U.S. crude oil production is expected to rise by 1.25 million barrels per day (MMbbl/d) in 2019 to a record of 12.24 MMbbl/d, the U.S. Energy Information Administration (EIA) said on Sept. 10, slightly lower than its previous forecast for a rise of 1.28 MMbbl/d.
The output in 2020 is forecast to rise by 990,000 bbl/d to 13.23 MMbbl/d, according to the EIA.
“EIA’s September Short-Term Energy Outlook continues to forecast record U.S. crude oil production in 2019 and 2020,” EIA Administrator Dr. Linda Capuano said.
U.S. crude output has surged to records above 12 MMbbl/d this year, thanks to gains from the Permian Basin spanning Texas and New Mexico, the biggest oil patch in the country. The United States is now the world’s largest producer, ahead of Saudi Arabia and Russia.
Still, the rate of growth has slowed, with U.S. energy firms reducing the number of oil rigs operating for the ninth straight month to its lowest since January 2018 as most producers cut spending on new drilling this year.
A trade war between China and the United States, the world’s two largest economies, has roiled financial markets and sparked worries about economic and oil demand growth.
The EIA also cut its 2019 world oil demand growth forecast by 110,000 bbl/d to 890,000 bbl/d. In the monthly forecast, the agency cut its world oil demand growth estimate for 2020 by 30,000 bbl/d to 1.40 MMbbl/d.
Meanwhile, the EIA forecast U.S. oil demand for 2019 to rise by 140,000 bbl/d to 20.59 MMbbl/d, down from 210,000 bbl/d in its previous estimate. The agency also estimates U.S. oil demand will rise by 260,000 bbl/d to 20.85 MMbbl/d in 2020, lower than a previous forecast of a 260,000 bbl/d increase.
Schlumberger outlined an aggressive cost-cutting plan for its North American operations as the world's largest oilfield service firm contends with sharp declines in U.S. shale activity.
The expedited closing of the $2.3 billion all-stock acquisition of Jagged Peak Energy allows Parsley to “hit the ground running on ... capturing tangible synergies,” says CEO Matt Gallagher.
There goes the neighborhood? In early spring 2019, Exxon Mobil announced it would turn its Permian Basin position into a kind of dreadnought, raising questions about how it will coexist with its neighbors.