Photo: Hussein Malla / AP
Against the background of recovery in oil demand and increasing raw material costs the US oil industry is going to increase production. In some fields of production has increased, the newspaper “Vedomosti”.
The American pipeline operator Energy Transfer was reported restore production approximately in all basins. According to the company, if the March to may the amount of transported oil fell by 20 percent in June, according to preliminary forecasts, will be completed half of the losses.
At the same time, the CEO of Energy Transfer Kelsey Warren acknowledged that the recovery of production may be short-lived due to the decrease in the number of working drilling rigs.
The technology of shale oil is that requires constant drilling of new wells, as the current rapidly depleted. Over the past week the number of working units decreased to 206 — this is another low for all the calculations. Over the past year, they decreased by 583.
At the end of may, production in the US declined from 13 million barrels in March to 11.2 million. According to forecasts by IHS, Markit, most of the cuts will be restored by September.
The value of the U.S. benchmark WTI as of June 9, remains at the level above $ 38 per barrel. This price already makes it profitable prey in the fields. Oil prices rebounded from the lows over the decades because of the deal, OPEC+, under which 23 countries have agreed to remove from the market of 9.7 million barrels per day.
Over the weekend the parties agreed to extend the maximum limit at least in July, which led to a further rise in prices.
Video, photo All from Russia.