• 2 days Nuclear Bomb = Nuclear War: Saudi Arabia Will Develop Nuclear Bomb If Iran Does
  • 2 days Statoil Changes Name
  • 2 days Tillerson just sacked ... how will market react?
  • 1 day Russian hackers targeted American energy grid
  • 1 day Is $71 As Good As It Gets For Oil Bulls This Year?
  • 2 days Petrobras Narrows 2017 Loss, Net Debt Falls Below $85bn
  • 2 days Proton battery-alternative for lithium?
  • 2 days Ford Recalls 1.38 Million Vehicles (North America) For Loose Steering Wheel Bolt
  • 1 day Oil Boom Will Help Ghana To Be One Of The Fastest Growing¨Economies By 2018!
  • 1 day Country With Biggest Oil Reserves Biggest Threat to World Economy
  • 2 days I vote for Exxon
  • 2 days UK vs. Russia - Britain Expels 23 Russian Diplomats Over Chemical Attack On Ex-Spy.
  • 2 days Why is gold soooo boring?
  • 2 days South Korea Would Suspend Five Coal - Fire Power Plants.
  • 1 day Spotify to file $1 billion IPO
The Oil Crisis That Can’t Be Stopped

The Oil Crisis That Can’t Be Stopped

Venezuela’s oil production is continuing…

Is Tesla About to Collapse?

Is Tesla About to Collapse?

The remarkable resilience of Tesla…

Zainab Calcuttawala

Zainab Calcuttawala

Zainab Calcuttawala is an American journalist based in Morocco. She completed her undergraduate coursework at the University of Texas at Austin (Hook’em) and reports on…

More Info

EIA: U.S. Oil Production To Break Record In 2018

Permian Basin

New data from the Energy Information Administration (EIA) shows the United States on track to produce crude oil at record numbers in 2018, according to a new report by Market Watch.

March’s estimates for output next year had domestic oil production at 9.73 million barrels per day, but this month, the agency predicts a jump to 9.9 million for the same time period.

Based on EIA records that date to 1859, the newly forecasted production levels would be the highest to date.

“U.S. crude oil production is expected to be higher during the next two years than previously forecast, with annual output in 2018…exceeding the previous record level of 9.6 million barrels per day reached in 1970,” Howard Gruenspecht, the EIA’s acting administrator, said in a statement Tuesday.

But experts say high growth in American shale oil ventures could mean even the new forecasts could be too low.

“The main driver is the growth in shale production,” said James Williams, an energy economist at WTRG. “We could easily be at 9.9 [million barrels a day] by next April. I think the average next year should be above 10 million b/d unless the oil price collapses.”

Rapid growth in American shale output has prompted Saudi oil officials to warn of extended oil price volatility if the production hikes continue.

Related: Wall St. Gears Up For The World’s Biggest Oil Trade

We will not bear the burden for free riders this time,” Saudi Oil Minister Khalid told reporters in Houston last month. “Saudi Arabia will not allow itself to be used by others.”

“This is for the benefit of all,” the official added, referring to the Organization of Petroleum Exporting Countries’ (OPEC) recent deal to reduce the bloc’s output by 1.2 million barrels. The group is currently in the process of deciding whether or not to extend the cuts through the second half of 2017.

By Zainab Calcuttawala for Oilprice.com

More Top Reads From Oilprice.com:

Join the discussion | Back to homepage

Leave a comment
  • Kr55 on April 12 2017 said:
    It will be needed to meet demand with production falling all around the world in higher cost production.

    Role reversal now in the market. Earlier in the year it was longs using up dry powder to defend their position. Now it's the shorts.

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News