US crude oil production up

Crude oil production in the US increased for the second consecutive month in November last year. According to the Energy Information Administration (EIA), increased drilling activity in the Permian region, […]

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By Priyanka Shrestha

Crude oil production in the US increased for the second consecutive month in November last year.

According to the Energy Information Administration (EIA), increased drilling activity in the Permian region, which spans Texas and New Mexico, as well as the start of a number of new projects in the Federal Offshore Gulf of Mexico (GOM), more than offset declining production from other regions.

Production averaged an estimated 8.9 million barrels per day (b/d) in 2016.

Monthly crude oil production rose by 232,000 b/d in October and 105,000 b/d in November.

The EIA states: “Current crude oil prices above $50/b, combined with increasing drilling rig counts in several onshore basins suggest US crude oil production will likely continue to increase.

“The February Short-Term Energy Outlook also forecasts year-over-year GOM production to increase by 30,000 b/d in 2017 and by and additional 140,000 b/d in 2018 to reach a total of 1.8 million b/d. Total US crude oil production from the Lower 48 states, the GOM and Alaska is expected to average nine million b/d in 2017 and 9.5 million b/d in 2018.”

The EIA also expects tight oil production in the US to increase in the next decade.

Last December, Russia took the crown from Saudi Arabia as the biggest oil producer in the world in December.

The head of OPEC recently reaffirmed the organisation’s commitment to tackling climate change.