(Nick Cunningham - Oil Price)
The oil markets have long expected that U.S. shale production would rebound once oil prices started to rise. But the comeback of shale could be much faster and stronger than many once anticipated.
As Bloomberg Gadfly points out, the rise in U.S. oil production since output bottomed out at the end of last summer has been swift. Since September, U.S. production has climbed roughly 125,000 bpd on average each month, pushing total production above 9 million barrels per day. That is a much faster pace of growth than the original shale boom that began years ago. The corresponding period for the 2011-2014 shale boom saw monthly growth of just 93,000 bpd.
There are a few reasons for this. First, the industry is leaner than it once was, with some of the least efficient companies forced out of the market and the consolidated sector is now moving quickly with oil prices stabilized in the $50s per barrel range. Second, oil drillers have a lot more experience in shale than they did years ago. Click here to read more.