Top U.S. shale oil producers are increasing output by extracting more from each well, but they are not adding significant new volumes due to a lack of activity. These companies, which revolutionized the global oil and gas markets a decade ago, have shifted their focus to maintaining rather than expanding production. This strategy has allowed them to achieve strong profits with only modest increases in volume.
The companies that a decade ago upended global oil and gas markets and turned the U.S. into an oil-export powerhouse in recent years have been less of a factor because of a shift to maintain, but not significantly expand, their production.
U.S. producers expect to inch production higher for the rest of the year, according to second-quarter forecasts, by squeezing more oil and gas from each well. The gainsExecutives at top shale producers say they have fine-tuned their production techniques to push volumes 2% higher in the next six months with little effort.
, which drills in the Bakken shale in North Dakota, has raised its 2023 Bakken output target by 10,000 bpd, or about 6%., the second-largest shale producer, also raised its estimate of full-year output by about 3% despite cutting one drilling rig and paring its budget.Pioneer's average well productivity is running about 12% higher than 2022 levels, it said, crediting longer wells and lower costs for fracking.
"We expect pretty moderate growth due to operator discipline and constraints on the oilfield service side," said Chetan Sharma, a senior associate with energy technology firm Enverus.
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