EIA Expects Higher U.S. Crude Production

UPI, Mar 7, 2012

Crude oil production in the United States is expected to surge to 5.83 million barrels per day in 2012, an increase from last year, the EIA declared.

The U.S. Energy Department's Energy Information Administration said in its March energy outlook that crude oil production should increase from 5.6 million barrels per day in 2011 [please see remarks below -- D.R.] to 5.83 million bpd in 2012 [please see remarks below -- D.R.].

Critics accuse U.S. President Barack Obama of blocking domestic energy production. The White House says oil production is the highest it's been in years, though Republican leaders say that's because of policies enacted by the previous administration. [Read more]

(U.S. crude oil production increased by an estimated 120 thousand bbl/d to 5.60 million bbl/d in 2011. A 390-thousand bbl/d increase in lower-48 onshore production in 2011 was partly offset by a 40-thousand bbl/d decline in Alaska and a 230-thousand bbl/d decline in output in the Federal Gulf of Mexico/GOM. Forecast U.S. total crude oil production increases by 230 thousand bbl/d in 2012 and by a further 90 thousand bbl/d in 2013. Continued increases in lower-48 onshore crude oil production of 340 thousand bbl/d in 2012 overshadow declines averaging about 20 thousand bbl/d in Alaskan output and a 90-thousand bbl/d decrease in GOM production. The rise in production is driven by increased oil-directed drilling activity, particularly in onshore shale formations (my emphasis -- D.R.). The number of onshore oil-directed drilling rigs reported by Baker Hughes increased from 777 at the beginning of 2011 to 1,293 on March 2, 2012---please see EIA's Short-Term Energy Outlook, March 6, 2012. Also, please see Aaron and David Rachovich, "U.S. Crude Oil Production, 1970-2010 -- EIA". -- D.R.)