Officials grow less bearish about U.S. oil production
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.