US crude oil production to hit records over the next two years – EIA
The US Energy Information Administration (EIA) expects US crude oil production to rise by 290,000 b/d to a record 13.2 million b/d this year.
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US crude oil production will continue to be “driven by increases in well efficiency," the US energy agency said it its latest short-term outlook.
“Improved well productivity” will help drive US crude oil production up by another 200,000 b/d, to more than 13.4 million b/d in 2025, the EIA said.
CHART: US crude oil production. EIA
The agency expects US oil output to grow during a period of production cuts from the Organization of the Petroleum Exporting Countries and its allies (OPEC+), which has sought to hike oil prices and “bring a balance” to the oil market.
However, the agency expects US oil production growth to slow with lower drilling activity eventually.
“U.S. crude oil production depends on rig activity and well-level productivity to offset natural declines from existing wells,” the EIA said.
Currently, the total number of active rigs extracting crude oil and natural gas in the US stands at 621, US-based oil field service provider Baker Hughes reported.
The total US oil and gas rig count has declined by 24%, or 156 units, from a year ago.
By Aparupa Mazumder
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