2017-02-17 19:00:00
U.S. OIL PRODUCTION UP
EIA -
U.S. crude oil production increased for the second consecutive month in November 2016, the first consecutive monthly increase since April 2015. Increased drilling activity in the Permian in Texas and New Mexico as well as the start of a number of new projects in the Federal Offshore Gulf of Mexico (GOM) more than offset declining production from other regions in the fourth quarter of 2016 (Figure 1). In the Permian, increases in the West Texas Intermediate (WTI) crude oil price, up from averaging near $30 per barrel (b) in the first quarter of 2016 to $45/b or higher beginning in the second quarter of 2016, contributed to new drilling. In the GOM, the projects that came online were sanctioned during the 2012-14 period. Current crude oil prices above $50/b, combined with increasing rig counts in other onshore basins, suggest U.S. crude oil production will likely continue to increase.
U.S. crude oil production averaged an estimated 8.9 million barrels per day (b/d) in 2016, and month-over-month U.S. crude oil production increased by 232,000 b/d in October and by 105,000 b/d in November. Production in the Lower 48 states increased 104,000 b/d in October and decreased 2,000 b/d to average 6.7 million b/d in November, while GOM production increased by 85,000 b/d in October and 89,000 b/d in November. Total U.S. production is forecast to average 9.0 million b/d in 2017 and 9.5 million b/d in 2018.
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