U.S. crude oil production is expected to fall by 230,000 bbl/d in 2021 to 11.08 million bbl/d, the U.S. Energy Information Administration (EIA) said on June 8, a smaller decline than its forecast last month for a drop of 290,000 bbl/d.
Oil prices have rebounded to the highest levels in about two years, helped by restraint on supply by OPEC and allies.
The rise has prompted some U.S. producers to increase drilling activity, with rig counts rising for a 10th month in a row in May.
“Because prices of West Texas Intermediate crude oil remain above $60 per barrel during 2021 in the current forecast, we expect that producers will drill and complete enough wells to raise 2022 production from 2021 levels,” the EIA said.
In 2022, production is expected to average 11.8 million bbl/d, up from a forecast average of 11.1 million bbl/d in 2021.
The agency said it expects U.S. petroleum and other liquid fuel consumption to rise 1.49 million bbl/d to 19.61 million bbl/d in 2021, compared with a previous forecast for a rise of 1.39 million bbl/d.
U.S. gasoline consumption is expected to average 8.7 million bbl/d in 2021 and 9 million bbl/d in 2022.
Overall in 2022, U.S. demand is forecast to rise by 1 million bbl/d to 20.61 million bbl/d, compared to the EIA’s previous forecast for a rise of 1.02 million earlier.
Globally, consumption of petroleum and liquid fuels is expected to average 97.7 million bbl/d in 2021, a 5.4 million bbl/d increase from 2020. For 2022, the agency forecasts that global consumption of petroleum and liquid fuels will increase by 3.6 million bbl/d to average 101.3 million bbl/d.
Recommended Reading
Report: Will Civitas Sell D-J Basin, Buy Permian’s Double Eagle?
2025-01-15 - Civitas Resources could potentially sell its legacy Colorado position and buy more assets in the Permian Basin— possibly Double Eagle’s much-coveted position, according to analysts and media reports.
Prairie Operating to Buy Bayswater D-J Basin Assets for $600MM
2025-02-07 - Prairie Operating Co. will purchase about 24,000 net acres from Bayswater Exploration & Production, which will still retain assets in Colorado and continue development of its northern Midland Basin assets.
M&A Target Double Eagle Ups Midland Oil Output 114% YOY
2025-01-27 - Double Eagle IV ramped up oil and gas production to more than 120,000 boe/d in November 2024, Texas data shows. The E&P is one of the most attractive private equity-backed M&A targets left in the Permian Basin.
Ring Energy Bolts On Lime Rock’s Central Basin Assets for $100MM
2025-02-26 - Ring Energy Inc. is bolting on Lime Rock Resources IV LP’s Central Basin Platform assets for $100 million.
Oxy, Looking to Cut Debt, Sells D-J Minerals to Elk for $905MM
2025-03-21 - Elk Range Royalties bought 250,000 net royalty acres in the Denver-Julesburg Basin for $905 million from Occidental Petroleum, which is looking to shed debt after last year's acquisition of CrownRock.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.