US crude oil production will continue to increase this year and may even exceed Saudi and Russian production over the medium term, according to forecasts by the US Energy Information Agency (EIA).
“Domestic oil production will be very robust this year and will reach new heights,” EIT Interim Administrator John Conti said Tuesday after a monthly report from the organization.
In this paper, the EIA forecasts US crude oil production at 10.04 million barrels per day on average in the first quarter of 2018, and 10.27 million barrels per day on average over the year as a whole. .
This annual level “would be the highest in the history of the United States, surpassing the previous record of 9.6 million barrels per day established in 1970,” said the EIA in its report.
US production should not stop there, anticipates the EIA, crossing the bar of 11 million barrels per day in the fourth quarter of 2019 with 11.04 million barrels per day on average.
For the whole of 2019, it will peak at 10.85 million barrels per day, a new record.
This level is higher than production in Saudi Arabia, evaluated by the EIA at 10.46 million barrels per day for 2016, before the country went under an agreement with the members of the Organization of Petroleum Exporting Countries (OPEC) to reduce oil production.
It is also more than Russia’s output which stands at 10.55 million barrels a day in the same year according to the EIA, since the country was also forced by the same reduction agreement.
US producers, not subject to the agreement of OPEC and its partners, are taking advantage of the rise in crude oil prices to revive exploration projects.
The barrel of crude quoted in New York and London closed on Tuesday at the highest for more than three years.