U.S. Foresees Higher Crude Oil Output in 2015 Despite Falling Prices
The U.S. Energy Information Administration expects crude oil production to increase in 2015, despite a 40% drop in global oil prices since June.
“Looking forward, EIA expects 2015 drilling activity to decline as a result of less-attractive economic returns in some areas of both emerging and mature oil production regions,” EIA reports. But “projected oil prices remain high enough to support development drilling activity in the Bakken, Eagle Ford, Niobrara, and Permian Basin, which contribute the majority of U.S. oil production growth.”
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As a result, “EIA expects U.S. crude oil production to average 9.3 million barrels per day (bbl/d) in 2015, up 0.7 million bbl/d from 2014, but down from expected growth of 0.9 million bbl/d” that it projected last month.