U.S. oil production dipped by 61,000 barrels daily in May, the EIA reported this week, confirming what many already expected: continued stringent discipline among drillers. But those expectations may have been misleading because now some producers are planning output boosts—thanks to cost reductions. Last year, shale drillers surprised pretty much everyone by increasing their production considerably despite a drop in drilling rigs. The increase came thanks to improved drilling efficiencies that drove production costs down and output up. This…
