Tags: eia | oil | crude | production

EIA Lowers 2016 US Oil Production Forecast

Tuesday, 09 Jun 2015 02:37 PM

The U.S. government lowered its 2016 U.S. oil production forecast on Tuesday, as it expects output declines to start in the second half of this year through early 2016 before it resumes.

The forecast saw production falling in 2016 overall, compared with the increase for next year foreseen in the EIA outlook last month, as the oil industry reels from the worst rout in oil prices since the financial crisis.

In its short-term energy outlook, the U.S. Energy Information Administration raised its 2015 U.S. crude oil production growth forecast to 720,000 barrels per day (bpd) from 530,000 bpd, but lowered its 2016 U.S. production by 160,000 bpd vs a 20,000 bpd growth previously.

Meanwhile, it raised its 2015 U.S. oil demand growth forecast to 380,000 bpd vs 340,000 bpd seen last month, and left unchanged its 2016 demand growth forecast to 70,000 bpd.

Since last June, U.S. producers have moved quickly to a near 60 percent drop in prices by cutting spending, eliminating jobs and idling more than a half of the country's rigs.

While production has been "more resilient to lower crude prices than many had expected," May's estimated U.S. oil output was still the highest for any month since 1972, EIA Administrator Adam Sieminski said in a statement.

However, "production still is expected to decline in the second half of this year," he added.

The EIA's report comes after its drilling productivity on Monday showing that the largest U.S. shale plays are forecast to deepen for the third consecutive month in July, even as rig productivity remains high.

© 2017 Thomson/Reuters. All rights reserved.

 
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The U.S. government lowered its 2016 U.S. oil production forecast on Tuesday, as it expects output declines to start in the second half of this year through early 2016 before it resumes.
eia, oil, crude, production
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2015-37-09
Tuesday, 09 Jun 2015 02:37 PM
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