Crude oil production to hit record, winter heating costs to increase

U.S. crude oil production is expected to rise 340,000 barrels per day to 9.4 million barrels per day in the second half of 2017, from the first half of the year, according to the U.S. Energy Information Administration. In 2018, production is projected to increase to 9.9 million barrels per day, which would surpass the previous high of 9.6 million barrels per day in 1970.

The majority of growth in production will be in the Permian region, which includes western Texas and southeastern New Mexico. Production there continues to rise partly because the West Texas Intermediate crude oil prices have remained more than $45 per barrel since the second half of 2016.

“In the lower 48 states, rig counts typically follow changes in the WTI price with an approximate four-month lag,” according to the EIA. “Changes in the number of active rigs lead to changes in production volumes within about two months.”

WINTER HEATING COSTS TO RISE

Most households in the United States can expect to spend more on heating their homes this winter than the previous two winters, according to the U.S. Energy Information Administration. This cost is expected to be greater this winter because it is projected to be 13% colder than the previous one and fuel prices will be slightly higher.

Natural gas in the most common space heating fuel in every region except the South, where electricity heating is the most common.