Higher Energy Production May Stem from Better Productivity

Oil Pump JackU.S. oil and gas production has reached record-high numbers partly because of better productivity among employees, which would be important for the country’s bid to become the world’s largest oil producer.

A study showed that employees of oil and gas companies increased their hourly output by 108% between 2012 and 2017. As production increases, the need for API 650 tank inspection becomes necessary especially for those who plan to build large-scale oil storage.

Productivity Numbers

The research based its findings on energy investments, the number of workers and the monthly oil output. By May, the current production consists of around 10.7 million barrels per day (bpd), according to the U.S. Energy Information Administration (EIA). The oil and gas extraction industry currently employs 151,500 employees.

Industry output became more productive significantly due to modern drilling techniques. Hydraulic fracturing has been more efficient thanks to data analytics for better accuracy and other technological developments. If the trend continues, some energy executives believe that the country may surpass Russia as the biggest oil producer worldwide in the near future.

Executive Forecast

Pioneer Natural Resources Chairman Scott Sheffield said that the U.S. oil industry might produce more than 11 million bpd of crude by September at the earliest. He expects production to reach 13 million bpd before hitting up to 15 million bpd by 2025 or 2026.

The U.S. outranked Saudi Arabia as the second biggest oil producer in February just behind Russia. The surge in production has led prices in the U.S. to fall within attractive rates for importers, which means demand for overseas shipments should be expected in the next few months.

Better technology served as the key reason behind the increased productivity among oil and gas employees. However, some jobs such as tank inspection and maintenance would require more than just technology advancements. It’s important to ensure that storage remains compliant with industry standards now that export demand may increase in the future.