U.S. Oil and Gas Hit New Highs in September, Underscoring Challenge to OPEC+
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U.S. crude oil and natural gas production hit new records in September 2023, highlighting the challenge to OPEC+ countries cutting output.
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Lower 48 oil output keeps rising thanks to drillers boosting efficiency, focusing on the best sites, and boring longer horizontal wells.
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OPEC+ cuts have stabilized prices and allowed U.S. producers to benefit as "free riders," leading Saudi Arabia to reach out to other non-OPEC producers like Brazil.
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U.S. gas production growth is slowing in response to very low prices, but a strong El Niño this winter could reduce heating demand and keep inventories high.
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Reuters market analyst John Kemp argues OPEC+ may bring more non-OPEC non-shale producers into its output coordination system rather than spark a price war.