US Department of Energy raised the forecast for oil production in the country in 2020 to 11.4 million bpd

US Department of Energy raised the forecast for oil production in the country in 2020 to 11.4 million bpd

US Department of Energy raised the forecast for oil production in the country in 2020 to 11.4 million bpd

The US Department of Energy has raised its estimate of oil production in the country in 2020 by 0.1 million b / d, to 11.4 million b / d, follows from the monthly report of the Energy Information Administration of the US Department of Energy (EIA). The forecast for 2021 is kept at the level of 11.08 million bpd.

In 2019, the average daily oil production in the United States was 12.25 million b / d.

Oil production in the United States rose, according to preliminary data, in August to 10.8 million b / d after falling from 12.7 million b / d in the first quarter to a minimum of 10 million b / d in May. Production growth has been seen as shale oil operators returned wells to production in response to rising prices. The increase in total U.S. oil production came despite the halt in production in the Gulf of Mexico as a result of Hurricane Laura.

EIA expects production to rise to 11.2 million bpd in September as production in the Gulf of Mexico resumes.

However, after September, the EIA expects U.S. oil production to decline slightly to averaging just under 11 million b / d in the first half of 2021, as new drilling is not expected to generate enough production to offset the decline in existing wells. The EIA expects drilling operations to pick up by the end of 2021, pushing U.S. oil production to its maximum.

According to EIA estimates, world production of liquid fuels averaged 91.5 million b / d in August, which is 9.7 million b / d less than a year earlier. The decline largely reflects voluntary production cuts by OPEC + countries, as well as a decline in US drilling and production due to low oil prices. The EIA expects global liquid fuel production to grow to an average of 99.3 million b / d in 2021.

US LNG Exports To Return To Pre-Crisis Levels By November

According to the EIA forecast, the export of liquefied natural gas (LNG) from the United States will return to pre-crisis levels by November this year. According to his monthly report, “US LNG exports averaged 3.7 billion cubic feet per day in August, according to our estimates, up 19% from July levels.” This happened against the backdrop of rising spot and forward prices in Europe and Asia, which fell to record lows in late May and June due to lower global gas consumption amid the COVID-19 pandemic. In August, the EIA made an estimate of exports in August at 2.2 billion cubic meters. feet per day.

Higher forward prices show an improvement in netbacks for US LNG buyers in European and Asian markets in light of the coming fall and winter amid expectations of a rebound in gas demand and a potential drop in LNG supplies due to repairs at Australia's Gorgon LNG plant, the report said.

The EIA expects US LNG exports to return to pre-dock levels by November 2020, with an average of over 9 billion cubic meters from December to February 2021. feet per day.

The EIA predicted last month that LNG exports would increase to 7.1 billion cubic meters from December 2020 to February 2021. feet per day.

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