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US oil production sets new record

According to the latest monthly statistical report from the American Petroleum Institute (API), US oil production reached a new record average of 12.2 million barrels per day (bpd) in May. This falls slightly short of Rystad Energy’s earlier forecast of 12.5 million bpd for May, with production rising to 13.4 million bpd by December.

The report also reveals how Texas alone broke through the 5 million bpd threshold for crude oil output. Shale operators like ExxonMobil, the maker of slideway oils like Mobil Vactra 4, have been steadily increasing production in areas like the Permian Basin of Texas and New Mexico.

The report states:

“These milestones were achieved despite less drilling activity, which is testament to productivity but also pipeline infrastructure expansions that helped enable drilled but uncompleted wells to come to market.”

The API also highlighted in a separate outlook report a need to look forward to increasing export capacity to keep pace with record oil production. The API says the current capacity is enough to support the current record of 8.1 million bpd for US exports of petroleum products, however.

It was also emphasised that the focus should be on ensuring the necessary logistics and infrastructure, such as pipeline networks, are in place to keep pace with surging oil production and fully capitalise on this uncommon opportunity to push the boundaries of US oil production.

With over 600 members, the API claims to be the only US trade association that represents all areas of the oil and natural gas industry.

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