U.S. Oil Production not snapping as fast as expected

[dan_s]

Reuters reported U.S. crude oil production is expected to fall by 200,000 b/d in 2021 to 11.08 million b/d, the EIA said on Wednesday, noting that Hurricane Ida should force a bigger decline than its previous forecast for a drop of 160,000 b/d. The agency said it expects U.S. petroleum and other liquid fuel consumption to rise 1.55 million b/d to 19.74 million b/d in 2021, a smaller increase compared with a previous forecast for a rise of 1.58 million b/d.

For 2022, U.S. crude output is expected to increase to average about 11.72 million b/d, driven by growth in shale production. Demand for 2022 is expected to rise 890,000 b/d to 20.63 million b/d, a bigger increase than the agency's previous forecast for a rise of 860,000 b/d.

U.S. crude oil production peaked at 12.86 million b/d in November, 2019. Actual production in June, 2021 was 11.31 million b/d in the U.S.

Globally, an estimated 98.4 million b/d of petroleum and liquid fuels was consumed globally in August, an increase of 5.7 million b/d from August 2020 but still 4 million b/d less than in August 2019, the EIA said.