US Oil Production To Rise 74 Percent By 2022: Report
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The United States will see a significant boom in crude oil production over the next ten years, said a report by Platts’s energy data analytics unit Bentek Energy on Monday, with production expected to increase to an average of 11.6 million barrels per day (bpd) by 2022 – compared to 6.7 million bpd today.
The United States will see a significant boom in crude oil production over the next ten years, said a report by Platts’s energy data analytics unit Bentek Energy on Monday, with production expected to increase to an average of 11.6 million barrels per day (bpd) by 2022 – compared to 6.7 million bpd today.
“Not only will the projected record growth in oil production affect North America, it will have dramatic implications for global crude oil markets,” said Jodi Quinnell, an oil analysis manager at Bentek, in a press release.
[quote]”We foresee a massive displacement of traditional waterborne oil imports to the United States by 2022, taking them from 45 percent of U.S. total crude supply to no more than five percent,” Quinnell added.[/quote]The report further goes on to predict that the significant increase in U.S. crude oil supply will eventually outpace domestic demand growth, leading to downward pressure on U.S. oil prices and deep discounts for American oil compared to international prices.
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According to Bentek, the rise in U.S. oil production will mostly be fuelled by developments in the shale industry. The Globe And Mail also reports that the shale oil boom had led to a drilling frenzy in the country, with nearly 1,409 rigs now drilling for oil – compared to just 299 U.S. rigs reported merely three years ago.
By 2016, the U.S. will surpass its 1970 oil production peak of 9.6 million bpd, says Bentek, eventually leaping to 11.6 million bpd – or a 74 percent increase – by 2022.
Though Bentek acknowledged that their projection far surpasses the one made by the federal U.S. Energy Information Administration (EIA) – by almost five million bpd – they noted that the EIA were also in the midst of an upward revision.
[quote]“Oil production is up. Natural gas is up…In the last year alone, we cut oil imports by one million barrels a day,” said U.S. President Barack Obama. [/quote]“Today the United States of America is less dependent on foreign oil than at any time in the last two decades,” and this is likely to continue, the President noted.
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