News

US Production Poised to Grow

Wednesday, August 17, 2016

Amid ongoing news of low and stagnant oil prices, it is easy to assume that U.S. oil production will also remain in a slump. A recent analysis by Forbes reaches a different conclusion, however. That report actually forecasts that U.S. production is poised to grow in the coming years.

U.S. Oil Industry Projections from the U.S. Energy Information Administration anticipate a continued increase in U.S. oil and gas production in coming years, says Forbes. In fact, the EIA increased crude oil production forecasts through 2030 by more than 20 percent between 2014 and 2016.

Part of the reason for this increased production is improving efficiencies. Another part of the equation is that there is now known to be considerably more oil in the Bakken Shale Fields than once thought. Early estimates by the U.S. Geological Survey indicated about 150 million barrels of oil in the Bakken. Now, with 150 million barrels being extracted from the Bakken every five months, estimates are that there is still another 25 billion barrels of crude that can be recovered.

Oil industry jobs are also expected to again increase. Goldman now projects that there will be as many as 100,000 new oil jobs added by 2018, says Hellenic Shipping News.

Ultimately, oil is still the fuel that drives the world’s economy. Significantly, large parts of that economy, like China and India, are poised to grow in coming years, and as demand increases for oil as their economies expand, more and more oil will be needed from the U.S. and other world producers, continuing to drive growth.

In another sign that U.S. oil companies are also anticipating improvement in the market, oil drillers continue to add rigs. During the second week of August, drillers added 17 new rigs, reports Reuters, marking the seventh straight week of increases.

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