In the past several years, the U.S. has grown its oil production at the fastest rate since the 1960s, and the country was the fastest-growing oil producer in the world between 2011 and 2012. For a while, OPEC hasn't been sweating the threat of U.S. production. Only a couple months ago its leaders announced that it has no plans to change its production volumes despite the change in the global oil landscape. Well, that idea has been completely turned on its head: OPEC recently announced that it is considering a plan to cut its output ceiling by 500,000 barrels per day by the end of the year in order to keep oil prices at profitable levels for the oil cartel.
In some ways this is a feel-good story for American energy production, but what does it actually mean for the energy space? For one thing, it is a sign that oil prices will probably remain high for a while longer, which should be a relief for companies with major exploration and development projects going on. Chevron (NYSE:CVX) recently said that it saw a drop in production in part due to lower oil prices, so a reduction in OPEC's output could be a good sign for Chevron and its peers as they try to bring their major projects to fruition. Tune into the video below where Fool.com contributor Tyler Crowe looks deeper into why OPEC is reconsidering the surge in U.S. production, and highlights some of the companies that could benefit from this move.
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