U.S. Energy Information Administration Increases Oil Production Estimates

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Researched by Industrial Info Resources (Sugar Land, Texas)--The U.S. Energy Information Administration (EIA) in its latest "Short-Term Energy Outlook," released earlier this week, increased its U.S. oil production estimates for both 2014 and 2015, boosted by both shale and offshore oil production.

The EIA now expects domestic oil production to be 9.53 million barrels per day (BBL/d) in 2015, an increase of 250,000 BBL/d from the agency's previous estimates. The EIA also has increased its estimates for average U.S. oil production in 2014 by 70,000 BBL/d to 8.53 million BBL/d.

Click on the image at right for a graph detailing active projects in the U.S. Oil & Gas Production, Pipelines and Terminals industries.

What's significant about these figures is that the 2015 production estimate is approaching the highest-ever previous U.S. crude oil production level of 9.6 million BBL/d, set in 1970. The increase comes in large part from ever-increasing oil production from U.S. shale formations, such as the Bakken and Eagle Ford, as well as continued growth in offshore production in the Gulf of Mexico, which the EIA estimates will increase from 1.25 million BBL/d in 2013 to 1.67 million BBL/d in 2015.

This new growth in crude oil production, according to the EIA, will help lower the net import consumption share to 21% for the U.S. in 2015, the lowest level since 1968.

As U.S. oil and gas production increases, construction of new infrastructure, such as storage terminals and pipelines continues to escalate. Industrial Info continues to monitor both capital and maintenance projects in these industries, which account for more than 1,800 active projects valued at more than $325.5 billion in the Oil & Gas Production, Terminals and Pipelines industries.

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Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.