As Rystad Energy reports, the overall US oil production is on track for another record year. The company forecasts that the US crude output will reach the 13.4 million barrels per day by December 2019, whereas May’s crude oil production is expected to reach the average of 12.5 million bpd.
Preliminary US well production data reflect that tight oil production alone reached pre-winter levels of around 8.5 million bpd in May.
Rystad Energy commented that they expect to 2020’s exit rate to 14.3 million bpd, experiencing an increase of about 75,000 bpd.
Bjørnar Tonhaugen, Head of Oil Market Research at Rystad Energy addressed
Our US supply projections have been revised up yet again. US oil production is already higher than many in the market believe.
In addition, the production in the Gulf of Mexico is expected to reach the 1.95 bpd by the end of 2019, 135,00 bpd more than their last update, which is due to the early start-up of Shell’s Appomattox field.
Strong growth persists in the Permian Basin on both the New Mexico and the Texas sides. Updated production estimates suggest that the Permian Basin surpassed 4.5 million bpd in May. Considering the ongoing recovery in fracking activity, Rystad Energy maintains its previous expectation that Texas production will exceed 5 million bpd at some point during the second quarter of 2019.
