US Oil Drilling, Output Moving Higher With Energy Prices

US Oil Drilling, Output Moving Higher With Energy Prices
A rig hand works on an electric drilling rig for oil producer Civitas Resources, at the Denver suburbs, in Broomfield, Colo., on Dec. 2, 2021. Liz Hampton/Reuters
Reuters
Updated:

U.S. oil production forecasts are being revised upwards despite labor and supply chain constraints as higher prices spur more drilling and well completion activity, according to industry experts.

Calls for new oil supplies are being answered by more producers as U.S. prices stay above $100 per barrel, propelled by Russia’s invasion of Ukraine. Prices are up 70 percent year-over-year, offsetting worries of a second pandemic price drop and inflation.