U.S. oil production to hit record level in 2018

by Talk Business & Politics staff (staff2@talkbusiness.net) 16 views 

Crude oil production in the United States is projected to rise by 0.5 million barrels per day to 9.3 million barrels per day in 2017, from 2016, according to the U.S. Energy Information Administration. Crude oil production should rise to 9.9 million barrels per day in 2018, surpassing the 9.6 million barrels per day record set in 1970.

The regions supporting the majority of the production increase through 2018 include the tight rock formations in the Permian region in Texas and the Federal Gulf of Mexico.

Production in the Permian region is expected to rise by 0.5 million barrels per day to 2.9 million barrels per day by the end of 2018, from June 2017. The region includes 53 million acres in the Permian Basin of western Texas and southeastern New Mexico and is expected to account for 30% of total U.S. crude oil production in 2018, according to the EIA. In June, 366 of the 915 onshore rigs in the lower 48 states were operating in the Permian region. Rig count is expected to fall to 345 at the end of 2017 before rising to 370 by the end of 2018.

In the Federal Gulf of Mexico, crude oil production is expected to rise to 1.7 million barrels per day in 2017 and 1.9 million barrels per day in 2018. Production rose after eight projects were started in 2016, and another seven projects are projected to be completed by the end of 2018.

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