U.S. crude oil production will rise 1.36 million barrels per day (bbl/d) to 12.32 million bbl/d in 2019, 140,000 bbl/d less than previously forecast, according to a monthly Energy Department report on June 11.
In 2020, U.S. crude production is expected to rise 94,000 bbl/d, 1,000 bbl/d more than previously forecast, said the report from the U.S. Energy Information Administration (EIA), the statistical arm of the Energy Department.
Despite the slowdown this year, the agency expects U.S. output to continue to set new records in 2019 and 2020, culminating with average production of 13.5 million bbl/d by the end of 2020, EIA Administrator Linda Capuano said after the data was released.
Booming U.S. output, largely due to onshore growth from fracking and horizontal drilling, has boosted the country to be the world's top crude producer, surpassing Russia and Saudi Arabia.
Production gains in 2019 and 2020 will largely be driven by onshore output, with growth in the offshore Gulf of Mexico expected at 190,000 bbl/d in 2019 and 130,000 bbl/d in 2020.
More demand could be around the corner with offshore rig tenders as oil and gas companies step up drilling plans and final investment decisions.
U.S. energy firms this week cut the most oil rigs in about four months, with the rig count falling to the lowest since January 2018, as producers cut spending on new drilling and completions.
A Powder River Basin discovery by Chesapeake, LLOG files Gulf of Mexico plan and a triple-lateral horizontal completion in South Texas top this week’s drilling activity highlights from around the world.