Oil and gas production in the United States will reach unprecedented levels this year and next, according to the latest Short-Term Energy Outlook from the US Energy Information Administration (EIA).
Prior to the onset of the COVID-19 pandemic, the United States reached record high production levels. This was thanks to the shale revolution, where technologies like hydraulic fracturing and horizontal drilling allowed US oil companies like Chevron and ExxonMobil, the makers of the Texaco and Mobil grease and lubricant ranges, to access new resources economically.
After a decline during the pandemic due to low oil prices, production gradually increased again to reach a new estimated record of 12.9 million barrels per day (bpd) last year. The EIA now predicts production will reach new record levels of 13.2 million bpd this year and 13.4 million bpd in 2025.
At the same time, the EIA predicts the growth in global demand will decelerate, leading to a slight surplus and relatively stable oil prices, with it ascribing:
“…reduction in growth to slowing oil demand growth in China due to stalling GDP growth, increasing vehicle fleet efficiency, and an end to pandemic recovery-related growth in 2023. Despite lower oil demand growth, global consumption of liquid fuels still reaches a new record of over 103.5 million b/d in 2025.”
The EIA also predicts that dry natural gas production will increase to 105 billion cubic feet per day (cfpd) this year, and 106 billion cfpd next year, with both of these being new records.