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US oil production is 23 years ahead of schedule
[NEW YORK] A year ago, the US government saw American crude production averaging 11.95 million barrels a day in 2042. Shale drillers are set to exceed that this year.
The Energy Information Administration (EIA) now estimates output will top out at 14.53 million barrels a day in 2031, according to its Annual Energy Outlook released Thursday.
Why such a big difference? Near-term prices are higher than what the agency assumed last year, boosting the baseline production, according to the EIA.
The US will be a net exporter of petroleum - and energy in general - next year, years sooner than previous annual estimates, something the EIA flagged in its short-term outlook earlier this month. That's due to the faster increases in crude and natural gas liquids production, combined with slower demand growth, according to EIA Administrator Linda Capuano.
"America's move to net exports was supposed to be 5 or 6 years off," said Kevin Book, managing director of the Washington-based consultancy ClearView Energy Partners LLC. "Now it's next year. That's big news."