Crude oil production in the US could surpass the highest record set in 1970 driven by tight oil.
The Energy Information Administration (EIA) forecasts that US crude oil production will average 10.7 million barrels per day in 2018 and 11.7 million b/d in 2019. If both are realised these levels would surpass the previous record of 9.6 million b/d set in 1970.
The Permian region in western Texas and eastern New Mexico is expected to account for more than half of the growth in crude oil production through 2019.
The EIA expects Permian region production to average 3.3 million b/d in 2018 and 3.9 million b/d in 2019. It says: ‘Although favourable geology combined with technological and operational improvements have contributed to the Permian region becoming one of the more economically favourable regions for crude oil production in the US, recent pipeline capacity constraints have dampened wellhead prices for the region’s oil producers. Lower wellhead prices in the region are contributing to slower growth in Permian crude oil production in 2019 compared with 2018.’
It forecasts that the Bakken region will hit record-high production in 2018, averaging 1.3 million b/d and growing to 1.4 million b/d in 2019. In Eagle Fore it expects production will increase by 105,000 b/d from 2018 to 2019 to average 1.5 million b/d.