American oil producers, battered by rock-bottom prices in 2016, could be poised for a big comeback and the prospect of creating new jobs for oilfield workers.
The downside? Gasoline prices could head higher for consumers.
USA Today reported that after the Organization of the Petroleum Exporting Countries and several non-OPEC nations agreed to slash production starting next month, oil prices have spiked, fueling hopes among oil producers that the United States’ temporarily downtrodden energy sector will shed 2016’s blues in the new year.
After a record-setting number of bankruptcies for North American energy exploration and production companies in 2016, the sector is poised to reap the benefits of oil’s rebound and a massive increase in productivity powered by technological improvements.
In response to the OPEC action, U.S. shale oil producers are likely to boost production by anywhere from 600,000 barrels per day at a price of $55 to 1.1 million barrels per day at a price of $60, according to Macquarie analysts Vikas Dwivedi and Walt Chancellor. On Thursday (Dec. 29), the benchmark U.S. crude was trading midday at $53.71 a barrel, down 35 cents or 0.65%.
For the full story click here.