U.S. shale oil production is poised for a significant boost, with BloombergNEF BNEF forecasting a 4.5% increase in output to 13.9 million barrels per day by 2025
. This represents an additional 600,000 barrels per day compared to this year, thanks to improved well productivity and more efficient drilling and fracking techniques. It should be noted that BNEF's projection is more optimistic than the U.S. Energy Information Administration's EIA estimate of 13.7 million barrels per day, and decidedly more optimistic than OPEC's estimate for U.S. production of 13.49 million barrels per day in 2025.
production could put further downward pressure on prices, which may have political implications as the U.S. heads into an election year. If U.S. shale production rises as Bloomberg predicts, it could lead to a surplus of oil, potentially driving prices down further. This scenario would be particularly beneficial for the Biden Administration, with Vice President Kamala Harris—the presumed Democrat candidate—potentially reaping the rewards of lower crude prices during the 2024 election campaign.
U.S. Oil Oil Prices Oil Production Shale Assets Permian
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