Skip to 0 minutes and 1 second Shale gas revolution began to expand into shale oil evolution beginning 2013. The table now you’re seeing shows how fast U.S. shale oil production increased between 2013 and 2015. U.S. tight oil production increased to more than 50% of total US oil production in 2014. One of the tables shows that in 2013 total US oil production was 7.5 million barrels per day, in 2014, 8.5 million barrels per day and 2015, 9.2 million barrels of oil per day. In 2016, it is expected to become 9.6 million barrels of oil per day. And out of this total US oil production… how much shale oil production out of this…
Skip to 0 minutes and 58 seconds and according to the table in 2014 more than fifty percent of total oil production was coming from shale oil production which is quite surprising. More interestingly, what happened after oil prices began to fall in the June of 2014? Now, another table that you are watching shows that there are three interesting time points. You have to focus on April 2014 and February 2015 and February 2016. Now, first April 2014, just before the oil prices began to fall, how much the total shale production? According to the table, 4.2 million barrels of oil per day (was being produced). Now, how much shale oil production (was being made) after the oil prices began to fall?
Skip to 2 minutes and 3 seconds Like for instance, February 2015, what was the total shale production amount? 5.5 million barrels oil per day. Why this is important? Shale oil production continued to increase under low oil prices. The only thing we have to remember is that shale oil production, as I said, continued to rise even under low oil prices. But according to the third table you are seeing, shale oil production began to slowly decrease, beginning June of 2015. Therefore, if you look at the table that shows the shale oil production amount February 2016, total shale oil production decreased to 5.0 million barrels of oil per day which is a decrease of about 500,000 barrels of oil compared to February of 2015.
Skip to 3 minutes and 9 seconds So now finally, U.S shale oil production began to be affected by low oil prices. But (regarding) what will happen, you know, in the remaining of 2016 and 2017-18, we have to closely observe whether or not US shale oil production (will) continue to be sustainable under low oil prices. And how long low oil prices will be sustained, that is something that, I think, we have to further examine.
US shale gas and tight oil production
With the fall of oil prices beginning in 2014, shale oil and gas production has begun to show signs of slowing down since 2015.
© Younkyoo Kim, Hanyang University