By Stephen Cunningham and Jessica Summers
At the same time, trade disputes and escalating tensions in the Persian Gulf have clouded the outlook for the Organization of Petroleum Exporting Countries, which is expected to extend current output cuts next week.
“It really means that OPEC has to make a decision to balance the market or shale will do it for them,” said Jim Lucier, managing director of Washington, D.C.-based Capital Alpha Partners LLC. “Despite all the talk about Wall Street forcing capital discipline, we’re not seeing any diminishing production yet.”
Crude output from the Permian is expected to jump 50% by 2025, according to BloombergNEF. ESAI Energy forecasts crude and condensate from the Bakken, another prolific play, will surpass record output into next year.