The US saw tremendous growth in oil production from 2017 to 2019 when oil prices were lackluster. Prices are much higher today, which should be a greater incentive for ramping output, but US production is growing moderately.
Why is US oil production not growing more? This is a question that has confounded many people from politicians in Washington to anyone that has experienced sticker shock at fuel pumps this year.
Today’s note digs into US oil production trends, the factors limiting growth, and how this is arguably a good thing for energy infrastructure companies.
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