How does the oil and gas industry benefit the economy?
- What is the current output of OPEC?
- How much oil is the US producing?
- Why do OPEC+ output cuts help the economy?
OPEC member states produce roughly 40% of the world’s oil, with their exports accounting for around 60% of global petroleum trade. According to OPEC’s estimates in 2021, its member countries held over 80% of the world’s proven oil reserves. Given the group’s significant market share, its decisions hold considerable influence over global prices.
The United States remains the top producer of crude oil and petroleum liquids worldwide. Following a dip to less than 10.0 million b/d in mid-2020, U.S. crude oil production rebounded significantly to reach 13.3 million b/d by late 2023, thanks to improved drilling efficiency.
OPEC+ believes that implementing output cuts can play a crucial role in boosting the economy. By reducing oil production, OPEC+ aims to stabilize market conditions, foster price stability, and support economic recovery.