US Oil Production May Hit 12m bpd By Mid-2019

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The United States (US) crude oil production may hit 12 million barrel per day (bpd) by mid-2019, Energy Information Agency (EIA) has said.

The agency in its November 2018 report said the US remained the largest producer of crude oil globally as it produces 11.6million bpd, which is 800,000 bpd  and 700,000 bpd ahead of Russia and Saudi Arabia.

In the report entitled: Updates on Crude Movements among Oil Producing Countries, said US would maintain its leadership position for some time in the event that the country is able to sustain its crude oil production.

“That is a threshold increase from the US low reached a decade ago and a 22.2 per cent rise just this year. The feat makes the US the world largest producer of crude. More US oil will likely come.US is expected to break through 12 million bpd by mid-2019, largely thanks to a surge in shale oil production”

Oil markets, according to the report, were held back somewhat after the US became the world’s top crude producer as its output hit record levels. Crude oil imports rose as uncertainty around tariffs on US imports and sanctions on Iran eased, the report added.

The report said production has just risen in the US as well as in countries such as Russia, Saudi Arabia, Iraq and Brazil, a development, which suggests a return of oversupply of crude in the market, which depressed oil prices between 2014 and 2017.

Authored By: Akinola Ajibade
SOURCE: THE NATION

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