The Saudis pushed for the deeper cuts, but only on the condition that oil producers pledge to abide by the 1.2 million bpd in cuts already in effect. According to research consultancy Rystad, non-OPEC oil production will grow 2.26 million bpd in 2020, led by 1.35 million bpd from shale fracking. The world currently uses 100 million bpd of petroleum, with OPEC supplying 34 million bpd. Oil at $75 would be sufficient to spur a U.S. drilling frenzy of 24,700 wells per year and grow shale output beyond 12 million bpd. Bernstein analysts believe decline rates on aging shale wells are underestimated and that shale production will peak in 2024.

Source: Forbes December 05, 2019 18:56 UTC