U.S. sees record oil production next year moving even higher
U.S. oil production will grow even more than the government previously expected as a scorching price rally drives producers to boost drilling.
Oil output will average 12.6 million barrels a day in 2023, an increase from its previous estimate of 12.41 million, according to Energy Information Administration data. The current annual all-time high of 12.3 million barrels a day was set in 2019. This year’s production forecast was also revised higher to 11.97 million barrels a day from an earlier projection of 11.8 million, the EIA said in its monthly Short-Term Energy Outlook report.
This extra U.S. supply is a welcome boon for U.S, who has asked suppliers to raise production in order to help tamp down energy prices that are contributing to the highest inflation in decades. In the wake of oil prices surging to their highest since 2014, two of the largest U.S. oil companies announced they would increase production by double digits in the Permian Basin, America’s most prolific oil patch.
Prices have rallied with supplies consistently falling short of demand surging around the globe as economies recover from pandemic-era slowdowns. Global consumption is set to reach 100.6 million barrels a day this year, a higher revision from the last estimate of 100.52 million, according to the report. Consumption is expected to rise to 102.5 million barrels a day in 2023.
Global petroleum supply are expected to rise to 101.39 million barrels a day this year. That’s an upward revision from last month’s forecast of 101.05 million. The EIA expects global production will rise further to 103.47 million barrels a day in 2023.