Despite a reduction in the number of operating rigs and slipping oil prices, domestic shale drillers have announced plans for continued production growth.
The Chicago Tribune reports that companies including Devon Energy, Continental Resources and EOG Resources have shared expectations that they will produce more from key holdings, while scaling back production in certain other plays. Some industry analysts have compared this move to a game of "chicken" with Saudi Arabia and other OPEC nations to see who will act to stem falling prices.
"Certainly if prices fall even further than they are now, it'll have some impact, and it may slow the growth rate of U.S. production," Jason Bordoff, founding director of Columbia University's Center on Global Energy Policy in New York told the source. "I still think, unless they fall significantly further, U.S. production is going to see dramatic increases in growth."
Domestic production recently topped 9 million barrels a day, the highest rate of production seen since 1983, according to the U.S. Energy Information Administration. Prices fell to $74.21 on Nov. 13, the lowest close since 2010.
However, oil drilling companies have shown little sign of slowing. EOG Resources pumped 293,000 barrels of crude a day in the third quarter, and announced plans for "double-digit" growth in 2015. Halcon Resources released an earnings forecast which predicted next year's growth to reach as much as 20 percent.
In this pivotal time for the energy industry, it is important that outside perspective be included to gain an "above-the-fray" view on current processes. Oil and gas management consulting can help producers be more in tune with market demands, and field teams that are aligned with organizational objectives.