Quick Bites | The US oil boom

US oil production, the world’s highest, is over 13.2 million barrels per day, nudging past levels seen just before COVID crushed demand and prices. For political reasons, and to burnish his environmental credentials, President Biden hasn’t played up US oil strength in his re-election pitch, but he does like promoting lower gas prices that this supply increase helps enable.

Biden’s critics want less regulation and stronger support for drilling on federal lands. Much of the oil and gas boom has unfolded on private or state lands, notably the prolific Permian Basin in Texas and New Mexico.

Attractive prices in recent years provide an incentive to drill more, although public firms are steering a lot of money into dividends and buybacks. Cost pressures have eased somewhat too. This occurs at a time when Saudi Arabia, Russia and allied producers have held back some production as Organization of the Petroleum Exporting Countries members plus other oil-producing countries (OPEC+) look to prop up prices.

US, Russian and Saudi oil production since 2020

Source: Axios, US Energy Information Administration

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