Oil & Gas Market Insights
U.S. to Become The World Largest Oil Producer by end of 2018
According to the latest report by the Energy Information Administration, the United States is now producing approximately 11 million barrels of crude oil per day.
U.S. crude oil production continues to grow, and it continues to surprise everyone on its accelerating growth momentum to the fact that many oil market watchers, including the Energy Information Administration (EIA) and Organization of Petroleum Exporting Countries have revised their forecasts for U.S. crude oil production growth multiple times to accommodate the increasing growth potential in U.S. crude oil output.
The recent forecasts revisions came form both; EIA and OPEC. In its February Short-Term Oil Energy Outlook (STEO), the EIA revised upward its forecasts for U.S. crude oil production by 0.3 million bbl/day to average 10.6 million barrels per day (b/d) in 2018 and 11.2 million b/d in 2019, higher than forecast in the January STEO.
Similarly, in its Monthly Oil Market Report, OPEC revised upward its forecast for non-OPEC supply growth by 250,000 bbl/day, expecting non-OPEC supply growth to stand at 1.4 million bbl/day in 2018. The upward revision was led by bullish expectations of faster than expected production growth in U.S. shale oil.