Crude oil prices are on the rise, thanks to the first consecutive monthly increase in production since April of 2015. A new report from the U.S. Energy Information Administration found that “U.S. crude oil production averaged an estimated 8.9 million barrels per day (b/d) in 2016, and month-over-month U.S. crude oil production increased by 232,000 b/d in October and by 105,000 b/d in November.”
That’s huge, but what’s contributing to the boost in output? According to experts, The Permian Basin, a thriving oil field that stretches across Texas and into New Mexico, is making a major impact, but it isn’t the sole factor in crude oil prices sitting above $50-per-barrel.
In fact, according to Baker Hughes in the article linked above, “rig count increased by 117 rigs since November 2016, with 38% of the increase occurring in regions outside of the Permian.” Will these numbers remain stagnant or drop off? Industry experts predict just the opposite. The same data from the U.S. Energy Information Administration notes that “current crude oil prices above $50/b, combined with increasing rig counts in other onshore basins, suggest U.S. crude oil production will likely continue to increase.”
This is good news for the local economy and can help contribute to America’s energy independence and economic security as a whole. There’s no telling what the coming months will bring, but right now the future looks bright. If you work in the oil fields in the Bakersfield, Fresno or Ventura areas, we may be the commercial fuel or lubricants supplier you’ve been looking for. Give us a call at 661.725.2078.