Of­fi­cials grow less bear­ish about U.S. oil pro­duc­tion

Daily Freeman (Kingston, NY) - - NATION+WORLD -

The de­cline in U.S. oil pro­duc­tion may not be as se­vere as ex­pected just a month ago.

The gov­ern­ment is rais­ing its fore­cast of U.S. pro­duc­tion for both this year and 2017, as drillers re­spond to higher crude prices. Still, out­put won’t match 2015, which was the big­gest year for U.S. pro­duc­tion since 1972.

The En­ergy De­part­ment pre­dicted Tues­day that do­mes­tic pro­duc­tion will top 8.7 mil­lion bar­rels per day next year. That’s 140,000 more bar­rels per day than the de­part­ment es­ti­mated just a month ago.

Fore­cast­ers also raised their es­ti­mate of 2016 daily oil pro­duc­tion by 110,000 bar­rels to more than 8.8 mil­lion bar­rels.

That’s still be­low 2015’s out­put that hit 9.4 mil­lion bar­rels per day.

The ris­ing fore­cast is be­cause this year’s re­bound in oil prices has trans­lated into more drilling, said An­thony Starkey, an en­ergy an­a­lyst for S&P Global Platts.

Newspapers in English

Newspapers from USA

© PressReader. All rights reserved.