EIA Cuts Crude Forecast | Russell T. Rudy Energy LLC
“Rigzone” reports that the U. S. Energy Information Agency (EIA) now foresees falling crude prices as having a larger impact on domestic oil production than it had previously thought. The agency reduced its 2015 forecast by 1.5% to 9.22 million barrels per day (bpd).
Administrator Adam Sieminski predicted that domestic crude production will continue to fall through the middle of next year as well. The EIA accordingly has reduced its 2016 forecast from 8.96 to 8.82 million bpd.
Shale operators have already reduced the number of rigs looking for oil to less than half the level of a year ago. Production in the first five months of 2015 was 9.44 million bpd as opposed to an original forecast of 9.53. However, Sieminski feels that output will begin to recover in the second half of 2016 if prices firm as predicted.
To read the article in its entirety, please go to http://www.rigzone.com/news/article.asp?hpf=1&a_id=140533&utm .
