U.S. oil production to grow 1 million bpd in 2018

The EIA released its monthly Short-Term Energy Outlook today, outlining predicted energy production and consumption through 2018.

The EIA revised its estimates of the 2016 crude supply build, decreasing the expected supply build to 0.8 MMBOPD from 0.9 MMBOPD. Additionally, future inventory balances were revised, with inventory decreasing by 0.1 MMBOPD in 2017 and building by 0.2 MMBOPD in 2018.

Previously the EIA had predicted that the global crude inventory would build by 0.3 MMBOPD in 2017 and decline by 0.1 MMBOPD in 2018. This revision was due to reassessment of historical consumption in China and Africa, which revealed higher levels than previously estimated.

Global Crude Inventories to Decrease in 2017: EIA

The EIA predicts that U.S. crude production will grow more than any other non-OPEC country in the next two years. While production in the U.S. decreased in 2016 by almost 0.3 MMBOPD, production is predicted to grow by 0.3 MMBOPD in 2017 and nearly 1.0 MMBOPD in 2018. Much of this growth is due to tight oil, with the Permian growing by about 0.5 MMBOPD over the period.

Global Crude Inventories to Decrease in 2017: EIA

U.S. natural gas production is expected to increase by 1.3 Bcf/d in 2017, reversing the production decline seen in 2016. Production will further increase in 2018 by about 4.6 Bcf/d. Henry Hub natural gas prices are expected to rise slightly to $3.43/MMBtu in 2017 and $3.70/MMBtu in 2018.The EIA also revised NGL production estimates up, with production increasing by 50,000 BOPD in 2017 and 110,000 BOPD in 2018.

Global Crude Inventories to Decrease in 2017: EIA


Legal Notice