In 2017 US oil production was 9.35 million b/dIn 2018 US oil production was 10.96 million b/dIn 2019 US oil production est. is 12.4 million b/dIn 2020 US oil production est. is 13.2 million b/dhttps://www.eia.gov/todayinenergy/detail.php?id=38992
US expects record domestic oil production in 2019, 2020, by David Koenig,
2/12/19. apnews.com.
The
United States expects domestic oil production to reach new heights this year
and next, and that prices for both crude and gasoline will be lower than they
were in 2018.
Government
forecasters are sticking to their forecast that the United States already the
world’s biggest oil producer — will become a net exporter of crude and
petroleum products in 2020.
The
U.S. Energy Information Administration said Tuesday that it expects the United
States to pump 12.4 million barrels of crude a day in 2019 and 13.2 million
barrels a day in 2020. The January average was 12 million barrels a day, up
90,000 from December.
Most
of the increase is expected to come from the Permian Basin in Texas and New
Mexico, where production has been booming for several years as operators use
hydraulic fracturing and other techniques to squeeze more oil and gas from
shale formations.
“The
U.S. energy industry continues to transform itself,” said Linda Capuano,
administrator of the agency, which is part of the Energy Department.
The
agency expects U.S. benchmark crude to average $54.79 a barrel this year and
$58 next year, down from $65 in 2018. It expects internationally traded oil to
average $61 a barrel this year and $62 next year, down from $71 in 2018.
The
2020 price forecast is $3 a barrel lower than the agency had previously
predicted. Capuano said strong growth in oil production worldwide would push
prices lower.
That
should produce nationwide average gasoline prices of $2.47 a gallon this year
and $2.56 next year, down from $2.73 in 2018, according to the agency’s
short-term energy outlook.
Oil
prices tumbled in the last three months of 2018 on forecasts that global
economic growth will weaken and hurt demand at the same time that production is
surging in the U.S.
Concern
about oversupply led OPEC and allies including Russia to agree in December to
limit output during the first half of 2019. On Tuesday, OPEC reported that its
member nations sharply reduced production in January.
The
Organization of the Petroleum Exporting Countries which accounts for about
one-third of global supply said January output fell nearly 800,000 barrels a
day compared with December, to 30.8 million barrels a day.
Nearly
half the OPEC cuts were borne by cartel leader Saudi Arabia, followed by the United
Arab Emirates and Kuwait. Production in Iran, which the Trump administration
targeted for renewed sanctions on oil exports, was little changed from
December.
Russia’s
supply edged lower by 90,000 barrels a day in January, to less than 11.6
million barrels a day, according to the OPEC report. Russia’s production has
been running at post-Soviet records.
Oil
prices rose more than 1 percent on Tuesday.
With
rising production in the Permian Basin, the Energy Information Administration
estimates that U.S. net imports of crude and petroleum products fell from 3.8
million barrels a day in 2017 to 2.4 million barrels a day in 2018.
The
agency forecast that net imports will decline to about 900,000 barrels a day
this year, then turn into a net export of about 300,000 barrels a day in 2020,
including 1.1 million barrels a day in the fourth quarter of 2020.
The
price of natural gas, an important fuel in power generation and home heating,
is expected to rise 4 percent through 2020.
Comments
The US consumption of
oil is 20 million b/d. We currently
import 7.6 million b/d and produce 12.4 million b/d. We use light crude to
produce gasoline.
As we continue to
increase our oil production, we may be able to reach full energy independence
by 2025 and become a net exporter of oil. These exports should help solve our
trade deficit problem.
Norb Leahy, Dunwoody
GA Tea Party Leader
No comments:
Post a Comment