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U.S. Is Set to Become World’s Top Oil Producer, Government Says

Bloomberg Quint

The U.S. government sees oil production further climbing next year even amid transportation logjams in the country’s most prolific shale play.

The Energy Information Administration sees U.S. crude output averaging 11.8 million barrels a day in 2019, up from its 11.76 million barrel a day estimate in the June outlook.

“In 2019, EIA forecasts that the United States will average nearly 12 million barrels of crude oil production per day,” said Linda Capuano, Administrator of the EIA. “If the forecast holds, that would make the U.S. the world’s leading producer of crude.”

U.S. crude output has remained above the 10-million-barrel a day mark since February. That’s while Saudi Arabia told OPEC it pumped about 10.5 million barrels of crude a day last month as the kingdom sought to cap rallying prices by ramping up output, according to people familiar with the matter.

Concerns linger over the worsening bottleneck in the biggest U.S. shale region, the Permian Basin, and how that might affect domestic output in the second half of the year. Due to limited pipeline transportation in the region, production may start to slow in the area, according to Scott Sheffield, the chairman of Pioneer Natural Resources Co. “We will reach capacity in the next 3 to 4 months,” he said in June.

The EIA left its average domestic output forecast for this year unchanged at 10.79 million barrels a day, above the 1970 record of 9.6 million a day, according to the agency’s Short-Term Energy Outlook released on Tuesday. Its global crude production forecast for next year was raised to 102.54 million barrels a day from a previous forecast of 102.21 million a day. The agency’s world demand growth estimate for 2019 was lowered.

©2018 Bloomberg L.P.

https://www.bloombergquint.com/markets/2018/07/10/u-s-set-to-become-world-s-top-oil-producer-government-says

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7 Responses to U.S. Is Set to Become World’s Top Oil Producer, Government Says

  1. Katie says:

    Dang! I’m looking forward to .50 cents per gal. gas.

  2. Sunfire says:

    And yet here we are paying through the roof for home heating oil and gasoline.

  3. NC says:

    So why am I paying so much at the pump?

  4. H D says:

    I was hoping for free gas

  5. Jolly Roger says:

    Wasn’t is four or five articles after this one that they were warning us the “World oil supply risks being ‘stretched to limit’: IEA..”
    http://fromthetrenchesworldreport.com/world-oil-supply-risks-being-stretched-to-limit-iea/229819

    “…..The agency’s world demand growth estimate for 2019 was lowered……”

    So output is up, demand is down, but gas prices have to rise because today they decided that the world’s oil supply is stretched to the limit.

    You’d think they’d wait a day before changing the story, but I guess the lies have to move as quickly as the prices do.

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