US crude oil production is expected to surpass the all-time high set in 1970 as the Permian region continues to increase output.
According to the EIA, crude production will average 9.4 million barrels per day (b/d) in the second half of 2017, 340,000 b/d more than in the first half of 2017. Production in 2018 is expected to average 9.9 million b/d, surpassing the previous high of 9.6 million b/d set in 1970.
The EIA’s Short-term energy outlook (STEO) projects that most of the production growth in the second half of 2017 will be in the Permian region. It has become one of the more active drilling regions in the US. Production continues to increase, in part, as a result of WTI crude oil average monthly prices that have remained higher than $45 per barrels since the second half of 2016.
The STEO forecast is based on recent drilling and production trends and on anticipated future changes, driven largely by the WTI crude oil price.