U.S. oil production will hit a record high in 2023

2022-05-05 0 By

Next year, U.S. oil production could reach 12.6 million barrels a day, which would be a record annual average.Oil production has grown strongly, reaching 11.8 million b/d in November — the most recent month for which EIA has hard data.It is also growing and is expected to reach 12m b/d this year.The increase in U.S. production and OPEC+ production has prompted the EIA to revise its Brent and WTI price forecasts for this year.Authorities now expect Brent crude to fall to about $75 a barrel by the end of the year, compared with an annual average of $82.87.For WTI, the authority expects an average price of $79.35 per barrel in 2022.”We expect Brent crude oil prices to average $90 / BBL in February, as we expect continued declines in global oil inventories to keep crude oil prices near current levels in the coming months,” the EIA said.”However, we expect downward pressure on prices to emerge mid-year as Opec +, US and other non-OPEC production increases outpace the slowdown in global oil consumption growth.”U.S. drillers finally appear to be succumbing to the allure of higher oil prices and are increasing their drilling activity.Indeed, the activity has worried at least one chief executive of one oil major.Conocophillips’ Ryan Lance said earlier this month that he was concerned about the pace of growth in U.S. shale oil production.Lance said on the conference call that Conocophillips is forecasting a 900,000 BPD increase in U.S. oil production this year, adding that “if you’re not worried, you should be,” as quoted.