US oil just a few years from eclipsing its two largest rivals combined

The world’s biggest petroleum producer isn’t far from pumping more than its two largest rivals combined. By 2025, the US will produce more than 24mn bpd of crude, condensate and natural-gas liquids, exceeding the collective output of Saudi Arabia and Russia, consultant Rystad Energy AS said in a report. That would continue the pattern of meteoric growth in the American oil industry since Opec and its allies began supply cuts in 2017. Opec producers cut back production sharply during December before their next reductions were due to take effect. “US oil activity and production has built significant momentum,” Rystad said on Wednesday. “The growth in US liquids production will naturally be driven by the continuous development of unconventional reservoirs.” America’s shale revolution has curtailed Opec’s power, a shift highlighted when the country briefly became a net oil exporter for the first time in seven decades late last year. That followed 12 months of record crude production, a surge that’s continued into 2019. A recent push to 11.9mn bpd topped Saudi output and Russian supply, both of which are subject to cutbacks. Nevertheless, the boom comes at a cost. Capital spending of $150bn to $190bn will be needed every year between now and 2025 to meet the forecast level, according to Rystad.