Oil Output: OPEC Cuts — U.S. Increases

CBJ — The international oil battle continues between OPEC and the United States.  It’s been a few weeks since OPEC started cutting production but in that time period, the U.S. ramped up its shale drilling production.

The U.S. Energy Information Administration has forecast that U.S. oil production would rise through 2017 to nine million barrels per day. In the first week of January, production rose to 8.95 million barrels per day.

With oil in the $50 to $55 US a barrel range, fracking is now profitable. Anything less than about $48 per barrel makes it an unprofitable situation. The U.S. has said it will continue to turn on the taps if/when OPEC increases the price of oil beyond what many non-OPEC consider to be acceptable levels.