Record Oil Production in 2015? | Russell T. Rudy Energy LLC
“World Oil” reports that U. S. oil production might peak at 9.7 million barrels per day (MMbpd) by September of 2015, according to Rystad Energy. “Oil” in this case is defined as crude oil and lease condensate.
Rystad’s analysis assumed an average West Texas Intermediate oil price of $55 for the year, and 400 horizontal oil drilling rigs running in the Bakken, Eagle Ford and Permian shale plays for the rest of 2015. Total oil production could be even higher given lower drilling costs, lower price differentials for Bakken crude, and a reduced backlog of drilled, but as yet uncompleted, wells.
Last week domestic oil production reached 9.42 MMbpd. When one factors in 400 Mbpd of plant condensate from natural gas processing facilities, the U. S. would have already surpassed the 9.64 MMbpd annual average of 1970.
The one time record for daily production was set in November of 1970 when we produced 10.044 MMbpd, which approximates current levels for Saudi Arabia. While record production rates are positive in some respects, they can exert downward pressure on oil prices given the current global glut.
To read the article in its entirety, please go to http://www.worldoil.com/news/2015/4/1/us-oil-production-on-track-to-reach-all-time-high-in-2015-says-rystad-energy .
