One of the most important questions in the global oil markets revolves around U.S. oil production. There is probably nothing OPEC would like to know more than when U.S. oil production will begin to decline.
The resurgence of U.S. oil production over the past decade diminished OPEC's control of the global oil markets. In less than eight years, U.S. oil production climbed from under 6 million barrels per day (BPD) to more than 12 million BPD. This surge is arguably the only reason oil prices today aren't above $100/barrel (bbl).
OPEC's current strategy seems to be to wait for U.S. production to begin declining so they can begin to regain control of the oil markets.
They may not have to wait all that long.
In last week's article, I covered the slowdown in oil production growth in the Permian Basin. This is the most important oil-producing region in the U.S., but of course it isn't the only one. And while most of the coverage of the resurgence of U.S. oil production has been primarily focused on shale oil and tight oil, U.S. offshore oil production has also made a big jump. Over the past decade, Gulf Coast oil production in the U.S. rose from about 1.2 million BPD to about 2.0 million BPD.The whole article can be read by clicking right here.