US oil and gas revival will reach new records in 2024

Significance

Unlike earlier booms based on exploiting new fields, US producers are raising production by adopting new technologies, process efficiencies, economies of scale and financial discipline. This is allowing them to profit from historically-high oil prices, new export markets and still relatively strong economic activity.

Impacts

• Geopolitical risks, such as increased Red Sea shipping attacks, are, for now, a net upside, as they would boost global crude prices.
• Downside risks include slower global economic growth dampening demand.
• Non-OPEC producers such as the United States, Brazil and Canada will raise output, partly offsetting the impact of OPEC+ production cuts.