US raises domestic crude production growth forecast for 2024
March 12 (Reuters) - The U.S. Energy Information Administration (EIA) on Tuesday predicted that domestic oil production will grow by 260,000 barrels per day (bpd) in 2024, up 90,000 barrels per day (bpd) from its previous forecast, but said estimated production cuts from OPEC+ will still slow global oil growth.
U.S. crude oil production will rise to 13.19 million barrels per day (bpd) this year, the EIA said in its Short-Term Energy Outlook (STEO). It had previously projected that crude production would rise this year by 170,000 bpd.
|
Advertisement: The National Gas Company of Trinidad and Tobago Limited (NGC) NGC’s HSSE strategy is reflective and supportive of the organisational vision to become a leader in the global energy business. |
U.S. crude oil output reached a record 13.3 million bpd in December 2023, following sustained productivity increases at new wells. Production notched an annual record of 13.21 million bpd in 2023.
U.S. oil production is expected to rise by 460,000 bpd to 13.65 bpd in 2025, which would be a record high.
OPEC+ production cuts will help push the Brent crude oil spot price to average $87 a barrel in 2024, up from its previous forecast of $82.42 a barrel, the EIA forecast.
The agency previously predicted that U.S. production would decrease slightly through the middle of 2024 and would not exceed the record set last December until February 2025.
However, the agency now forecasts steadily increasing production with output surpassing last year’s record by the fourth quarter of 2024.
The U.S. EIA predicted world oil demand output would grow by 1.43 million bpd year-on-year, up 10,000 from its previous forecast and in line with the International Energy Agency. The EIA also raised its 2025 world oil demand growth forecast by 90,000 bpd, anticipating a 1.38 million barrel year-on-year increase.
In February this year, the IEA predicted global demand will rise by 1.22 million barrels per day (bpd) in 2024, while in its February report OPEC expected 2.25 million bpd. The difference is about 1% of world demand.
U.S. total petroleum consumption is expected to rise by 200,000 bpd to 20.4 million bpd in 2024, and then by another 200,000 bpd to 20.6 million bpd in 2025 – higher than previously forecast, the EIA said.
(Reporting by Laura Sanicola and Georgina McCartney; Editing by Liz Hampton, Marguerita Choy and David Gregorio)