US crude oil production likely to increase through end of 2017 – EIA

HOUSTON (ICIS)–US crude oil production will average 9.4m bbl/day for the second half of 2017, measuring approximately 340,000 bbl/day more than during the first half of the year, the US Energy Information Administration (EIA) said on Monday.

For 2018, production is expected to average 9.9m bbl/day, the EIA said. The projected average would surpass the previous high of 9.6m bbl/day set in 1970, based on estimates from the EIA’s Short-Term Energy Outlook (STEO).

West Texas’ Permian region will account for most of the crude oil production growth for the second half of 2017, based on STEO predictions.

The EIA attributed crude oil average monthly prices for West Texas Intermediate (WTI), which have remained higher than $45/bbl since the second half of 2016, for the increase in production in the Permian region.