Daily Management Review

US shale oil companies expect to restore a quarter of production lost due to COVID-19


By the end of June, American shale companies will return to the market about 500 thousand barrels of oil per day, which is about a quarter of the volume of US production that fell due to a pandemic, Reuters reports citing sources.

"It is expected that US shale companies will restore production of about half a million barrels of oil per day by the end of June, which is about a quarter of the volume by which the production was reduced against the backdrop of the COVID-19 pandemic," the agency said citing unnamed market participants.

Continental Resources shale company said on Thursday that it expects to return about 20% of its production in July due to increased oil prices. Now the company expects that its production in July will average 225-250 thousand barrels per day, and in the second quarter - 200 - 205 thousand barrels per day, the agency notes.

Oil and gas giant ConocoPhillips said in mid-June that it also intends to resume part of its reduced production over the next few months, and expects to restore production at its facilities in Alaska already in July.

On June 9, the US Department of Energy in a monthly short-term forecast lowered the forecast for oil production in the country for 2020 by 130 thousand barrels per day - to 11.56 million barrels, and in 2021 - by 60 thousand barrels, to 10.84 million barrels per day.

source: reuters.com