US continues to increase oil production


Despite the decrease in oil prices, oil production in the U.S. is increasing. According to a statement issued by the U.S. Energy Department, daily oil production in the U.S. this year will increase by 600,000 barrels thereby reaching 9.3 billion barrels in total. And next year, daily production is expected to increase by 200,000 barrels thereby reaching 9.5 billion barrels in total. While OPEC is shifting its official policy to hinder the rock gas production boom in North America, the oil price has declined nearly 60 percent since June 2014. The Energy Department said that many oil companies suspended their plans about opening new wells because of the drastic declines in oil prices but the current production in the present wells is high. The Energy Department also said that the rock gas industry in the U.S. is more powerful than previously expected. Some analysts, on the other hand, are not as optimistic as the department. Some guess that shrinking investments will have an impact on production by the end of the year.Analysts were divided into two groups regarding the struggle between OPEC and rock gas producers. While some analysts assert that rock gas producers in the U.S. will not make a profit with the current prices and thus cannot make the required payments while others claim that OPEC is not as powerful as before and it is doomed to lose market share.