Americas News
EIA Cuts 2015, 2016 U.S. Crude Production Forecast, but its Still on Track to be Highest Since 1972
Alongside a 60 percent drop in benchmark prices since last summer, which is said to have slowed shale output, the U.S. Government Tuesday lowered its national crude oil production forecasts for 2015 and 2016, Reuters reports.
The U.S. Energy Information Administration's (EIA's) short term forecast for 2015 U.S. crude oil production growth is said to have been lowered to 650,000 barrels per day (bpd) from 750,000 bpd, while 2016's predicted amount of production decline has been altered from 150,000 bpd to 400,000 bpd.
"While U.S. crude oil production this year is expected to be 100,000 barrels per day less than previously forecast, oil output is still on track to be the highest since 1972," said Adam Sieminski, Administrator with the EIA.
EIA's forecast for 2015 U.S. oil demand growth has reportedly remained unchanged from last month at 400,000 bpd, while 2016's demand growth forecast was raised from 130,000 bpd to 190,000 bpd.
U.S. crude futures on Tuesday were said to have been trading at session lows, and close to 2015 lows, alongside an EIA forecast that U.S. oil production from the largest shale plays is likely to see its fifth consecutive month of decline in September.
Recent data from the U.S. government was said to show that the largest decline in oil production since July 2011 was seen in May as producers were faced with falling oil prices due to the global supply glut.
In June, it was reported that EIA has contracted with Leidos Corporation (Leidos) to analyse the impact of Emissions Control Areas (ECAs) in North America and the Caribbean on ocean-going vessel fuel usage.
