US Shale Producers Signal More Oil Coming as OPEC Counts on Restraint

The planning uptick in shale will come from larger companies and particularly from the Permian Basin, the top U.S. shale field, and follows pressure from the White House for more production.

Liz Hampton and Sabrina Valle, Reuters

U.S. shale producers’ decision this year to resist pumping more oil even as prices surge could be nearing an end, according to company executives.

Several major oil companies, including BP Plc, Chevron Corp. and Exxon Mobil Corp., are planning to increase output or shale spending next year, undercutting OPEC’s tight supply management that has pushed crude oil prices above $80 a barrel as global demand for fuel rebounded more swiftly than many anticipated.

“As oil prices rise, it's increasingly likely that oil production growth resumes,” said Josh Young, chief investment officer of energy investor Bison Interests. The gains, however, will remain below the rate of pre-COVID-19 increases, he said.

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