U.S. Oil Production to Grow 4% in 2017, 7.5% in 2018: EIA
Canada’s oil production rose in February, up 4% YoY
Shale producers will continue pumping more and more hydrocarbons according to the latest analysis from the Department of Energy. The EIA released its Short Term Energy Outlook for the month of May yesterday, outlining expectations for energy markets in the immediate future.
U.S. crude oil production averaged 9.1 MMBOPD in April, 0.6 MMBOPD above the bottom of the downcycle in September 2016. The EIA forecasts that overall U.S. crude production in 2017 will average 9.3 MMBOPD, up from 8.9 MMBOPD in 2016. This growth will continue, as production in 2018 is predicted to grow by 7.5% to 10 MMBOPD. The EIA has revised its oil price forecast down slightly, and now expects WTI to average $51/bbl in 2017 and $55/bbl in 2018.
Natural gas production will grow as well, though not as quickly as oil production. The EIA predicts that the U.S. will produce 74.1 Bcf/d of gas, up 2.5% from the 72.3 Bcf/d produced in 2016. This growth will reverse the decline seen in 2016, as lower commodity prices constrained production. In 2018, the EIA predicts that U.S. natural gas production will grow a further 4% to 77.3 Bcf/d
Written by Oil & Gas 360 at oilandgas360.com