the beginning of 2021 at the level of 13.5 million barrels per day.

U.S. authorities separately are afraid that China will begin to buy up struggling us shale companies. In terms of “unprecedented demand destruction, low energy prices and the catastrophic debt,” they look obvious goal, said analytical resource OilPrice.

The number of active oil and gas rigs in the U.S. fell to a historic low, and reached 318-ti. Against this background, most medium and small producers of raw shale in the country was on the verge of bankruptcy, because oil production had become unprofitable and do not allow to servicing previously taken loans.

Video, photo All from Russia.

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