United States Energy Information Administration cut its growth forecast for US crude output in 2019 from an earlier projected year-over year daily increase of 1.14 million b/d to 970,000 b/d. Linn Energy photo.
US crude output expected to hit 11.76 million b/d in 2019
U.S. crude oil production is expected to rise by less than previously expected to 11.76 million barrels per day (bpd) next year, the U.S. Energy Information Administration said on Tuesday.
In its monthly short-term energy outlook, the agency forecast that U.S. crude oil output will rise by 970,000 bpd in 2019. Last month, it expected a 1.14 million bpd year-over-year increase to 11.86 million bpd.
U.S. oil production was forecast to touch a record 12 million bpd in the fourth quarter of 2019 but EIA pared its expectations, saying it was now expected to be about 11.97 million bpd.
For 2018, the agency upped its production estimate to 10.79 million bpd, expecting growth of 1.44 million bpd, according to the report. It previously expected output to rise by 1.37 million bpd to 10.72 million bpd.
U.S. crude production has surged over the past eight years thanks to a shale boom, driven primarily by gains in the prolific Permian basin, which stretches across West Texas and eastern New Mexico.
On the demand side, the EIA expects U.S. oil consumption growth in 2018 to rise by 530,000 bpd to 20.41 million bpd compared with a previous forecast of a rise of 500,000 bpd to 20.38 million bpd.
The agency also and slightly hiked its 2019 demand forecast to 20.67 million bpd from 20.64 million bpd previously.