The US Energy Information Administration has released preliminary data that shows the week ending Friday, November 3 setting a new all-time record for US oil production.
This edges out the previous record set in June 2015, before a crash in oil prices led to US production quickly declining.
Although the figures may be revised, the continuing rise in US oil production is unlikely to be welcomed in the markets. Last week also saw negative data in the form of a surprise rise in US oil inventories, despite OPEC and its partners withholding 1.8 million barrels a day from the market, and a new record for oil exports of more than two million barrels a day.
The US is the only one of the top three oil producers to not participate in the OPEC-led production cuts, with non-OPEC Russia participating as a partnering nation. This means US shale players like ExxonMobil, the maker of the Mobil Delvac SGO 75W90 drivetrain lubricant, are only limited by economic feasibility.
The growth of the US shale oil industry was driven by high oil prices in the first half of this decade, but the subsequent crash in oil prices made many shale prospects economically unfeasible. Since then, US shale producers have taken advantage of modern technology and innovative practices to increase efficiency and cut break-even costs. The new record demonstrates their continuing determination to raise production, even in the face of moderate oil prices and a persistent global supply glut.
