Goldman Sachs: US shale oil production will see blowout in a few years

Goldman Sachs released a report on Tuesday (March 21) that US shale oil production is expected to increase by 1 million barrels per day in the next few years as new US oilfield projects are put into production. Further aggravating the oversupply problem in the global oil market.
Goldman Sachs said: "The largest new oilfield production blowout in US history will occur from 2017 to 2019, as capital expenditures for related projects began to show results in 2011-2013."
The recovery of US shale oil production has always been regarded as the biggest threat to OPEC's production reduction action. If the recovery rate is accelerated, the effect of the production reduction action on oil prices will be limited, and even the differences in production cuts will not be ruled out. Increase the results.
Goldman Sachs analysts said: "(OPEC's production cuts) inadvertently increased the size of the US shale oil producers' financing in the credit market, thus boosting the 2011-2013 capital expenditures to 2018."
As US shale oil production continues to rise, OPEC will have to face the risk of long-term market share loss, which will increase the uncertainty of production cuts.
Goldman Sachs analysts added: "The US shale oil producers are currently welcoming excellent opportunities to increase production and are expected to push production to peak in the next six to nine months. In this environment, OPEC's most reasonable approach is Maximize market share through lower production costs, but this will lead to short-term market imbalances."
Reuters last week's survey showed that if OPEC wants to continue to stabilize oil prices, it must start extending production cuts at the end of June, so that the market can absorb excessive stocks.

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