US crude oil production saw consecutive two-month increase in November
U.S. crude oil production increased for the second consecutive month in November 2016, which was the first two-month increase since early 2015, according to a recent report from the U.S. Energy Information Association (EIA).
Increased drilling activity in the Permian region in Texas and New Mexico, as well as new projects in the Federal Offshore Gulf of Mexico (GOM), more than offset decreasing production in other regions.
The West Texas Intermediate crude oil price rose to over $45 per barrel in May 2016, a change that led to a rapid increase in drilling. The Permian region added about 85 rigs from May to November 2016.
The Permian region was the only area in EIA’s Drilling Productivity Report that did not experience a year-over-year production decrease for any single month from 2014 to 2016.
U.S. crude oil production is likely to continue to increase, EIA said, due to current crude oil prices above $50 per barrel and growth in the number of drilling rigs.
EIA predicts that crude oil production in the GOM will grow by 30,000 barrels per day in 2017 and by 140,000 in 2018.
The United States averaged 8.9 million barrels per day of crude oil in 2016. Total U.S. production from the Lower 48 states, the GOM, and Alaska is expected to average 9.0 million barrels per day in 2017 and 9.5 million barrels per day in 2018.
