While oil production waned at the outset and early portions of the COVID-19 pandemic, the encouraging sign is production in the Lower 48 states is expected to soon exceed levels experienced before the pandemic. A major reason for this is the significant improvements made in drilling over the last year.
The GlobalData report projects that U.S. shale production will once again reach levels seen before the pandemic by 2024. The improvements made in drilling are expected to decrease the break-even mark for unconventional projects to roughly $35 per barrel, which will fuel increased production in the industry.
Adam Ferrari echoes a recent forecast released by the U.S. Energy Information Administration, which shows that crude oil production in the United States is likely to remain at current levels throughout the end of 2021 before increasing by 3.5% in 2022. The main drivers of that growth are expected to be "onshore tight oil production," according to the EIA's short-term energy outlook (STEO).