Mid-Week Review – March 10, 2021

U.S. shale producers’ capital discipline likely to hold in 2021

Capital discipline from shale producers in the United States is likely to hold this year and through the next, but it could be difficult for companies to resist the temptation to grow production volumes beyond that, Raoul LeBlanc, vice president of North American unconventionals at HIS Markit, said during CERAWeek. “At any given price growth will be less than in years past but if you get into the $70-$75 per barrel oil range, you can both return money to investors and have strong growth … so there is a point at which the temptation becomes too strong,” LeBlanc said. Click Here to read more from Reuters.

Are America’s Largest Oil Companies Really Going Green?

The specter of another extension of OPEC+ production cuts has overshadowed news of a hefty 21.6M-barrel increase in U.S. crude inventories. It has also overshadowed another important development: The greening of the American oil industry has gone into overdrive. Click Here to read more from Oilprice.com.

U.S. crude oil production fell by 8% in 2020, the largest annual decrease on record

U.S. crude oil production averaged 11.3 million barrels per day (b/d) in 2020, down 935,000 b/d (8%) from the record annual average high of 12.2 million b/d in 2019. The 2020 decrease in production was the largest annual decline in the U.S. Energy Information Administration’s records. The production decline resulted from reduced drilling activity related to low oil prices in 2020. Click Here to read more from the EIA.

EIA Short-Term Energy Outlook

The March Short-Term Energy Outlook (STEO) remains subject to heightened levels of uncertainty because responses to COVID-19 continue to evolve. Reduced economic activity related to the COVID-19 pandemic has caused changes in energy demand and supply during the past year and will continue to affect these patterns in the future. Click Here to read the EIA’s Short Term Energy Outlook.