EIA: Largest increase in U.S. oil production in a century

Oil jack
Source: DollarPhotoClub

According to the latest data from the U.S. Energy Information Agency (EIA), over the past decade, the country increased its crude oil production by 1.2 million barrels per day, totaling production of 8.7 million barrels of crude oil per day.

Data released by the EIA shows that only last year crude oil production increased by 16.2 per cent. This growth in output is the highest increase in crude oil extraction since 1900. The extraction of crude has increased six years in a row, an upward trend not checked by the fact that over the last six months prices of oil have fallen considerably.

Analysts believe that most of the increase during 2014 came from tight oil plays in North Dakota, Texas, and New Mexico where hydraulic fracturing and horizontal drilling were used to produce oil from shale formations.

However, the EIA experts believe that this coming year will see a slowdown in annual crude oil production; 8.1% this year and 1.5% next year, according to EIA’s latest Short-Term Energy Outlook (STEO). This would be despite the fact that overall oil production is expected to rise in 2015 and again in 2016, though not as sharply as in previous years.

The slowdown in growth is more evident when looking at production between December 2014 and December 2015, which is forecast to rise by just 200,000 bbl/d.

Annual change in US crude production, EIA
Source: EIA

Source: EIA
Source: EIA

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