Along with slower global demand growth, surging U.S. oil production has been the primary bearish factor in the oil market.
Per U.S. Department of Energy numbers, domestic crude output is at all-time records of 12.6 million b/d, some 80% of all U.S. liquids supply.
The industry has deployed constant technology and efficiency gains to compensate for less CAPEX investment and drilling.
To illustrate, since July 2018, even as the total number of oil-directed rigs has fallen by more than 20% to the 685 range, crude production has still risen by another 1.6 million b/d.
