production will grow will depend on how producers react to $80 oil prices and whether they will continue to stick to spending restraint at these high prices. Related: Shell’s Gas Trading Booms While Oil Trading SlowsĪll analysts expect growing supply from both OPEC+ and the non-OPEC+ producers, mostly the United States, this year. One of the bearish factors for the oil market this year could be the faster oil supply growth compared to the expected demand increase, which still hinges very much on COVID developments and potential new waves and restrictions. consumption will reach 20.9 million bpd, led by growth in hydrocarbon gas liquids (HGLs). This year, America’s consumption of petroleum and liquid fuels will slightly surpass 2019 levels and will average 20.6 million bpd, led by higher gasoline consumption. “We expect that as crude oil production increases, inventories will begin to replenish and help push prices lower for gasoline, jet fuel, and other products in the short term,” Nalley added. “We expect global demand for petroleum products to return to and surpass pre-pandemic levels this year, but crude oil production grows at a faster rate in our forecasts,” EIA Acting Administrator Steve Nalley said in a statement. crude oil production will add to the global oversupply compared to demand growth, the EIA predicts. Related: 5 Energy Dividend Stocks To Consider In 2022 Despite the forecast of record annual average crude oil production in 2023, the EIA does not expect that production in any month in the forecast will surpass the monthly record of 12.97 million bpd set in November 2019. “Production growth reflects oil prices that we expect will be sufficient to lead to continued increases in upstream development activity, which we forecast will proceed at a pace that will more than offset decline rates,” the administration noted. crude oil production will increase for nine consecutive quarters, from the fourth quarter of 2021 through 2023. Next year, the record annual average from 2019 will be exceeded, the EIA says, expecting 12.4 million bpd in 2023.ĮIA forecasts U.S. crude oil production is set to grow to 11.8 million bpd. Output last year was 1.1 million bpd below the annual record of 12.3 million bpd from 2019, just before COVID struck and forced operators to curtail production, keep a tight rein on capital expenditures, and reward shareholders before thinking of growing production. oil production fell in 2021 by 100,000 bpd to average 11.2 million bpd due to weather-related shut-ins during the Texas Freeze in February and Hurricane Ida in August and September, the administration said. America’s crude oil production is set to average 12.4 million barrels per day (bpd) next year, the EIA said in its January Short-Term Energy Outlook (STEO), in which it revealed its first estimates for 2023. crude oil production is set to exceed pre-pandemic levels next year, driven by a jump in shale output as higher prices incentivize producers to drill more wells to offset decline rates, the Energy Information Administration says.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |