Total U.S. production rising at fastest pace in 98 years
Pipeline bottleneck in Texas set to ease by end of 2019
Permian producers expect to add three new pipelines and an additional 2 million barrels of oil a day.
August saw the largest annual increase in U.S. oil production in 98 years. The American energy industry added nearly 3 million barrels, roughly the equivalent of what Kuwait pumps, than it did in the same month last year. Total output of 15.9 million barrels a day was more than Russia or Saudi Arabia.
The growth was possible because oil traders decided not to be stymied by the dearth of pipelines. They used rail cars and even trucks to ship barrels out of the region. But pipeline companies unexpectedly increased capacity, in part because they added chemicals known as “drag reduction agents’’ to increase flow. A new pipeline came online earlier than anticipated, and with three more expected between August and December next year, production is poised to soar.