In a report published Monday by the U.S. Energy Information Administration (EIA), the agency said that most of the 2014 increase came from tight (shale) oil plays in North Dakota, Texas and New Mexico. Horizontal drilling and hydraulic fracturing (fracking) have yielded most of the production increases in the past year and in the five years before that.
Between 1985 and 2008, domestic crude oil production dropped every year but one. Beginning in 2009, crude production has increased every year, and for the past three years has averaged growth of around 15% per year.
For 2015 the EIA is expecting crude oil production to rise by 8.1%, as the lower prices for oil have cooled enthusiasm for higher production. In 2016 the EIA expects production to rise by just 1.5%, as the crude market regains its balance between demand and supply. According to the agency’s latest projection, total U.S. crude oil production in 2015 is expected to average 9.3 million barrels a day, and 9.5 million barrels a day in 2016.
The EIA has forecast the Brent crude oil prices will average $59 a barrel in 2015 and $75 a barrel in 2016. West Texas Intermediate (WTI) crude oil prices are expected to average $52 a barrel this year and $70 a barrel next year.
As of last Friday, the number of rigs drilling for oil in the United States fell by 674 year-over-year and by 12 week-over-week. The number of rigs drilling for oil in the country totaled 813, compared with 825 in the prior week and 1,487 a year ago.
Top Gaining Stocks
Top Losing Stocks