EIA: U.S. Oil Production Has Peaked

by Elizabeth Alford on July 13, 2015

A new government report concludes that U.S. oil production has peaked and will decline over the next year.

Related:Birthday of 2014 Oil Crash

The Energy Information Administration released its Short-Term Energy Outlook last week showing that U.S. oil production hit 9.7 million barrels per day in April, the highest level since 1971. Production fell in May by 50,000 barrels per day, and the EIA believes levels will continue to decline through the early part of next year bringing supply and demand back into balance. The report goes on to forecast that production will average 9.5 mb/d in 2015 and 9.3 mb/d in 2016.

OPEC also released its monthly market report for July, that revealed its share of the world’s oil production grew by 0.4 percent to 33.4 percent last month. The group anticipates demand for its crude will grow by 900,000 barrels a day, up to 30.1 million barrels a day.

“OPEC said despite the massive decline in U.S. oil rigs over the last 12 months, the share of technologically advanced horizontal drilling rigs grew from 67 percent a year ago to 76 percent last month, suggesting oil companies are sending more machinery to more profitable and production regions in a migration pattern known as high-grading. But next year, western oil companies are expected to whittle down capital spending 5 percent on oil projects around the world next year, on top of this year’s massive budget cuts, OPEC said.”

Read more at eia.gov

Previous post:

Next post: