“U.S. shale oil drillers have responded rapidly to the surge in crude prices since the start of the Iran war by ramping up production, but output gains are likely to be far more constrained than in the previous shale boom.

The loss of around 13% of the world’s oil supplies due to the blockade of ​the Strait of Hormuz following the outbreak of the war on February 28 has been a boon for the U.S. oil industry. Benchmark U.S. crude prices have risen roughly 60% since then, to ‌around $107 a barrel.

U.S. crude exports have also soared by over 60% from pre-war levels to a record high of nearly 6.5 million barrels per day last month, according to the Energy Information Administration. That has helped plug a significant supply shortfall in Asia and Europe, reinforcing the United States’ role as the world’s new swing producer.

U.S. oil production has jumped in recent weeks, reversing the steady decline seen at the beginning of this year. Production rose to 13.7 million bpd, as of May 8, from 13.6 million bpd a week earlier, EIA data ​showed.

It is now expected to exceed 14 million bpd for the first time in 2027, higher than previously forecast, according to the agency’s Short-Term Energy Outlook.”

From Reuters.