Thursday 14 February 2019

US oil output ‘to soar above 13m barrels per day in 2020’

US crude oil output will reach a new record and soar above 13 million barrels per day (bpd) in 2020.

That's the prediction made in the latest monthly forecast published by the Energy Information Administration (EIA), which expects production to rise by a massive 1.45 million bpd this year to new heights of 12.41 million bpd.

The EIA expects this to grow by a further 790,000 bpd in 2020.

It suggests the spike in output has been enabled by new technologies unlocking increased production from shale formations, as well as continued growth from the Permian Basin and the Gulf of Mexico.

The report also believes oil prices will increase from an average of $59 (£46) per barrel last month to an average of $61 (£47.7) in 2019 and $62 (£48.5) a barrel in 2020.

The latest US auction for offshore oil and gas leases only attracted bidders on around 1% of the available blocks.