U.S. Oil Industry Is Getting Ready to Boost Production

• (Photo : Delfino Barboza via Unsplash)

Recently, leaders of some of the world's biggest oil companies announced that they are getting ready to increase their crude production as gasoline prices in the U.S. reach $4 a gallon - a high that has not been seen in over a decade, inconveniencing millions of U.S. households.  The reason behind this rushed but necessary decision is President Joe Biden's and Congress' stance on banning imports of Russian petroleum - however, there is a downside to be considered as the "companies warned not to expect new supplies overnight." reports the BBC.

Exxon Mobil and Chevron take urgent action

Oil production is being boosted by two oil majors, Exxon Mobil and Chevron at the Permian Basin field in West Texas and New Mexico. What's interesting to note is that both companies had plans for increased production in 2021, however,  they have just now decided to act on it urgently in the wake of recent developments in Russia, which resulted in the drastic price surge - the highest level in 14 years.

Increased production and skyrocketing prices 

While everything is expected to go smoothly, increased and urgent production often means compromised safety for the oil rig workers. This is why employers as well as employees are encouraged to seek advice from an expert oilfield injury lawyer to avoid any complications, should the worst occur. 

Crude oil prices in the U.S. practically jumped overnight from $10 to $130 per barrel. The increase occurred right after it was announced that "the U.S. was considering prohibiting Russian oil imports... That rally has driven retail gasoline prices up more than 46 cents in the past week, reaching a national average of $4.06 a gallon." according to CNBC News.

3 million extra barrels per day to be expected

During the early months of 2020, U.S. oil production had plunged due to the covid outbreak. Like many industries, the oil industry was also driven to slow down production (some companies even had to shut down drilling and face bankruptcy).  In the summer months of 2020 - starting in August, production slowly but surely climbed back, which meant that companies started to add 2 million barrels per day in order to reach the required 11.6 million barrels which was expected by late February.

Increased production is expected to continue and at least 1 million additional barrels are set to be added per day to meet new expectations.