US Oil Output to Set More Records in 2019
Already off to an amazing start in 2019, U.S. oil production is on track to set another record this year.
Energy research firm Rystad Energy forecasts U.S. crude output to 13.4 million barrels per day (MMbpd) by Dec. 2019 and averaging 12.5 MMbpd in May 2019 – both new all-time highs.
“Our U.S. supply projections have been revised up yet again. U.S. oil production is already higher than many in the market believe,” said Bjørnar Tonhaugen, Rystad’s head of oil market research.
Tight oil (shale) alone reached pre-winter levels of 8.5 MMbpd in May, according to preliminary U.S. well production data. This caused Rystad to revise the 2019 U.S. total production exit rate by about 200,000 bpd to 13.4 MMbpd.
“Strong growth persists in the Permian Basin on both the New Mexico and the Texas sides,” said Tonhaugen. “Updated production estimates suggest that the Permian Basin surpassed 4.5 MMbpd in May. Considering the ongoing recovery in fracking activity, Rystad Energy maintains its previous expectation that Texas production will exceed 5 MMbpd at some point during the second quarter of 2019.”
Rystad recently reported that oil production in the U.S. Gulf of Mexico is poised to set records this year as well, reaching 1.95 MMbpd – partly thanks to the early start-up of Shell’s Appomattox field.
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