U.S. crude output to decline more than previously forecast in 2021
U.S. crude oil production is expected to fall by 290,000 barrels per day (bpd) in 2021 to 11.02 million bpd, the U.S. Energy Information Administration (EIA) said, a steeper decline than its previous forecast for a drop of 270,000 bpd.
U.S. oil producers have been gradually increasing drilling activity as oil prices have rebounded but output growth has been muted as investors pressure companies to rein in spending and focus on returns.
In 2022, output is expected to rise by 820,000 bpd to 11.84 million bpd, unchanged from the EIA's estimate last month.
"Because the average price of West Texas Intermediate crude oil remains above $55 per barrel in our forecast, we expect producers will drill and complete enough wells in the coming months to offset declines at existing wells," the agency said in a monthly forecast.
The EIA said it expects U.S. petroleum and other liquid fuel consumption to rise 1.39 million bpd to 19.51 million bpd in 2021, compared with a previous forecast for a rise of 1.32 million bpd.
The agency expects that gasoline consumption in the United States will average almost 9 million bpd this summer, between April and September, which is 1.2 million bpd more than last summer but almost 600,000 bpd less than summer of 2019.
For 2022, U.S. consumption is forecast to rise 1.02 million bpd to 20.53 million bpd, higher than its previous estimate for an increase of 980,000 bpd. (Reporting by Devika Krishna Kumar in New York Editing by Marguerita Choy)
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