U.S. oil production booms as new year begins

[IsailedawayfromFR]

U.S. crude oil production is flirting with record highs heading into the new year, thanks to the technological nimbleness of shale oil drillers .

The current abundance has erased memories of 1973 gas lines, which raised pump prices dramatically, traumatizing the United States and reordering its economy. In the decades since, presidents and politicians have made pronouncements calling for U.S. energy independence.

President Jimmy Carter in a televised speech compared the energy crisis of 1977 to “the moral equivalent of war.”
https://www.washingtonpost.com/business/capitalbusiness/us-oil-production-booms-as-new-year-begins/2017/12/31/de49b50e-ee50-11e7-b3bf-ab90a706e175_story.html?utm_term=.a9e24aab709f

Memories of the Jimmy Carter years reminds Americans what Dems are about: giving up on America.
 
Interesting tidbit from article:
The United States is so awash in oil that petroleum-rich Saudi Arabia’s state-owned oil and natural gas company is reportedly interested in investing in the fertile Texas Permian Basin shale oil region, according to a report last month.

[thackney]

https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=MCRFPUS2&f=M



https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=WCRFPUS2&f=4

[InHeavenThereIsNoBeer]

Couple questions on the first chart:

1) Why the long term downward trend?  Economics or politics?  The article kind of hinted, but it's the post.

2) I seem to remember a boom and bust several years ago.  I guess that could be the ramp up off, and then back down to, 4,000 around 2006-2009?  I suppose that's a decent size move in relative terms, but I expected to see something more substantial, and that's a bit further back (and shorter) than it "should be".

[IsailedawayfromFR]

Couple questions on the first chart:

1) Why the long term downward trend?  Economics or politics?  The article kind of hinted, but it's the post.

2) I seem to remember a boom and bust several years ago.  I guess that could be the ramp up off, and then back down to, 4,000 around 2006-2009?  I suppose that's a decent size move in relative terms, but I expected to see something more substantial, and that's a bit further back (and shorter) than it "should be".

Oil prices dropped sharply in the mid 80s causing drilling to pull way back and the majors went more overseas to exploit oil instead of staying domestic.

The oil industry cycles all the time since its profitability is tied to the price of the product they sell, oil.

[InHeavenThereIsNoBeer]

Oil prices dropped sharply in the mid 80s causing drilling to pull way back and the majors went more overseas to exploit oil instead of staying domestic.

The oil industry cycles all the time since its profitability is tied to the price of the product they sell, oil.

Thanks.

Comparing those charts it looks like production is driven by price, but doesn't react immediately or completely to price changes, which would make sense.  I think I found the boom bust I was looking for in the runup from 2008 and the drop around 2014/5.

[IsailedawayfromFR]

Thanks.

Comparing those charts it looks like production is driven by price, but doesn't react immediately or completely to price changes, which would make sense.  I think I found the boom bust I was looking for in the runup from 2008 and the drop around 2014/5.

IN my +40 years in the oil industry, I knew at least 4 cycles, one of which cost me a job in 1999.

It is expected and not too traumatic if one prepares for it by taking advantage of the up cycles.