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Oil and natural gas production in the United States jumped 16% and 12% respectively in 2018, setting new production records and positioning the United States as the world's largest oil and natural gas producer, the United States. Energy Information Administration (EIA). said Tuesday.
The United States had already overtaken Russia as the world's largest natural gas producer in 2011.
Last year, the United States beat Saudi Arabia to become the largest oil producer, the EIA said, noting that "The increase recorded last year in the United States was one of largest absolute increases in oil and natural gas production in a country. "
While Saudi Arabia is bound by the OPEC + production reduction pact and has limited oil production in order to drive up prices, US shale production has increased over the last two years. – even supported by the rise in oil prices resulting from the agreement with OPEC.
Crude oil production in the United States jumped 17% in 2018, setting a new production record of almost 11.0 million bpd, with the Permian contributing essentially to output growth, said the EIA.
This year, however, US shale production has been growing at a slower pace, as oil prices fall, as companies cut drilling plans and budgets, while investors demand more returns.
US shale producers must slow down their production growth and focus more on the discipline of capital in an oversupplied market, Continental Resources' Harold Hamm said last week.
In its latest report on the short-term energy outlook (STEO) earlier this month, the EIA sees the monthly growth in shale production in the United States slow down at least until 2020, with an average of 50,000 barrels per day between the fourth quarter of 2019 and the end of 2020, down from average growth. of 110,000 bpd per month from August 2018 to July 2019. Despite slower growth, the EIA still expects crude oil production in the United States to reach record levels of production in 2019 and 2020 , at 12.3 million bpd and 13.3 million bpd, respectively.
By Tsvetana Paraskova for Oilprice.com
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