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The United States Energy Information Administration (EIA) anticipates the U.S. crude oil production to rebound to another record high in 2023 after taking a toll from the COVID-19 outbreak.
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Global Oil Output to Gradually Pick Pace
As per the EIA, the United States crude oil output would top the previous record of 12.25 million barrels per day, seen in 2019 by 2023 after witnessing a 6.4 per cent decline in 2020 at 11.47 million barrels per day.
The U.S. and other major oil producing economies are trying to gain the lost ground post the plunge in production.
Also Read: Crude Oil Prices Stall, Will the Northward Move Continue?
The COVID-19 travel restrictions have taken a deep toll over the global oil demand, forcing many oil & gas companies to bring down production while putting production on hold across many assets. Additionally, the travel restrictions have pushed many global oil & gas companies to accelerate their future plans, which should now support the global oil output.
EIA anticipates the United States oil production to peak at 13.88 million barrels per day by 2034, after which, the production is anticipated to gradually decline as many global economies reach near to net zero emissions goals.
Gas Demand to Surpass 2018 Record High
Additionally, as many global economies transit towards carbon neutrality, the demand for gas is also anticipated to surge going forward, leading to higher production. As per the EIA’s estimation, gasoline demand might increase by 9.1 per cent in 2021 to stand at 8.97 million barrels per day. The consumption levels of 9.33 million barrels per day, seen in 2018, is considered to be a tall order to beat anytime soon.
Furthermore, the demand for natural gas is also anticipated to increase gradually with average growth of 0.5 per cent per annum, taking the overall demand of the commodity to 35.4 trillion cubic feet by 2050. The demand for U.S. LNG is also predicted to increase, pushing the overall exports of the commodity.
EIA anticipates the U.S. LNG exports to grow at an average of 2.6 per cent an annum to reach a record high of 5.0 trillion cubic feet by 2032 while remaining steady around the same level until the end of the year 2050.
Moving down the line, EIA projects gas to represent 3.6 per cent of the overall energy mix as the mixture of coal and nuclear gradually declines by 2050.
While a gradual increase in production of both oil & gas has been projected by EIA, the United States primary federal government authority on energy statistics and analysis also anticipates that the current energy estimates are uncertain because of the impact of multitudes of events which shape energy markets.
