January 27, 2023 15:36 GMT
Output From Permian Region Driving US Oil Production Growth
EIA forecast that crude oil production in the US will increase from 11.9mb/d in 2022 to 12.4mb/d in 2023 and 12.8mb/d in 2024. The previous record output was 12.3mb/d set in 2019.
- The increase is mainly driven by higher output from the Permian region but also from the Federal Offshore Gulf of Mexico.
- Completion of new pipelines will allow producers to transport more natural gas and therefore remove a potential constraint on crude oil production. Permian output is forecast to increase by 470kb/d to average 5.7mb/d in 2023 and by another 350kb/d in 2024.
- Crude oil production in the GOM is expected to increase by 120k b/d in 2023.