ConocoPhillips Co. said June 30 it would bring back some of the curtailed production in July, joining a growing list of oil producers turning on the taps months after a plunge in demand slammed the brakes on drilling.
U.S. shale drillers had to cut supply by roughly 2 million bbl/d to counter a historic crude price crash stemming from low demand caused by coronavirus-induced lockdowns and a price war between top producers.
However, nearly a quarter of the shut-in production is expected to have been brought back in June, as a recovery in benchmark oil prices to around $40/bbl makes some shale output profitable again.
ConocoPhillips said it would revive production in the Lower 48 region during July, while in Surmont it would increase output from curtailed levels in the third quarter.
Earlier in June, ConocoPhillips said it would restart some of the shut-in production in Alaska.
Shale producers Parsley Energy Inc. and EOG Resources Inc. have also disclosed plans to restore some or all of their output cuts.
ConocoPhillips, the world's largest independent oil and gas producer, had announced the biggest cuts by any North American producer in April, reducing its output by 460,000 bbl/d by June.
Accounting for curtailments and planned turnaround activity, it now expects to report second-quarter production volumes of 960,000 to 980,000 boe/d.
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