U.S. Oil Producers Face Supply Chain Shortages as Demand Rises

According to an article by Reuters, executives at oilfield service firms report that U.S. oil producers are struggling to find enough crews, vehicles and equipment to take advantage of rising global demand and a seven-year high in crude prices. This could mean it takes longer for global output to match demand, resulting in drained inventories and higher prices.

Higher energy prices are fueling consumer inflation, which reportedly hit 6.2% last month, the highest in 30 years. The drillers and service firms that bring new oil and gas to market are facing shortages and delays in trucks, electronics, pumps and skilled workers.

The Reuters article reports that U.S. oil production output remains at 1.8 million barrels per day below the peak reached nearly two years ago; global demand is forecast to exceed pre-pandemic levels by June.