• 4 minutes Is The Three Gorges Dam on the Brink of Collapse?
  • 8 minutes The Coal Industry May Never Recover From The Pandemic
  • 11 minutes China Raids Bank and Investor Accounts
  • 42 mins Sources confirm Trump to sign two new Executive orders.
  • 11 mins CV19: New York 21% infection rate + 40% Existing T-Cell immunity = 61% = Herd Immunity ?
  • 6 hours In a Nutshell...
  • 13 hours Why Wind is pitiful for most regions on earth
  • 4 mins No More Love: Kanye West Breaks With Trump, Claims 2020 Run Is Not A Stunt
  • 2 hours A Real Reality Check on "Green Hydrogen"
  • 24 hours During March, April, May the states with the highest infections/deaths were NY, NJ, Ma. . . . . Today (June) the three have the best numbers. How ? Herd immunity ?
  • 16 hours Why Oil could hit $100
  • 9 hours Better Days Are (Not) Coming: Fed Officials Suggest U.S. Recovery May Be Stalling
  • 4 hours Putin Paid Militants to Kill US Troops
  • 4 days Joe Biden to black radio host, "If you don't vote for me you ain't black". That's our Democratic Party nominee ?
  • 2 days Coronavirus hype biggest political hoax in history

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

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