Those “drill baby drill” fanatics who still insist America is on the smooth road to energy independence might want to pump the brakes just a bit.
A look at the latest report by the US Energy Information Administration shows US oil production is down over one million barrels per day since its June 2015 peak of 9.6 million. As of September 9, 2016, US oil production is at 8.5 million barrels per day. That’s an 11.5% drop in production in a relatively short period of time, and it’s a downward slope with no end in sight.
OPEC did agree to a modest production cut of under 1 million barrels per day on Wednesday, Sept. 28, and prices quickly shot up 5%.
Two of the three biggest formations in the US — Eagle Ford, predominantly in Colorado, and Bakken, predominantly in North Dakota — are now producing 40% and 25% less, respectively, compared to this time last year. It is an alarming drop off that can’t be dismissed by merely blaming the Organization of Petroleum Exporting Countries (OPEC) for “flooding markets” and awaiting a price rebound.