A.D. November 2021, the worst month for crude oil production since March 2020, came as US oil producers prepared their 2022 capital budget plans.
The price drop sent WTI Cruise The US shale patch is not as bad as it was two years ago, when producers were digging at high speeds and spending most of the money, up from $ 80 in early November until early December. – To new wells.
The current downturn does not surprise American oil producers. They are expected to increase their budget for the coming year, keeping in mind that volatility in oil prices will remain here and that any new covities could plunge the market into panic.
The U.S. Petroleum Industry Bid management is cautious about its oil and gas policies and is not in a hurry to invest in new drills, and the administration has called for OPEC + to increase its restrictions on drilling on U.S. federal land. Oil companies are under investigation by the administration to increase the price of gasoline in seven years. Their greed “for profit” And get involved “Inflation”, Senior US officials and Democratic lawmakers, such as Senator Elizabeth Warren, have said in recent weeks.
As oil prices begin to improve this year, Shell Patch is cautious about its future plans and no one is spending more than they can afford. Excavation activity Has started lifting.But it is measured and gradually measured because oil producers want to reward their shareholders with a record cash flow.
Energy analyst David Blackmon argues that some manufacturers may have missed out on opportunities to drill and increase production by $ 80 in recent days. Forbes.
However, Following the recovery of oil prices and prices in the wake of the 2020 pandemic, the suspension and return to shareholders was the right thing to do this year.
U.S. oil companies have learned from past mistakes and are not “forgetting themselves,” as they did before last year’s fall.
TRestad Energy Rates between Shell-based companies have reached a record high of Q3 and are declining further this quarter, excluding the major ones, Rystad Energy said. He said. last month.
“While there will be no strong upside for next year, huge profits are expected in the third quarter and medium growth in 2022,” the research firm said. He said. In November.
Rystad Energy sees U.S. companies increase overall costs At 19.4 percent A.D. By 2022, $ 83.4 billion, the highest level since the outbreak. This indicates that the industry is emerging from a long period of instability and volatility, the research company added.
The volatility of the oil market is expected to continue to fluctuate as health professionals and vaccinators study the new covari diversity. But US shell producers have maintained their position and are planning to provide flexibility and rewards to shareholders.
However, it is not just the uncertainty and volatility of the oil market that has caused the United States to be cautious about future plans. The Biden administration’s oil policies — in essence making them more expensive to produce crude — are of no use.
House approves President Biden’s climate and social account – now leading to the Senate – Mike Somers, president and CEO of the American Petroleum Institute (API) He said., “This draft would impose US energy taxes, restrict the use of our own resources, and develop a ‘extra oil importer’ strategy that this administration was pursuing as a solution. We urge the Senate to reject these misguided policies and focus on climate change and reduce emissions and provide Americans with the energy and energy that this sector provides on a daily basis.
OPEC + calls on US to seek and reduce production He said., “The worst thing a government can do about energy prices is to limit supply by implementing policies that make it difficult to produce energy.”
The group also pointed out that there are domestic solutions to reduce energy costs, such as ensuring sustainable oil and gas production on federal land and water, rational regulations on methane and additional fees and taxes limiting capital and investment capital and not paying more taxes to the industry. Raising costs.
The U.S. government is unhappy with OPEC +’s continued involvement in oil supplies, but this is the case in the United States.
“I think you stay home first, you ask your friends, and you ask your neighbors to do it. And then if we can’t do it, call other countries, ”said Vicki Holub, executive director of Occidental. CNBC last month.
By Tsvetana Paraskova for Oilprice.com
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