• 3 minutes Shale Oil Fiasco
  • 7 minutes "Leaked" request by some Democrats that they were asking Nancy to coordinate censure instead of impeachment.
  • 12 minutes Trump's China Strategy: Death By a Thousand Paper Cuts
  • 16 minutes Global Debt Worries. How Will This End?
  • 4 mins DUMB IT DOWN-IMPEACHMENT
  • 2 hours Everything you think you know about economics is WRONG!
  • 2 hours POTUS Trump signs the HK Bill
  • 31 mins Greta named Time Magazine "Person of the Year"
  • 2 hours americavchina.com
  • 3 hours Forget The Hype, Aramco Shares May be Valued At Zero Next Year
  • 23 hours WTO is effectively neutered. Trump *already* won the trade war against China and WTO is helpless to intervene
  • 22 hours Democrats through impeachment process helped Trump go out of China deal conundrum. Now Trump can safely postpone deal till after November 2020 elections
  • 4 hours Winter Storms Hitting Continental US
  • 3 hours Aramco Raises $25.6B in World's Biggest IPO
  • 13 hours Can Renewable Natural Gas Compete With Diesel?
Creating The OPEC Of Natural Gas

Creating The OPEC Of Natural Gas

Global gas supply is growing…

EIA Predicts Higher Oil Prices And A Jump In U.S. Production

Oil rigs

In its latest Short-Term Energy Outlook (STEO), published this month, the EIA revised up its forecast of U.S. crude oil production by 30,000 bpd, or by 0.2 percent, from the October STEO.

Forecasts for next year’s production are increased by 119,000 bpd, or by 0.9 percent, compared to the projections in the October outlook.

One of the reasons for the EIA’s increased forecasts is the fact that it raised its estimate of crude oil prices. The EIA revised up its forecast of WTI Crude prices by $2 a barrel to $56 in November, and by $1 per barrel in both December and January to $55 and $54 a barrel, respectively.

The slight rise in crude oil prices also prompted the EIA to increase its production forecast for the first half of 2020 because of its assumption of a six-month lag between a change in prices and a production response.

The November STEO sees U.S. crude oil production at 12.29 million bpd this year and at 13.29 million bpd next year. The Permian will continue to be the key driver of production growth, the EIA says, expecting the basin’s production to grow by 915,000 bpd in 2019 and by another 809,000 bpd in 2020. 

The Permian will be the key driver of U.S. shale production, which the EIA expects to rise by 49,000 bpd in December to a record-high average of 9.133 million bpd.

However, production growth will slow down and the rig count will continue to drop, as EIA sees WTI prices at Cushing to remain below $55 a barrel until August next year.

In light of the persistently weak oil prices, producers are expected to cut capital spending, which will lead to “notable slowing in the growth of domestic crude oil production over the next 14 months,” EIA said.

 By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play