Good morning, here's what the Oilman has for you today:

• U.S. Oil Production Breaks Record. Again.

• Billionaire of the Week: Vagit Alekperov

• Upcoming Oil and Gas Events

• Tweet of the Day

U.S. Oil Production Breaks Record. Again.

After reaching an all-time high in July, oil production in the U.S. broke that high in August.

The daily average that month was 13.05 million bpd.

Less drilling, more pumping

The record may come as a surprise to some.

It comes as drillers scale back on drilling activity.

But at the same time, industry executives have noted substantial gains in drilling efficiency.

Basically, they are doing more with less.

Again.

Total daily output has added over 1 million barrels from this time a year ago.

Sure, it could have been more but drillers have made it clear they don’t want to add more.

They are adding just as much as they see necessary with the least effort.

A maturing industry

In the early days of the shale boom, everyone drilled just to see how much oil they could get out of the ground.

Nothing mattered but pumping out as much oil as possible and fast.

Of course, this boomeranged, sinking many independents.

But those that survived learned how to be leaner and meaner.

And we are now seeing the results. U.S. shale grew up.

Conventional well output is also up; by the way, it’s not just shale.

And just on time, as OPEC supply remains tight.

Also, sanction danger hangs over Iran and Venezuela again.

Keep pumping, guys.

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Billionaire of the Week: Vagit Alekperov

From rig worker to minister

Vagit Alekperov, the founder and former CEO of Russia’s largest private oil company, Lukoil, started as a rig worker.

His father was also an oil worker in the Caspian Sea. The son followed in his footsteps.

Up to a point.

He started work when he was 18. Later, he got a degree in engineering, and his career took off.

Alekperov did so well that he earned the post of first deputy minister and then minister of oil.

It was still Soviet Union times, but this was about to change very soon.

From minister to oil billionaire

In the early 1990s, after the fall of the USSR, private enterprise flourished.

Alekperov didn’t miss it.

As a minister, he had lobbied for the consolidation of three oil companies.

Then, he took the helm of the consolidated company and called it LUKoil after the first letters of the three companies.

Unlike other oil billionaires, Alekperov never had any trouble with the Kremlin.

Maybe it was his tenure as minister that helped.

In any case, over the following years, Lukoil grew to be not just Russia’s top private oil driller.

It became one of the largest oil companies internationally.

Sanction time

Lukoil was first hit with sanctions in 2014 after the annexation of Crimea.

Then, last year, the company was targeted with more sanctions after the Ukraine invasion.

Since then, Alekperov has resigned as president of the company.

Probably to enjoy his $23.7 billion in peace.

Upcoming Oil & Gas Events

• November 2: LOGA State Industry Series, Benedict’s Plantation, Mandeville, LA

• November 6: Louisiana Energy Golf Open, Oakbourne Country Club, Lafayette, LA

• November 6-8: IPAA Annual Meeting, JW Marriott San Antonio Hill Country Resort and Spa, San Antonio, TX

• November 7: LOGA State of the Industry Series, Petroleum Club of Houston, Houston, TX

• November 8: Colorado Oil and Gas Association 39th Annual Meeting, Denver, CO

• November 8: IADC Annual General Meeting, Hyatt Regency Austin, TX

• November 9: Deepwater Executive Summit, Hyatt Houston West, Houston, TX

Around the Global Patch

🇮🇶 Shifting alliances: Iraq's pivot to Russia and China.
🇫🇮 Finland ensures gas supply amid alert warnings.
🇨🇦 PM Trudeau's firm on carbon tax policy.

Tweet of the Day

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