Image courtesy of Mike Towber/Flickr.

The U.S Energy Information Administration raised its 2015 domestic production forecast Tuesday but lowered its 2016 outlook to account for expected drops in shale production.

The agency expects 2015 oil production to rise to 9.35 million barrels per day, a slight jump from last month’s forecast of 9.3 million bpd.

The agency’s 2016 total oil production forecast was revised down to 9.49 million bpd from 9.52 million bpd.

An EIA spokesman told Reuters the revised forecast is necessary because of an increase to the agency’s baseline fourth quarter expectations and a projected rise in Gulf of Mexico production.

The revised outlook came on the heels of another EIA report showing that U.S. shale production will grow at the slowest rate in four years beginning in April.

Production at the six largest U.S. shale plays is expected to hit 5.6 million bpd in April, a spike of less than 300 bpd over March.

West Texas Intermediate crude prices are expected to average $52.15 per barrel in 2015, down from the agency’s previous forecast of $55.02.

The EIA added that crude storage levels will continue to grow during the next two months.

U.S. crude storage is currently at 62 percent capacity, the highest level since 1930.



Leave a Reply