US natural gas and oil production to fall in 2021

Posted at January 19, 2021 » By : » Categories : News » Comments Off on US natural gas and oil production to fall in 2021

Production of natural gas and oil is forecast to fall in the US this year and rise again in 2022.

That’s according to the Energy Information Administration’s (EIA) latest ‘Short Term Energy Outlook’, which expects annual US crude oil production to average 11.1 million barrels per day (b/d) in 2021, down 0.2 million b/d from last year.

That would be a result of a decline in drilling activity related to low oil prices, it states, with responses to the COVID-19 pandemic also leading to supply and demand disruptions.

Crude oil production is, however, expected to increase in 2022 by 0.4 million b/d because of increased drilling as prices remain at or near $50 (£37) per barrel.

Annual natural gas production records were set in the US in 2018 and 2019, largely due to increased drilling in shale and tight oil formations, which led to higher volumes of natural gas in storage and a fall in natural gas prices.

The EIA estimates annual US marketed natural gas production will decline by 2% to average 95.9 billion cubic feet per day in 2021 and will reverse the following year when production is expected to rise by 2%.

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