EIA expects new milestones for US crude oil production

EIA expects sustained global demand for petroleum products and Saudi Arabia’s extended voluntary production cuts will contribute to oil prices rising through the year. The Brent crude oil price was near US$75 per bbl at the beginning of July and increased throughout the month to surpass US$86 per bbl on August 4. EIA forecasts the Brent crude oil price to increase the rest of 2023 and to approach US$90 per bbl in late 2023.

Joe DeCarolis, EIA Administrator, said: "We forecast continued growth in domestic oil production, which is bolstered by higher oil prices and higher well productivity in the near term.”

EIA forecasts U.S. regular gasoline prices will average about US$3.63 per gallon for the rest of 2023, an increase from its previous forecast of US$3.27 per gallon. Higher gasoline prices are largely the result of higher crude oil prices and a series of unplanned U.S. refinery outages so far this summer.

Also, in the August STEO, EIA expects that July’s high temperatures and resulting demand for air conditioning led to near-record levels of electricity consumption. EIA estimates about 388 billion kilowatthours of electricity was consumed in the US during July, about equal to the record for monthly US consumption set in August 2022.

"Most of the country felt some brutal heat in July, and just like last summer, that heat significantly increased electricity consumption," DeCarolis said.

Read the article online at: https://www.oilfieldtechnology.com/special-reports/10082023/eia-expects-new-milestones-for-us-crude-oil-production/