Record US Oil Production Projected despite Subdued Growth Plans

According to analysts at Macquarie Group Ltd., US oil production is expected to reach a record pace of about 14 million barrels a day by year-end. This is attributed to falling costs and improved drilling efficiency, despite subdued growth plans from publicly listed companies. Macquarie's previous projection of increased US shale production was proven correct, and its latest forecast stands in contrast to shale-oil explorers' vows to rein in production growth for a fourth straight year. The industry also faces headwinds due to consolidation, which threatens further growth. Notably, the US government expects production to edge up to 13.2 million barrels a day this year.