WASHINGTON (AP / BLOOMBERG) – Oil production in the U.S. shale, driven by high oil prices, hit a new record last month. As a result, companies are increasing productivity.
The Permian Basin is located mostly in western Texas. Shale extraction extracts oil and gas from rocks by applying water, sand and chemicals to the ground under high pressure. Average production soared to over 5 million barrels per day (from 159 liters) in January. The energy company EIA said it had broken the 5 million barrel barrier for the first time. Earlier during the corona epidemics, many drilling rigs in the area were shut down due to falling oil prices, but now production is much higher than has been restored.
The EIA intends to further increase production of the Permian Basin, taking advantage of rising oil prices, which have been high for more than seven years. Oil production is also increasing in other large shale fields in the United States.
In September last year, Shell sold its assets in the Permian Basin to industrialist Konocopilips for $ 9.5 billion.
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