According to the Energy Information Administration, U.S. crude oil Production will surpass pre-pandemic levels next year, owing to an increase in shale output as higher prices encourage companies to drill more wells to counteract decline rates. The EIA said in its January Short-Term Energy Outlook (STEO), which published its initial projections for 2023, that crude oil output in the United States will average 12.4 million barrels per day (bpd) next year.
Due to weather-related shut-ins during the Texas Freeze in February and Hurricane Ida in August and September, annual average US oil Production declined by 100,000 bpd to 11.2 million bpd in 2021, according to the administration. Last year’s output was 1.1 million bpd lower than the annual record of 12.3 million bpd set in 2019, shortly before COVID struck, forcing operators to cut, rein on capital expenditures, and reward shareholders before considering growth.
The average yearly crude oil Production in the United States is expected to rise to 11.8 million barrels per day this year. According to the EIA, the record annual average from 2019 will be topped next year, with 12.4 million bpd expected in 2023. From the fourth quarter of 2021 to the fourth quarter of 2023, the EIA predicts that US crude oil Production would rise for nine consecutive quarters.
Despite the EIA’s prediction of record annual average crude oil output in 2023, the EIA does not expect Production to exceed the monthly record of 12.97 million bpd set in November 2019. The EIA anticipates that rising US crude oil output will add to the global oversupply relative to demand growth. This year, America’s petroleum and liquid fuel consumption will slightly exceed 2019 levels, averaging 20.6 million bpd, with increasing gasoline consumption leading the way.